Isn’t their operating costs depreciation of hardware and electricity? Token is just an assumed representation of it?

Charge on the input tokens, then you will naturally optimise for fewer output tokens.

Theoretically.

In reality, one sessions output tokens become the next sessions input tokens (at least if you continue the topic) so, its not as aligned as all that.

But the parent is right, when incentives are not aligned, friction will happen. Its inevitable.

NeuralWatt just does it on energy consumption.

And tokens can be metered reliably. Unlike something like "task completion".