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Palo Alto CEO Arora Says AI Token Costs Must Fall 90%, Lauds OpenAI's 54% Efficiency Gain

AI Industry News

2026-07-09 17:25:47

PANW4.72%

According to CNBC, Palo Alto Networks CEO Nikesh Arora said Thursday that artificial intelligence token costs need to drop as much as 90% to enable large-scale business adoption. After OpenAI CEO Sam Altman disclosed that the company's latest model achieved 54% greater token efficiency for agentic coding, Arora called it a positive step but said further reductions are necessary. Arora projected token efficiency must decline to 20% over the next twelve months, then 90% within the following year, as current pricing creates barriers for enterprises implementing AI tools.

Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.

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