GoKawiilSign up to see the future, today Can’t-miss innovations from the bleeding edge of science and tech Email address Sign Up Thank you!
An eyebrow-raising trend has emerged this year: tech leaders rating their employees’ productivity based on the number of AI tokens they use.
The trend, ribbingly dubbed “tokenmaxxing,” has sparked discourse for symbolizing the Silicon Valley’s unbridled infatuation with using AI as much as possible — and, quite literally, at all costs.
But what’s so far been a free or at least low-cost ride could be coming to a screeching halt. Setbacks plaguing the construction of AI data centers have brought the industry’s biggest chokepoint to the forefront: access to the precious computing power that makes frontier models tick.
As costs continue to ramp up, enterprise consumers could soon be left holding the bag, with companies like OpenAI and Anthropic looking to ramp up prices to stem at least some of the bleeding. It’s a notable shift after years of complimentary access to cutting-edge AI, a practice that has long belied the tech’s true costs.
“Is the era of basically free or close-to-free AI kind of coming to an end here?” Georgia Tech professor Mark Riedl asked The Verge. “It’s too soon to say for certain, but there are some signs.”
Most recently, Anthropic cut off millions of users from AI agent tool OpenClaw after it forced its systems into overdrive.
“We’ve been working hard to meet the increase in demand for Claude, and our subscriptions weren’t built for the usage patterns of these third-party tools,” Anthropic’s head of Cluade Code, Boris Cherny, tweeted earlier this month. “Capacity is a resource we manage thoughtfully and we are prioritizing our customers using our products and API.”
The company transitioned to a pay-as-you-go billing system to use its application programming interface (API), which charges users per token instead of more open-ended usage limits.
To generate enough money and cover the trillions of dollars being poured into AI data centers, AI economics expert and Gartner senior director analyst Will Sommer told The Verge that AI companies would need to get close to $2 trillion per year in revenue by 2029, in “historic returns” that would dwarf current figures.
... continue reading