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As of 2026-08-05, @Silicon_Data reports the LLM Token index is continuing to…

2026-08-05 · 11:30 UTC ·@Silicon_Data ·1 min read

Brief

Silicon_Data (2026-08-05) reports the LLM Token index is falling and contributions from open and closed models are converging. OpenAI's recent low-priced frontier releases have sharply cut effective prices for proprietary models, while near-frontier Chinese open models GLM 5.2 and Kimi K3 are being served at higher prices; the author argues increased competition will lower costs and accelerate consumer and enterprise AI adoption.

Why it matters

As of 2026-08-05, @Silicon_Data reports the LLM Token index is continuing to decline and finds contributions from closed and open models are converging.

Key details

  • Effective prices for proprietary (closed) models fell sharply in recent weeks after OpenAI released more powerful frontier models at lower prices.
  • Effective prices for open models have risen as near-frontier Chinese models GLM 5.2 and Kimi K3 were released and served at higher prices; the author argues increased competition will ultimately lower costs and accelerate consumer and enterprise AI adoption.
Source evidence

Our LLM Token index continues to decline while the debate over open vs closed model rages on. So we decided to take a closer look at how closed and open models respectively contributed. Interestingly, we are seeing some convergence btwn them.

The effective prices paid for proprietary models have decreased sharply over the last few weeks as OpenAI releases powerful frontier models at lower prices. Open models otoh have in fact seen their effective prices increase as more powerful near-frontier Chinese models like GLM 5.2 and Kimi K3 are released and served at higher prices.

Overall, this should be unsurprising. Econ 101: competition is up and prices are down. This is good for consumer and enterprise users of AI (agents) and promotes much wider and faster AI adoption.