After hitting their annual AI budget in months or seeing their AI bills double or triple due to “tokenmaxxing”, some companies are rationing or tracking AI use
Executives are scrambling to track returns on AI investments as the bill for massive computing needs comes due
Wall Street Journal Bradley Olson
Related Coverage
- Amazon deletes devs' tokenmaxxing leaderboard to minimize costs CIO.com · Maxwell Cooter
- Amazon says it shut down a token leaderboard: 'Don't use AI just to use AI' Business Insider · Brent D. Griffiths
- Amazon bins an internal AI leaderboard for its Kiro employees, because they were burning through too many costly tokens PC Gamer · Nick Evanson
- Tokenmaxxing is over. That's because it never measured what really counts to see ROI from AI Fortune · Jeremy Kahn
- Mystery company accidentally blew $500 million on Claude AI in a single month — failed to put usage limit on licenses for employees Tom's Hardware · Stephen Warwick
- Amazon kills internal AI leaderboard after employees gamed it with pointless tasks The Decoder · Maximilian Schreiner
- Amazon comes to its senses and realizes tokenmaxxing is dumb. The shut company has shut down an internal leaderboard that tracked employees' use of AI tools after workers tried to boost their scores with unnecessary activity that increased the company's computing costs. — Goodhart's law strikes again. … @carnage4life@mas.to · Dare Obasanjo
- The Chatbots and Agents Are Going To Merge Big Technology · Alex Kantrowitz
- Company Accidentally Blows $500,000,000 On Claude AI In One Month The Daily Caller · Rebeka Zeljko
- CEOs go bargain hunting for AI Axios · Madison Mills
- View / Mustafa Suleyman's case against open-source AI shortcuts Semafor · Reed Albergotti
- Sources: Amazon has shut down an internal leaderboard that tracked employees' use of AI tools after workers tried to boost their scores with needless tasks Financial Times · Rafe Rosner-Uddin
- AI Costs Are Forcing Big Companies to Put Limits on Workers: Report International Business Times · Matias Civita
- Amazon Is the Latest Tech Giant to Face the Consequences of AI ‘Tokenmaxxing’ CNET · Joe Hindy
Discussion
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@turnernovak
Turner Novak
on x
Uber employees using $100k of Claude tokens to respond to an email [video]
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@karankendre
Karan
on x
CEO waking up to a $500M Claude API bill [video]
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@wowbaggert
@wowbaggert
on bluesky
Who could have guessed that incentivizing “token usage” instead of “engineering outcomes” would be bad and stupid? [embedded post]
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@stevenjcbuckley
Dr. Steven Buckley
on bluesky
The industry was subsidised for a long time and now companies are now starting to realise that the very little gains that AI brings are not worth the actual cost of using them. [embedded post]
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@carlquintanilla
Carl Quintanilla
on bluesky
“.. pumping the brakes in a way that could complicate AI's triumphal march across the economy.” — @wsj.com — www.wsj.com/tech/ai/corp... [image]
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@altryne
Alex Volkov
on x
This is how you “lose” 500M on Claude Inference
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@garymarcus
@garymarcus
on x
tokenmaxxing is officially over
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@gergelyorosz
Gergely Orosz
on x
A month and a half ago I shared how tokenmaxxing is spreading as a weird, new trend, and all it does is generate a massive company bill. Amazon learning what was obvious even back then. Encouraging tokenmaxxing is very expensive and honestly pretty stupid [image]
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@packym
Packy McCormick
on x
I can't believe they're shutting off the tokenmaxxing leaderboards the exact same day that Anthropic announces its $65 billion round. [image]
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@timduy
Tim Duy
on x
I just can't see how firms decided to reward employees for maximizing use of inputs rather than maximizing output.
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@appyg99
Apoorva Govind
on x
Who could have predicted that! It was impossible to think people would game the system. Goodhart's law is for chumps.
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@gergelyorosz
Gergely Orosz
on x
I can now probably say this: Two months ago, inside Anthropic someone suggested building a token leaderboard. A heated internal debate followed and the decision was made to *never* ever do it... because several people inside Anthropic simply thought ahead of the consequences
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@quinnypig
Corey Quinn
on x
Local company discovers “Frugality” leadership principle incompatible with asking employees to compete at incinerating money.
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@pivovarit
Grzegorz Piwowarek
on x
“When a measure becomes a target, it ceases to be a good measure” Goodhart's law
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@austen
Austen Allred
on x
Im calling BS on this story. 1. That would be 100,000 employees spending $5k/mo each or 10,000 employees averaging $50k/mo each. No way. 2. Anthropic isn't going to float that much on an invoice without checking in 3. The source being a consultant talking about a client = lie [im…
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@drewpusateri
@drewpusateri
on x
just throwing it out there, but maybe both the tokenmaxing is the new religion *and* the tokenmaxing is dead discourse are overblown and the truth is about optimizing usage the same way you would virtually all other things?
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@olearycrew
Brendan O'Leary
on x
Tokenmaxxing Gone but not forgotten. 🪦 [image]
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@chrismunns
Chris Munns
on x
Amzn employees gamifying metrics?? Isn't there a PTA for that? [image]
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@mardehaym
Mark Ajzenstadt
on x
None of this is satire. → A company spent $500,000,000 on Claude in one month because nobody set usage limits → Uber ran leaderboards ranking engineers by how much AI they used, not what they shipped → Uber burned their entire 2026 budget by April. Their COO said he can't
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@irishoutsider
@irishoutsider
on bluesky
Once again reminded of the time the Groupon sales floor figured out how to smash their talk time targets by calling the toll free Hall and Oates hotline at lunchtime. [embedded post]
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@harrymccracken.com
Harry McCracken
on bluesky
Eventually, the world will figure out that AI use should be all about quality, not quantity. I'm surprised it's not obvious to everyone already. https://www.ft.com/content/b1a62a7f- 6df5-4c90-94ce-64ce9c9961b6
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@neillewisjr
Neil Lewis, Jr
on bluesky
Goodhart's Law strikes again: — When a measure becomes a target, it ceases to be a good measure. [embedded post]
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r/singularity
r
on reddit
Amazon scraps AI leaderboard to stop workers chasing usage scores | Senior executive Dave Treadwell tells staff 'don't use AI just for the sake of using AI' as costs rise
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r/BetterOffline
r
on reddit
Corporate America Is Starting to Ration AI as Cost Skyrockets
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r/technology
r
on reddit
Amazon scraps AI leaderboard to stop workers boosting usage scores — Senior executive tells staff 'don't use AI just for the sake of using AI' as computing costs rise
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r/theprimeagen
r
on reddit
Amazon scraps AI leaderboard to stop workers chasing usage scores
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r/business
r
on reddit
Exclusive: Amazon scraps AI leaderboard to stop workers chasing usage scores
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@ddemaree
David Demaree
on x
Goodhart's Law: When a measure becomes a target, it ceases to be a good measure.
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@magnushambleton
Magnus
on x
Show them the incentives and Amazon will show you the consequences
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@coreyward
Corey Ward
on x
Seems like everybody has forgotten about Goodhart's Law: once a metric becomes a target, it stops being a good metric.
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@madisonmills22
Madison Mills
on x
Multiple executives tell me they're looking to decrease their AI expenses just as three major AI IPOs are on the horizon. My latest:
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@zackkanter
Zack Kanter
on x
lol. the Anthropic CFO was on @InvestLikeBest two weeks ago and said they have an internal leaderboard. [image]
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@melodyskim
Melody Kim
on x
this always seemed dumb to me. if we were seeing models gaming the system to pass evals, what makes us think humans would not be doing this? the real “eval” here is highest output to lowest token usage. if teams are using this to increase AI adoption, might i recommend
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@edzitron.com
Ed Zitron
on bluesky
Wall Street Journal article today out about companies cutting AI costs and guess what WE'RE IN THE EARLY INNINGS — wsj.com/tech/ai/corp... [embedded post]
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@chardr
Charles R
on bluesky
Company's will realize pretty quickly that when they have to pay full price the tech isn't worth the cost. [embedded post]
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@daniloc.xyz
@daniloc.xyz
on bluesky
it's a bit like rewarding people for “most lines of code produced.” Gates famously compared this to “making the heaviest airplane.” the real game is efficiency: making the most impact of the fewest tokens [embedded post]
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Sarah Hoffman
Sarah Hoffman
on linkedin
Amazon just shut down an internal leaderboard that scored developers on their AI activity. Employees, unsurprisingly …
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@jessefelder.com
Jesse Felder
on bluesky
‘Corporate leaders are scrambling to bring down expenses by finding ways to ration AI use in their organizations, steer workers toward cheaper, homegrown tools and help them hone their skills to improve returns.’ www.wsj.com/tech/ai/corp...
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@augustiner_h
Augusto
on x
every cycle we go through the same learnings dont we
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@bendee983
Ben Dickson
on x
That was a really expensive way to learn tokenmaxxing is dumb. Maximizing LLM usage just for the sake of flexing your use of AI is a recipe for disaster.
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@thejasonchan
Jason Chan
on x
Classic “show me the incentive and I'll show you the outcome” When mgmt made this decision they should have just taken it one step further and thought: 1. what would I do if I had this rule imposed upon me 2. what would a smart person who is trying to take advantage of this
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@nbgreene14
@nbgreene14
on x
This is exactly why “AI usage” is a terrible KPI. The incentive shouldn't be how many prompts an employee runs. It should be whether the AI-powered workflow they create gets adopted by others and actually saves time, increases output, or improves quality. Otherwise you just get
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Sophie Hurcombe
Sophie Hurcombe
on linkedin
Tokenmaxxing failed because it was just performance management with a worse metric. — Replace “tokens used” with “hours worked” or …
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Peter Merholz
Peter Merholz
on linkedin
What the heck has happened to Amazon? For all their faults, they were a standard-bearer of a responsibility culture. …
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@marygillis
Mary Gillis
on bluesky
Who would've thought encouraging employees to use an expensive product as much as possible with no oversight over than measuring how much they're using it could possibly backfire?
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@dgschell
@dgschell
on bluesky
Every day it seems we're getting articles about the real costs of AI. If AI is to be reined in, it won't be because of the job insecurity its causing or environmental harm, but because it's proving too costly compared to human labor.
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@cszhu
Christina
on x
tokenmaxxing is out, now tokenminning is in