Box Launches Innovative AI Pricing Model to Address High Costs of Running Large Language Models (LLMs)

As generative AI increasingly integrates into enterprise software, companies are grappling with the challenge of fairly pricing these innovations to cover the costs associated with utilizing foundational large language models like OpenAI’s. Last May, Box launched Box AI, introducing generative AI capabilities through a strategic partnership with OpenAI. At BoxWorks, the company’s annual customer conference, they unveiled a novel pricing strategy for their AI features.

Box is implementing a credit system that allows each user to receive 20 credits each month, applicable to a variety of AI tasks totaling up to 20 events. “Regardless of whether you’re asking a document-related question, generating content in Box Notes, or querying a hub, you receive 20 queries per month,” stated CEO Aaron Levie.

What happens if a user exceeds this limit? They can access a shared pool of 2,000 additional credits that are collectively available to the entire organization. This arrangement supports power users in utilizing AI features without incurring extra costs for the company.

For organizations that heavily use AI functionalities, additional blocks of credits can be purchased. “The organization has a communal pool of 2,000 AI credits for users who exceed their limit. Once that pool is depleted, they can buy extra blocks of AI credits,” Levie explained. The team is still finalizing the details of this system, envisioning packages of 10,000 credits for purchase, according to Levie.

The pricing model was developed after engaging with customers and gaining insights into their usage patterns of Box’s AI tools. “We created a model designed for the average user to easily get started with AI, while also accommodating our more advanced power users, ensuring they pay based on their higher usage,” he added.

Levie emphasized the importance of establishing a fair pricing structure while recognizing the significant costs associated with operating generative AI models. He believes this new pricing framework strikes an effective balance.

Additionally, Box announced that its first two AI features—content creation in Box Notes and document-specific inquiries—will enter beta testing next month for customers subscribed to the Enterprise Plus plan. These users will be operating under the newly introduced pricing model as they begin to utilize these features.