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Palo Alto CEO Demands 90% Token Cut, OpenAI Up 54%

7/10/2026

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Story summary
  • Nikesh Arora, CEO of Palo Alto Networks, warned token costs must fall to 20% of current levels within 12 months and to a 90% reduction by the following year.
  • Sam Altman, CEO of OpenAI, told CNBC that the frontier lab’s latest model is 54% more token-efficient for agentic coding.
  • Nikesh Arora said the 54% token-efficiency gain is a good start, with rising token prices straining AI budgets and blocking enterprises.