Citigroup data shows that token prices in Europe, the US, and China are converging. This is because high prices in Europe and the US have been driven down by competition, while the price war in China is beginning to subside.
The benefits include lower AI application costs, increased corporate bargaining power, and accelerated commoditization of model APIs. For Chinese model vendors, this will help improve revenue quality and gross margins. However, for vendors that simply sell APIs or inference services, pricing power will continue to be challenged. Ultimately, the market will shift from "who has the strongest model" to "who can turn AI into a stable cash flow at the lowest cost."
