Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Companies rein in AI spending as running costs mount

      Companies rein in AI spending as running costs mount

      27 October 2026
      Regulator hits FNB with R1-million Popia fine

      Regulator hits FNB with R1-million Popia fine

      27 October 2026
      Ethiopia leaves South Africa in the dust on electric vehicles

      Ethiopia leaves South Africa in the dust on electric vehicles

      27 October 2026
      The unregulated online market betting on South Africa's next mayors

      The unregulated online market betting on South Africa’s next mayors

      27 October 2026
      Microsoft offers voluntary severance to 60 000 staff as AI bill mounts

      Microsoft offers voluntary severance to 60 000 staff as AI bill mounts

      27 October 2026
    • World
      Anthropic's IPO stands alone

      Anthropic’s IPO stands alone

      23 October 2026
      PHP flaws trigger global scramble as hackers pounce

      PHP flaws trigger global scramble as hackers pounce

      22 October 2026
      OpenAI turns the tables on Apple in trade secrets fight

      OpenAI turns the tables on Apple in trade secrets fight

      15 October 2026
      Google's Gemini 4 Argon is finally here

      Google’s Gemini 4 Argon is finally here

      14 October 2026
      Apple's new HomeView smart home hub

      Apple takes another shot at the smart home

      13 October 2026
    • In-depth
      Why investors are souring on Netflix

      Why investors are souring on Netflix

      22 October 2026

      10 days that changed the course of AI

      21 September 2026
      Meta to the AI industry: slow down without us - Mark Zuckerberg

      Meta to the AI industry: slow down without us

      16 September 2026
      Google DeepMind CEO Demis Hassabis. Image: John Sears

      The plan to stop AI from breaking the world

      16 July 2026
      The internet has a Strait of Hormuz problem

      The internet has a Strait of Hormuz problem

      15 July 2026
    • TCS
      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      TCS+ | Vox on AI, data rules and omnichannel communication for SMEs

      26 October 2026
      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs - Réan van Niekerk, Metacom

      TCS | The Cape Town firm quietly connecting Eskom, Pep and 6 000 ATMs

      23 October 2026
      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf - Jason Oehley and Andre Den Hond

      TCS+ | Boards are underestimating the cost of a cyberattack, says Arctic Wolf

      22 October 2026
      W&W | LDV's Gerhard Moolman on electric bakkies, fleet orders and 'school fees'

      W&W | LDV’s Gerhard Moolman on electric bakkies and fleets

      9 October 2026
      TCS | Frogfoot sees bigger fibre deals coming - TechCentral Show guests Abraham van der Merwe and Shane Chorley

      TCS | Frogfoot sees bigger fibre deals coming

      8 October 2026
    • Opinion
      AI's boardroom honeymoon is over - Gary Stocks

      AI’s boardroom honeymoon is over

      22 October 2026
      Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

      Before South Africa licenses Starlink, it should look at Ukraine

      21 October 2026
      Nonkqubela Thathakahle Jordan-Dyani

      Why cybersecurity is now a national security issue for South Africa

      15 October 2026
      When a machine can choose, who does it become? Fanie van Rooyen

      When a machine can choose, who does it become?

      9 October 2026
      Let South Africans jailbreak their way to digital sovereignty - Dirk de Vos

      Let South Africans jailbreak their way to digital sovereignty

      5 October 2026
    • Company News
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CM.com
      • Contactable
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Publishared
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Vox
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech and payments
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of things
      • Investment
      • IT services
      • Lifestyle
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
      • Watts & Wheels
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » AI and machine learning » Companies rein in AI spending as running costs mount

    Companies rein in AI spending as running costs mount

    A new survey finds 89% of organisations have curbed AI use cases as running costs keep climbing.
    By Fanie van Rooyen27 October 2026
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    Get breaking news on WhatsApp

    Companies rein in AI spending as running costs mount

    Nearly nine in 10 organisations have limited or redesigned AI use cases because rising token consumption is driving up the cost of running the tools, according to a new global survey.

    The State of Enterprise AI 2026 report by data platform company Cloudera is based on a September 2026 poll of 1 500 IT leaders at director level or above. Only 19% of them continuously monitor what they spend on tokens and inference, the computing work of running a trained model.

    South Africa was not among the nine markets surveyed by Wakefield Research for Cloudera. Its Europe, Middle East and Africa (Emea) sample was drawn from Italy, Germany and the United Arab Emirates. But a TechCentral comparison of published prices shows how the cost of leading AI models has shifted for South African users over the past two years – and why bills can climb even where prices fall.

    Google’s price list shows its flagship, Gemini 4 Argon, doubling to $4/$20 from 1 December

    Almost all respondents (99%) have acted in response to higher or more volatile AI costs. Some 45% have moved a workload to another cloud, a private environment or an on-premises platform, and 24% have paused or cancelled an AI use case. Emea respondents were the most likely to say token usage and inference costs grew faster than expected (44%, against 42% in Asia-Pacific and 39% in the Americas).

    The problems are not only financial: 98% have had to pull back a deployment at least once because of failures, hallucinations or unexpected behaviour.

    Per-token prices tell a mixed story. The latest “Instant” model used in ChatGPT, offered to developers as chat-latest, lists at US$30 per million output tokens, double the $15 that OpenAI’s documentation gives for its ChatGPT-4o predecessor. GPT-6.1 Sol, the second-priciest of the models OpenAI lists as flagships, costs $10 per million output tokens, the same as the $10 OpenAI set in August 2024 for GPT-4o, then its flagship.

    October 2024 model Price (input/output) October 2026 model Price (input/output) Change in rand (output)
    ChatGPT-4o $5/$15 (R87.92/R263.77) chat-latest $5/$30 (R82.75/R496.50) +88.2%
    GPT-4o $2.50/$10 (R43.96/R175.85) GPT-6.1 Sol $2/$10 (R33.10/R165.50) –5.9%
    o1-preview $15/$60 (R263.77/R1 055.09) GPT-6 Astra $10/$50 (R165.50/R827.49) –21.6%
    Claude 3 Opus $15/$75 (R263.77/R1 318.86) Claude Fable 5.1 $10/$50 (R165.50/R827.49) –37.3%
    Claude 3.5 Sonnet $3/$15 (R52.75/R263.77) Claude Sonnet 5.5 $2/$10 (R33.10/R165.50) –37.3%

    Standard API list prices per million tokens. Rand at R17.58/$ (October 2024 average) and R16.55/$ (1-23 October 2026 average), from US Federal Reserve data. ChatGPT-4o and o1-preview prices are from OpenAI’s documentation for those retired models. Gemini is left out because Google’s September 2024 price-cut announcement gave percentages only

    Some 2024 models cost more than today’s top tier. OpenAI’s o1-preview reasoning model listed at 60 per million output tokens and [Claude 3 Opus](https://www.anthropic.com/news/claude-3-family) at $75. GPT-6 Astra, the priciest on OpenAI’s flagship list, costs $50, as does Claude Fable 5.1, which shares the top of Anthropic’s price list with Claude Mythos 5.1. Anthropic’s Sonnet line is 37% cheaper in rand. A firmer rand – an average of R16.55/ so far this month, against an average of R17.58/$ in October 2024 – has taken almost 6% off dollar-priced bills.

    Why bills climb anyway

    List prices tell only part of the story. OpenAI, Anthropic and Google all bill the “reasoning” or “thinking” tokens their models generate as output. And Anthropic says the tokeniser – the component that splits text into tokens – in Claude 4.7 and later models produces about 30% more tokens for the same text. Allowing for that, the rand saving on Sonnet narrows to about 18%.

    Some prices are rising outright. Google’s price list shows its flagship, Gemini 4 Argon, doubling to $4/$20 from 1 December.

    The bigger driver is volume. Gartner has warned that AI coding costs could approach or exceed developer salaries within two years as token consumption surges and vendors switch to usage-based billing.

    Standard Bank told TechCentral that its cloud costs rose 37% in the six months to June. The bank listed expanding its AI capabilities among several drivers of higher software and cloud costs but did not quantify AI’s share, and its banking technology costs rose only 2% overall.  – © 2026 NewsCentral Media

    Add TechCentral as a preferred source on GoogleFollow TechCentral on Google NewsGet breaking news on WhatsApp


    Anthropic Cloudera Gartner Google OpenAI Standard Bank Wakefield Research
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleRegulator hits FNB with R1-million Popia fine

    Related Posts

    Governing AI in African markets: from principles to practice

    Governing AI in African markets: from principles to practice

    27 October 2026
    Anthropic's IPO filing lays bare the cost of the AI race - Dario Amodei

    Anthropic’s IPO filing lays bare the cost of the AI race

    26 October 2026
    Pick n Pay's online sales jump while store sales barely grow

    Pick n Pay’s online sales jump while store sales barely grow

    26 October 2026
    Company News
    Governing AI in African markets: from principles to practice

    Governing AI in African markets: from principles to practice

    27 October 2026
    Telviva earns ISO/IEC 27001:2022 certification for information security - Antony Russell

    Telviva earns ISO/IEC 27001:2022 certification for information security

    27 October 2026

    Paratus connects Tanzania to Africa and beyond with new Dar es Salaam PoP

    26 October 2026
    Opinion
    AI's boardroom honeymoon is over - Gary Stocks

    AI’s boardroom honeymoon is over

    22 October 2026
    Before South Africa licenses Starlink, it should look at Ukraine - Duncan McLeod

    Before South Africa licenses Starlink, it should look at Ukraine

    21 October 2026
    Nonkqubela Thathakahle Jordan-Dyani

    Why cybersecurity is now a national security issue for South Africa

    15 October 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Companies rein in AI spending as running costs mount

    Companies rein in AI spending as running costs mount

    27 October 2026
    Regulator hits FNB with R1-million Popia fine

    Regulator hits FNB with R1-million Popia fine

    27 October 2026
    Governing AI in African markets: from principles to practice

    Governing AI in African markets: from principles to practice

    27 October 2026
    Ethiopia leaves South Africa in the dust on electric vehicles

    Ethiopia leaves South Africa in the dust on electric vehicles

    27 October 2026
    © 2009 - 2026 NewsCentral Media
    Built and maintained by Chronon
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    🇿🇦 Sign up to the TechCentral newsletter