A KPMG survey of 2,145 senior leaders finds nearly a third struggle to understand and control AI operating costs, driven by the industry's move to usage-based billing from flat-rate subscriptions.
businessMonday, July 6, 2026
AI bills baffle C-suite as pricing shifts
Corporate leaders are struggling to understand AI costs as providers move to usage-based pricing. Meanwhile, Microsoft admits its biggest AI mistake and pivots to model flexibility, and Japan bets big on Micron's chip expansion.
AI pricing pains
The shift from flat-rate subscriptions to usage-based billing is creating headaches for enterprises.
Microsoft launches a $2.5 billion AI adoption business that helps enterprises deploy and swap between multiple AI models, signaling a strategic shift away from locking into a single provider like OpenAI.
Chips and energy shifts
Big money is flowing into hardware and energy, from Japan's chip subsidies to natural gas's rise.
Micron breaks ground on a ¥1.5 trillion ($9.3 billion) chip plant expansion in Hiroshima, with Japan providing ¥500 billion ($3.1 billion) in subsidies, an unusually large public contribution.
Natural gas is closing in on petroleum as the dominant U.S. fuel source for the first time since 1950, with EIA data showing a razor-thin margin in 2025.
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