AI costs are rising faster than returns, pushing Big Tech, startups and model providers to cut spending and raising new risks for margins, revenue and valuations.

AI costs are rising faster than returns, pushing Big Tech, startups and model providers to cut spending and raising new risks for margins, revenue and valuations.

Microsoft and Uber are reportedly scaling back their usage of Anthropic's Claude Code tool after the costs became too high.

Artificial intelligence is more expensive than the humans it is expected to replace.