NVIDIA Declares Market Offensive on AI Service 'Cost Competitiveness'

Global AI giant NVIDIA emphasized that while its AI systems may appear expensive, they actually benefit customers by producing 'tokens' – the units of data processed by AI – at the lowest cost.

This indicates that the focus of AI technology competition has shifted beyond the price of high-performance hardware to a 'service cost' battle, centered on how efficiently and affordably AI services can be delivered. The competitive paradigm in the AI industry is moving away from a simple model performance race towards reducing service operational costs, as even excellent performance can be a hurdle to commercialization if operational expenses are unaffordable. Consequently, big tech companies are competing not just to secure high-performance GPUs, but to preemptively establish low service costs in the long run.

This is similar to past cases in semiconductors and manufacturing where companies that first adopted advanced production facilities dominated the market. In the future AI market, it will be less about who built the smarter model and more about who can achieve lower token costs and supply AI in large volumes affordably.