Palo Alto Networks CEO Arora says AI tools too expensive
Nikesh Arora, CEO of Palo Alto Networks, thinks artificial intelligence (AI) tools are still too expensive, even after OpenAI's new GPT-5.6 Sol model made agentic coding tasks 54% more token-efficient.
He called this progress a "good start," but says real change will only come when AI is much more affordable for businesses.
Nikesh Arora sets 20%/90% token targets
Arora's goal? Cut token costs to 20% within the next 12 months and by a huge 90% by the following year.
He also pointed out that open-weight models (basically, less pricey alternatives) are getting more popular as companies look to save money, something Palantir's CEO agrees with.
On the people side, Arora noted that most employees lack AI skills, so at Palo Alto Networks he hires fresh talent through hackathons instead of big layoffs, hoping for a smoother shift into the AI era.