'We created a monster': companies rein in AI usage as costs strain budgets
https://www.ft.com/content/1d37cc08-e0aa-45a4-a45d-4ad282529314
#HackerNews #AIcosts #CompaniesAI #BudgetConstraints #TechNews #AIethics
'We created a monster': companies rein in AI usage as costs strain budgets
https://www.ft.com/content/1d37cc08-e0aa-45a4-a45d-4ad282529314
#HackerNews #AIcosts #CompaniesAI #BudgetConstraints #TechNews #AIethics
Ouch! In a single month, an unnamed enterprise customer ran up a roughly $500 million bill on Anthropic’s Claude.
https://yellow.com/news/claude-spending-tops-500m-usage-limits #AIcosts
Wall Street Journal: Corporate America is starting to ration AI as cost skyrockets. This is an MSN-syndicated article and has no paywall. “Use of artificial intelligence by big companies is exploding—and the soaring cost has some of them pumping the brakes in a way that could complicate AI’s triumphal march across the economy.”
https://rbfirehose.com/2026/05/31/wall-street-journal-corporate-america-is-starting-to-ration-ai-as-cost-skyrockets/Is your team wasting millions on fake AI work?
Tokenmaxxing is the silent budget killer draining corporate funds through pointless AI tasks. One client ran up half a billion in unnecessary charges—and most companies don’t even know it’s happening.
#Tokenmaxxing #AICosts #CorporateWaste #BizScoreAI #AIStrategy
The spiralling costs of using AI are becoming a real problem: Microsoft stops using Claude Code, Uber burned their entire 2026 AI budget back in April, Salesforce, Meta and even Amazon are limiting the "tokenmaxxing" culture.
#AICosts
https://fortune.com/2026/05/22/microsoft-ai-cost-problem-tokens-agents/
Thanks for sharing your thoughts.
Here are the actual numbers
Train Gemini Ultra ~150 GWh
Distill Nano from Ultra ~1–5 GWh / ~1–3%
One Gemini cloud query 0.24 Wh / 0.00000016%
1 year of Gemini cloud serving (~1B queries/day) ~90 GWh / ~60%
👉One Nano on-device query ~0 datacenter-side (phone battery) 0% 👈
Aggregate inference passes the training run in roughly 18–24 months at frontier-deployment scale and that's only counting the per-query number Google chose to publish. Query volume is a rough order-of-magnitude estimate
Gemini Ultra burn would have occurred regardless of Nano deployment.
Nano distill is a one off expenditure of SA grid demand for a day. After that free model with phone recharge.
Maths.