Prepare for the AI Token Rug Pull
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Artificial intelligence may look cheaper than ever, but many of today’s prices are being subsidized by investors while model providers lose billions of dollars. Once that funding slows down, thousands of businesses built on cheap API access could face sudden price increases they cannot survive. This video examines the real economics behind AI tokens, OpenAI’s enormous infrastructure costs, NVIDIA H100 clusters, cloud contracts, and the startups known as AI “wrappers.” These companies often depend entirely on models they do not own, leaving them vulnerable to changing prices, retired APIs, weaker models, or direct competition from the same providers supplying their technology. We also explore AI shrinkflation, vendor lock-in, “Sherlocking,” advertising inside AI platforms, and why traditional software profit margins may not apply to systems that require expensive chips and massive amounts of electricity for every request. Cheap AI was never guaranteed to last. It may have been the bai
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