Spending is exploding (CapEx records, big acquisitions like Cursor).
Pricing power is cracking (token costs falling, Microsoft looking at cheaper Chinese models).
Competition is heating up fast from open-source and lower-cost models.
Big players (Microsoft, SpaceX/Elon) are making aggressive moves because the economics of frontier AI are getting tough.
⚠️Is the AI pricing bubble starting to burst?
The LLM Token Expenditure Index has fallen to $1.67, the lowest since mid-April, down -20% from its May peak.
This index tracks how much companies are willing to pay per million tokens across AI models of different capabilities,… pic.twitter.com/OOPSPgpME7
— Global Markets Investor (@GlobalMktObserv) June 16, 2026
BREAKING: Microsoft exploring DeepSeek over OpenAI and Anthropic as Copilot Cowork moves to usage-based pricing
“We have users who do hundreds of tasks a week… the consequence is the costs can go very high…”
Jevons paradox pic.twitter.com/wanKWtU7y5
— NIK (@ns123abc) June 16, 2026
Technology CapEx spending is exploding:
The CapEx-to-Sales ratio of developed market tech firms is up to a record 11.5%.
Over the last 2 years, this percentage has risen +4 points, far outpacing any other 2-year increase in history.
To put this into perspective, the previous… pic.twitter.com/PXSFpjZOaR
— The Kobeissi Letter (@KobeissiLetter) June 16, 2026
$SPCX ACQUIRES CURSOR FOR $60B.
Months ago, Jensen Huang $NVDA said:
"My favorite enterprise AI service is Cursor. Cursor is an AI coder. Every one of our engineers is now assisted by Cursor, and our productivity has gone up incredibly."
Elon is playing to win. pic.twitter.com/3GMogfJ28Z
— Daniel (@danielisdizzy) June 16, 2026