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Chronicles

The story behind the story

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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

Discussion

  • @jyarow Jay Yarow on x
    “One CTO told Axios that employees were using AI models to check the weather.”
  • @mikeisaac Rat King on x
    people in charge of corporate accounting realize that “tokenmaxxing” actually very stupid to use as employee incentive incredible [image]
  • @sdianahu Diana on x
    tokenmaxxing isn't “spend more on tokens” it's the opposite tokenmaxxing = picking the right stat to max, then making everything else as cheap as physics allows the drop in intelligence cost curve is your friend! rather taste is the scarce input
  • @madisonmills22 Madison Mills on x
    Corporate America enters its AI reckoning phase as IT bills keep rising and consumer sentiment nosedives. My latest, which includes an account from a CFO fretting over a half a *billion* dollar accidental AI bill: https://www.axios.com/...
  • @ddemaree David Demaree on x
    Goodhart's Law: When a measure becomes a target, it ceases to be a good measure.
  • @edzitron Ed Zitron on x
    “So you're a software company” “That's right Dave” “and you spent $500 million on AI tokens in a month?” “Yep” “and you're using AI to...replace employees?” “that's right” “that's more than your entire annual SG&A, isn't it?” “uhuh.” [image]
  • @tbpn @tbpn on x
    .@altcap surveyed 300 companies and found that even those aggressively optimizing their Claude usage still plan on growing their AI spend by a lot. “Anthropic and OpenAI will continue to grow right through the optimization, because the growth curve on penetration is so steep.” [v…
  • @garrytan Garry Tan on x
    Tokenmaxxing done right is outcomemaxxing
  • @cszhu Christina on x
    tokenmaxxing is out, now tokenminning is in
  • @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.
  • @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
  • @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:
  • @magnushambleton Magnus on x
    Show them the incentives and Amazon will show you the consequences
  • @zackkanter Zack Kanter on x
    lol. the Anthropic CFO was on @InvestLikeBest two weeks ago and said they have an internal leaderboard. [image]
  • @karankendre Karan on x
    CEO waking up to a $500M Claude API bill [video]
  • @turnernovak Turner Novak on x
    Uber employees using $100k of Claude tokens to respond to an email [video]
  • @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
  • Andrei Lopatenko Andrei Lopatenko on linkedin
    This reminds me of an old funny story from around 2008 at Google.  Back then, MapReduce was the default hammer for almost every large-scale problem. …
  • @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...
  • @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]
  • @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]
  • @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]
  • @wowbaggert @wowbaggert on bluesky
    Who could have guessed that incentivizing “token usage” instead of “engineering outcomes” would be bad and stupid? [embedded post]
  • @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]
  • @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]
  • r/BetterOffline r on reddit
    Corporate America Is Starting to Ration AI as Cost Skyrockets
  • r/TechnologyThread r on reddit
    Mystery company accidentally blew $500 million on Claude AI in a single month — failed to put usage limit on licenses for employees