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OpenAI CEO Sam Altman calls AI tokens a fake business unit

Altman told Stripe cofounder John Collison that customers prefer token-based pricing despite the units being artificially increased.

OpenAI CEO Sam Altman has described AI tokens as a "fake form of a business" during a conversation with Stripe cofounder John Collison on the Cheeky Pint and Stripe podcast.

Altman questioned how AI companies charge customers for using models, stating that tokens are not a good unit from a business value point of view.

He noted that customers prefer knowing the number of tokens they are paying for, even if that number is artificially increased, rather than receiving bills based on the work an AI model completes.

Altman said customers expressed discomfort with pricing models that lack a clear unit, fearing they might be overcharged over the long term without understanding why.

This perspective contrasts with comments made earlier this year by Nvidia CEO Jensen Huang, who suggested offering AI tokens to engineers on top of their base pay.

Huang stated that he would provide tokens to engineers because he believes those with access to tokens will be more productive.

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