Falling AI Inference Costs Could Unlock Massive New Demand Despite Recent Drawdown

The recent drawdown in AI stocks presents a buying opportunity as the market may be underestimating how much new demand cheaper artificial intelligence can unlock. Much like a 90% drop in gasoline prices would spur consumers to take more trips and businesses to open previously uneconomical routes—rather than simply driving the same distance and pocketing the savings—falling AI costs are expected to expand overall usage rather than shrink spending.
As inference costs decline, hundreds of additional workflows become financially viable to automate, meaning total consumption of intelligence could grow significantly faster than the price per token falls.