Cheaper AI tokens are driving more demand, and that's Jensen Huang's best-case scenario

Market data indicates that falling prices for AI tokens are fueling a surge in demand that outpaces the decline in operational costs. This trend, known as the Jevons paradox, maintains high rental rates for H100 GPUs despite cheaper individual processing units. For Nvidia and cloud providers, this dynamic currently sustains hardware demand, though the industry remains exposed to financial risks should this rapid consumption growth eventually level off.