0915 GMT - Falling token prices may help artificial-intelligence adoption, according to Julius Baer's Enrico Chinello in commentary. "China's cheaper open-weight models have driven token prices significantly down from the peaks in May, forcing U.S. model providers into adapting their pricing," says the next generation research analyst. While pricing pressure may challenge returns across the AI infrastructure investment cycle, the net effect is positive for AI adoption, Chinello says. Julius Baer remains constructive on cloud computing and AI, as lower prices could accelerate adoption and the need for compute power.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.