What changed
Ramp’s latest report reveals that AI spending has flatlined over late summer, with token spend growing only 1.5% in August and September. This marks a significant slowdown compared to the 42% growth seen in July. The data suggests that price competition and more cost-conscious customers are limiting revenue growth for AI companies, particularly as Anthropic prepares for its IPO.
What this means in practice
The slowdown is most evident among the top 1% of firms, which were previously spending around $10,000 per employee per month. These companies have seen their spending drop slightly, coming up just below their summer peaks. While median and top 10% firms show growth, it’s not enough to offset the overall decline. Ramp’s data indicates that the majority of AI use cases may not reach the high spending levels seen among the top 1%.
Limitations and availability
The slowdown is attributed to competitive pricing strategies by OpenAI and Anthropic, which have cut API prices significantly. OpenAI halved prices for GPT-6 Sol and GPT-6 Luna, while Anthropic reduced pricing for Fable 5.1 and Opus 5.5. These price cuts, along with enterprise discounts, have made AI more accessible but have also impacted revenue growth. Kharazian notes that the AI market has become a buyer’s market, with companies like Meta and Nvidia introducing cheaper models and open-source options, further pressuring prices. The report also highlights the increasing use of lightweight tools like Jev, which help reduce costs for simpler tasks.
