THE VALUE & PRICING BLOG

The latest stories, blog articles, and pricing news from the Ibbaka team

Steven Forth Steven Forth

Pricing thought: OpenAI will price reasoning tokens in o1

OpenAI's o1 models are getting a lot of attention. They are a phase change for how we work with generativeAI. OpenAI has also shared how it will approach pricing of this first version of reasoning models. Reasoning tokens. What are the implications for generative AI pricing generally?

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Steven Forth Steven Forth

Pricing patterns for generative AI

Most companies monetizing generative AI are using hybrid pricing models where they combine more than one pricing metric. You can see that in the survey we are running to prepare for the Sept. 19 roundtable on monetizing generative AI. What metrics tend to be used together? We ran the data through a Leiden algorithm to find the clusters.

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Steven Forth Steven Forth

Generative Pricing

Applications built on generative AI platforms have emerging properties and will need a new approach to pricing. Software applications are becoming composable, conversational and adaptive. Pricing needs to respond. A new approach to pricing is needed. Let’s call it generative pricing.

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Steven Forth Steven Forth

AI pricing metrics showing up in multiple SaaS verticals

Certain pricing metrics are associated with AI applications. In this year’s PeakSpan Ibbaka Survey of NRR we are seeing pricing metrics associated with AI showing up in multiple verticals, a significant change from last ear.

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Gregory Ronczewski Gregory Ronczewski

Core Concepts: Usage-Based Pricing

Usage-Based Pricing uses a measure of usage as a pricing metric. It is often combined with other pricing metrics to create a hybrid pricing model. Research has found that companies who include a usage-based metric grow faster. A well designed usage-based pricing metric connects price to value.

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