The most intuitive indicator of the industry is flashing a red light, the narrative of the word element economics shaking the AI boom.

The Silicon Data large language model word element expenditure index, which tracks the prices that users pay for AI word elements, has dropped by nearly 20% since its peak in May, after almost doubling since its launch in December last year. This index is one of the most direct indicators of the more than $700 billion capital spending frenzy, which has been a major driving force behind the rise in this sector.