SynopsisCompanies are facing massive AI bills, with one firm reportedly spending $500 million in a month on Claude AI due to unchecked usage. Several global firms are now cutting back on AI spending, changing pricing, or rehiring engineers to manage ballooning costs, as AI currently costs more than it saves.IANSA firm spent $500 million in a single month on Anthropic’s Claude AI because it failed to set usage limits in what may rank as one of the costliest bills in the space. Thousands of employees at the firm ran complex tasks on Claude, and the meter kept running nonstop, an IT consultant told Axios. In another instance, Microsoft reportedly cancelled Claude Code licences due to growing token bills. Uber said it exhausted its 2026 AI budget in just four months. Companies are drowning in token bills due to heavy spending on AI tools without clear returns, success metrics, or guardrails. Seven global firms, including Uber, Microsoft, Commonwealth Bank of Australia, GitHub, Cursor, Klarna and Duolingo, have reportedly either pulled back on AI spending, changed pricing tiers or even rehired engineers to save on ballooning AI costs.ETtech
A recent report by brokerage firm Jefferies noted that “AI for now is costing more money than it is saving.” Jefferies estimated that global AI capital expenditure could touch $4.7 trillion by 2029, of which $2.6 trillion will be spent on tech hardware. Engineers are racing to top the charts on a new productivity metric: Tokenmaxxing. According to some experts, staff are said to be using AI for what may be regarded as unnecessary tasks by stuffing prompts with unnecessary context, running endless agent loops, or feeding it with large documents, burning up tokens. Some even ask questions such as “How’s the weather?” ...moreElevate your knowledge and leadership skills at a cost cheaper than your daily tea.Subscribe Now
