MechanismArticle

Building token machines is a likely path to value, so labs that were expected to consolidate are instead finding value in continued operation.

With high demand for tokens expected to grow, labs realize that building token-production infrastructure is a viable value path, contrary to consolidation predictions. ✦ AI generated

The author of 'Latest open artifacts (#23)...' · Interconnects · 2026-08-02 · original ↗

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All of these labs we thought would need to consolidate are realizing that building token machines is a likely path to value, and more companies will identify that source of value over time.

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Around this claim

Evidence · 1

Token generation — especially reasoning tokens — is growing at multiple exponentials simultaneously, and these tokens are now profitable, proving their value.Jensen Huang · No Priors · conf 80%

In practice · 2

Thinking Machines has become a leading open-weight model company in the USA, with its open model finetuning service generating hundreds of millions in revenue per year.The author of 'Latest open artifacts (#23)...' · Interconnects · conf 85%LTX made a deliberate strategic bet on an extremely compressive latent space with a variable token rate to compensate for having far less compute than big labs, even though this created serious technical problems other companies didn't have to solve.Zeve Farman · The Cognitive Revolution · conf 85%

This moment responds to

explains mechanism → Despite predictions of consolidation, more companies are training strong models and an increasing number of organizations are releasing these models openly.The author of 'Latest open artifacts (#23)...' · Interconnects supports → A safer bet than consolidation is predicting continued adoption of open models, and the ecosystem is entering a decisive era over how far open models can go.The author of 'Latest open artifacts (#23)...' · Interconnects