/AI8h ago

Phil Chen, who previously built LLMs at OpenAI, predicts AI budgets will shift to intensive cost optimization in 2027

Next-gen models could push his token costs over $1M.

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Phil Chen@philhchen#1470inAI

2026 was about rapid expansion of AI budgets. 2027 will be about cost optimization.

My token run rate is ~$250k / yr now with 5.5 / 4.8 all on xhigh when I use API (thankfully I usually don't). With Mythos / GPT-next, this might look more like 1M+ / yr which feels irresponsible

4:06 PM · Jun 4, 2026 · 34 Views
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Phil Chen@philhchen

2026 was about rapid expansion of AI budgets. 2027 will be about cost optimization.

My token run rate is ~$250k / yr now with 5.5 / 4.8 all on xhigh when I use API (thankfully I usually don't). With Mythos / GPT-next, this might look more like 1M+ / yr which feels irresponsible

7hViews 2.4KLikes 12Bookmarks 3
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cost awareness is totally missing in current models. tokenmaxxing is what you get by default, but it’s clearly not sustainable!

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