Citrini Research suggests that the AI market is poised for a major shift due to increasing costs associated with AI usage, a phenomenon they term 'tokenomics'. The firm emphasizes that the era of free AI is coming to an end, with companies now focusing on 'tokenmaxxing' to optimize productivity through AI tools. This shift is driven by a surge in demand for tokens, which are essential for processing tasks in large language models. As costs rise, companies will need to adopt more efficient strategies, potentially leading to a significant transition towards 'edge AI'. This model allows AI to operate on or near devices, minimizing dependence on centralized cloud computing. Citrini believes this evolution will create a new class of AI winners and present various investment opportunities in distributed inference, hardware, and the necessary software to manage these systems. Overall, the firm predicts that the AI landscape will evolve towards a more cost-conscious phase, emphasizing efficiency and local processing capabilities.