AI has started to become too expensive even for Microsoft and Amazon

Ai has started to become too expensive even for microsoft and amazon

Tech giants spent years telling staff to lean on AI to up productivity. Now those same firms are running into an ugly, expensive surprise: neural-net bills have leapt — fast and far beyond initial estimates.

The Verge says Microsoft is actively shifting engineers away from Claude Code toward its own Copilot CLI. Official explanations cite a move to in-house tooling; insiders, however, point to a simpler culprit — Claude’s token costs become prohibitive at scale (i.e., when usage ramps up across teams).

Fortune notes similar headaches at other big firms. Agent-style AI is especially brutal on budgets: these agents don’t answer a single prompt and stop. They chain steps, call things back and forth, and in practice can eat hundreds to thousands of times more tokens than a plain chatbot request (e.g., automated workflows, multi-step data pulls, etc.).

A striking data point: OpenClaw developer Peter Steinberger reported his team burned through more than $1.3 million on tokens in a single month. Yes — the number feels surreal.

The industry has even coined a term for part of the problem: "tokenmaxing." Staffers sometimes route trivial or vanity tasks through models just to bump internal metrics. Conversations about such excesses are happening at Amazon, Microsoft, and other IT giants — companies that remain among the largest backers of AI development.