Ramp data suggests AI use is rising while spending levels off

In short: Companies are using more AI, but Ramp data shows their total spending stopped growing as quickly.

What's going on

Ramp, a company that tracks business spending, published an AI index that points to a slowdown in how much companies pay for AI services. The report says “token” volumes rose in late summer, but token spending only grew 1.5% across August and September. A token is a small unit of text that AI systems count, like words and pieces of words, and it is often how usage is measured and billed.

That is a big shift from July, when token spending grew 42% compared to the previous month. Ramp’s lead economist, Ara Kharazian, told TechCrunch that most AI spending comes from a small group of venture-backed tech companies. He said the top 1% of spenders dipped slightly in August and September, and that alone can flatten overall revenue, even if more AI is being used.

The report points to a few reasons. One is lower prices. OpenAI cut some API prices in half in September, and Anthropic also reduced prices and offered discounts for large customers. Another reason is that companies are getting better at controlling costs, like setting budgets for employees and steering work to cheaper models (like choosing a basic option instead of a premium one).

What to watch

This matters because Anthropic is preparing for an IPO, which is when a company starts selling shares to the public. If AI usage keeps growing but spending stays flat, investors may question how fast AI companies can grow revenue, especially outside of big-spending industries like software and finance.

Source: TechCrunch AI