July 02, 2026 11:26 am (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
Ram Mandir donation theft: Six accused were employed by Varanasi-based security firm, probe reveals | Ayodhya Ram Temple donation theft: Probe says majority of money was allegedly stolen during Kumbh Mela | Commercial LPG price slashed by Rs 183.50 from July 1; check new rates in Delhi, Mumbai, Kolkata and Chennai | Trump suffers major blow as US Supreme Court upholds birthright citizenship | Delhi-Mumbai Expressway horror: Passenger bus goes up in flames after fatal collision, 8 dead | 'Dharmendra Pradhan will be responsible if anything happens': CJP warns as Sonam Wangchuk's health worsens on day 3 of hunger strike | Adani Ports seals $1.4 billion mega deal as MSC buys 49% stake in Vizhinjam port | Ram Temple donation scam: Former trust chief Champat Rai grilled by SIT for 2 hours, says report | Brazil escape Japan scare, Germany crash out as Paraguay script World Cup shocker | India overtakes Taiwan, South Korea to become world's fifth-largest equity market again
Tokenmaxxing
Representational Photo: ChatGPT

‘Just keep prompting’ is costing big tech millions — the rise of AI ‘tokenmaxxing’

| @indiablooms | May 29, 2026, at 01:58 pm

Mumbai/IBNS: Big tech companies embracing Artificial Intelligence for faster productivity are now facing mounting operational costs, forcing them to rethink their AI spending strategies, media reports said.

What Is ‘Tokenmaxxing’?

The growing concern is linked to a term increasingly used in AI circles — “tokenmaxxing”.

In the AI ecosystem, tokenmaxxing refers to maximising prompts, outputs, and workflows to extract greater value from AI models.

However, excessive prompting and overuse of AI tools by employees have reportedly led to soaring AI-related expenses for several technology firms.

As companies expand the use of generative AI across departments, uncontrolled usage is significantly increasing computing and API costs.

Companies Begin Tightening AI Budgets

The rising expenditure has prompted major firms to introduce stricter AI budgeting and internal controls to prevent costs from spiralling out of control.

According to reports, Microsoft has cancelled its Claude Code licences for employees and asked them to shift to the company’s internal AI tools by June 30.

Similarly, Uber COO has reportedly warned that the “just keep prompting” culture is no longer a sustainable business model due to escalating AI costs, Business Today reported.

Amazon Flags ‘Tokenmaxxing’ Behaviour

Amazon has also reportedly scrapped an internal leaderboard that tracked employee AI usage after discovering that some workers were inflating their numbers with unnecessary AI activities, increasing the company’s computing costs, Financial Times reported.

Dave Treadwell, Amazon’s senior vice-president, reportedly told staff that while the leaderboard was created with good intentions, employees’ “tokenmaxxing” behaviour ultimately drove up expenses for the company.

Support Our Journalism

We cannot do without you.. your contribution supports unbiased journalism

IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.

Support objective journalism for a small contribution.