LLM Token Index: Plunges Over 50% on AI Slowdown

LLM token expenditure index has already dropped more than 50% from its peak as cost savings and substitution for cheaper models accelerate AI token price deflation across closed and open Chinese systems. Most Chinese models remain 2x-3x cheaper, leaving further downside ahead. Andre Dragosch notes G20 central banks now favor net rate hikes, tightening monetary policy that will sharply decelerate global semiconductor sales growth from June levels and amplify the AI industry impact on token economics.