'We need to see the pricing for AI come down': Palo Alto Networks CEO Nikesh Arora says AI is too expensive — and needs to fall 90% to become affordable (www.techradar.com)

Palo Alto Networks CEO Nikesh Arora has underscored the urgent need for a significant reduction in AI pricing to facilitate widespread enterprise adoption, suggesting prices should decrease by as much as 90%. Although he acknowledges that OpenAI's newly announced GPT-5.6 Sol model has improved efficiency by 54% in coding tasks, he argues that these advancements alone do not sufficiently address the high costs that continue to hinder uptake. Arora anticipates a more modest 20% price reduction within the next year but believes this is insufficient to unlock the full potential of AI technology. This dialogue around AI costs is particularly relevant as companies shift towards consumption-based pricing models, which can exacerbate cost concerns for users seeking to leverage AI. Arora’s call for affordable AI echoes historical patterns seen in past technological revolutions, where increased efficiency and competition naturally led to lower costs. If AI pricing can align more closely with the infinite demand Arora describes, it could significantly accelerate adoption and innovation in the AI/ML landscape, making the technology accessible to a broader range of enterprises.