June 18, 2026 01:59 pm (IST)
Follow us:
facebook-white sharing button
twitter-white sharing button
instagram-white sharing button
youtube-white sharing button
G7 declares war on global drug cartels, unveils major anti-trafficking plan | India, Canada launch security pact talks, target trade deal completion in 2026 | PM Modi flags seafarer safety at G7, calls for secure maritime routes amid Hormuz tensions | Messi makes history with first World Cup hat-trick, equals Klose's all-time record in Argentina's 3-0 win | Tragedy in the skies: Five IAF personnel killed in AN-32 crash in Assam | 'Ask probe officers whether I hid anything': Abhishek Banerjee hits back after pre-dawn police search | Police storm Abhishek Banerjee's house at 3 am tracking aide, Mamata arrives; seizure list says 'NIL' | Big boost for India's security: DRDO successfully tests advanced missile shield | Indian-origin man jailed for 34 years in UK over horrific kidnap, torture and rape case | Mamata's nightmare deepens! Saayoni Ghosh, Dev, Rachana Banerjee among 19 rebel MPs seeking TMC split
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.