AI costs spike as subscriptions hit pricing wall — firms turn towards Chinese LLMs, open-source models to extend budget

Jowi Morales

June 13, 2026


Companies look for cheaper alternatives as token costs for frontier AI models skyrocket, potentially impacting OpenAI and Anthropic’s bottom lines. Subscriptions also take a bite out of these startup’s profitability, as utilization rates higher than 5.7% could lead to losses.

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