What Is AI Token Cost and Why It Matters

AI token cost is the price you pay per token when calling a generative AI model’s API—typically charged per million tokens, with rates varying by provider, model tier, and whether you’re processing input or generating output. With AI spending forecast to total $2.59 trillion in 2026, these costs can grow unpredictably for teams running AI workloads at scale, often lacking the visibility infrastructure that traditional cloud spend has.