Inside AI Tokenomics: How to Profitably Turn Tokens Into Business Value | NVIDIA AI Podcast Ep. 299

Not all tokens are created equal. And there is a way to look at token value. There are two key factors that impact token value. One is the intelligence embedded in the token or how much intelligence does the token carry, and the other is how fast does it align. Welcome to the NVIDIA AI podcast. I'm Noah Kravitz. I'm here with Sruti Kopakkar. Sruthi is a member of the accelerated computing team here at NVIDIA, and she focuses on inference. And we're here to talk about tokenomics. As data centers become AI factories and produce intelligence for the new industrial revolution? This word, tokenomics, has been floated about. It's a useful term, but maybe we can break it down with your help, Shruti, so that it's really something that business leaders can understand and take into practice. Yes. Absolutely. Well, first of all, thanks a lot for having me, Noah. Thank you, Joel. I am very excited to dig into the economics of AI or tokenomics. And as you said, it is a term that gets used quite a bit, and I welcome the opportunity to help define it, so to speak. So the way to think about tokenomics is it's about how tokens are valued, supplied, consumed, and monetized. And what that essentially maps to is token utility, which is all about token value, token supply, and this is where your AI infrastructure decisions are. Right? Thinking about what infrastructure to invest in that will maximize your token output while minimizing cost. Then there's token demand. This is where customers and organizations think through what is their number of users, how many use cases, what types of use cases. So really sort of mapping out the volume and velocity of the tokens that they need. And then finally, there's token monetization, which is taking the tokens and turning it into business value. So those are sort of the four pillars for tokenomics. And it's super important to understand all four of those and how they relate to each other to be able to deploy AI successfully. So let's start at the top then with, utility or value. How do you define the value of a token? Are all the tokens worth the same? Do they have differing values? Is there a better way to look at it? How do you approach that? That's a really great question and you're right actually that not all tokens are created equal. And there is a way to look at token value. There are two key factors that impact token value. One is the intelligence embedded in the token or how much intelligence does the token carry. And the other is how fast does it arrive, which is essentially the interactivity. So to unpack that a little bit, the intelligence of the token is dependent on the model that produced the token. Mhmm. So more complex, more intelligent models will produce tokens that in in general have much more Higher than Yeah. …