AI’s Hidden Price Tag Threatens Indie Developers and Startups

Smarter AI is driving up costs for developers as token-hungry workflows balloon bills, while startups feel the squeeze and larger firms absorb the hit with scale.

AI is getting sharper, and it’s getting pricier too. Rising costs are squeezing startups and independent developers building on the latest models.

According to the Wall Street Journal, the price per unit of AI is falling, but the surge in complex tasks means developers are burning through far more tokens. What was billed as the race to build the “smartest AI” is fast becoming a contest over who can shoulder the most expensive systems.

Token drain turns simple tasks into costly workloads

Even basic AI requests can consume hundreds or thousands of tokens, while advanced tasks run far higher. Data from the WSJ shows:

• Basic chatbot Q&A: 50 to 500 tokens.
• Short document summary: 200 to 6,000 tokens.
• Basic ...