As ‘tokenmaxxing’ and AI costs take off, companies turn to private token factories: Dell

Cost-cutting aside, having such machines on-premise is better for data security, firms realise[SINGAPORE] While companies encourage the use of artificial intelligence, they are also grappling with the rising...

As ‘tokenmaxxing’ and AI costs take off, companies turn to private token factories: Dell. Cost-cutting aside, having such machines on-premise is better for data security, firms realise [SINGAPORE] While companies encourage the use of artificial intelligence, they are also grappling with the rising costs of using tokens, the basic building blocks of the language understood by AI models. In China alone, daily token consumption exceeded 140 trillion in March 2026, up from just 100 billion at the start of 2024. Globally, token consumption is only going to get higher. Consumers and enterprises are expected to use 120 quadrillion tokens each month between 2026 and 2030, Goldman Sachs said in a report. Tokens are what AI models use to understand the inputs – the questions asked or tasks they have been assigned to carry out – and to generate the...