That trend will continue.
I figure there are 6 order of magnitude events that could happen in the next decade to lower token prices:
- more specialized / better chips
- IC technology: smaller feature size, higher clocks, etc.
- more efficient algorithms
- solar power is getting cheaper at an order of magnitude per decade, batteries even faster.
- pricing pressure from open source models
- breaking of the Nvidia monopoly and it's 75% gross profit margin
Maybe all 6 won't happen, but certainly a 1000x reduction in price in the next decade seems highly likely. Jevon's paradox says that the 1000x reduction in price will likely result in more spend on AI, not less.
At work (we're a medium sized manufacturing firm), we bought our own inference server for $107k and run Kimi 2.8 for nearly all of our use cases (and dropped our cloud AI spend to $0).
And, oh yeah, our local server is much faster and more available for our 30 or so local users than the SaaS services. Win-win.