AI Pulse · Business Models & Winners
The play
Update forecasts and client quotes for January's pricing increase, or lock usage and contracts before December ends.
Google has launched Gemini 3.8 Flash at the same API price as its predecessor, $0.75 per million input tokens and $3.75 per million output tokens. That rate is only introductory pricing through December 31. From January 1, 2027, the standard price moves to $1.50 for input and $7.50 for output tokens per million.
For a business using the model internally, this is manageable if you know it is coming. For an agency, software company, or consultancy quoting fixed-price AI work, it matters much more. A workflow that costs $500 a month to run today could cost roughly twice that after the introductory period, assuming usage stays the same. That can erase margin quickly if your client contract locks in a price for 12 months.
The practical move is simple. Separate model usage costs from your service fee where possible, or build a pricing review clause into longer client agreements. Also check whether your AI tools are using Gemini behind the scenes, since the API cost may reach you through a vendor rather than a direct Google bill.
This is the kind of thing we build into an AI command centre, tracking the operational costs behind AI workflows so pricing changes do not become a surprise in next quarter’s numbers.
Free Resource
Put what you just read to work
The free 32-page Working With Claude guide: the full ecosystem, Claude Code, and how to roll it out across a business.
Your guide is ready
Check your downloads folder. If it did not open automatically, use the button below.
Download the GuideWant this working inside your business?
See what's possibleFree daily email
Get this every morning.
This brief is one item from today's AI Pulse, the short daily read we run for ourselves on what is actually happening in AI. Subscribe free and it lands in your inbox each morning.
Free daily email
Subscribe to the daily AI Pulse
One short read every morning on what is actually happening in AI. Free.
You are in
Your first AI Pulse lands tomorrow morning. Keep an eye on your inbox.