AI Token Costs and MD&A Disclosure

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The fast-changing economics of artificial intelligence (AI) use by public companies will require public companies’ disclosure obligations to change with them. AI model providers, including Anthropic, OpenAI, Microsoft, and Salesforce, are moving away from flat-fee, unlimited-access subscription models toward usage-based pricing measured in tokens. A “token” is the basic unit of AI computing. The result is a new category of operating cost that may be volatile, difficult to predict, and already…
By: Troutman Pepper Locke
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