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Uber CTO signals end of AI "tokenmaxxing" era amid cost-efficiency drive

Uber's Chief Technology Officer, Praveen Neppalli Naga, has stated that the company is moving beyond the "tokenmaxxing" era of AI usage. Initially, Uber encouraged extensive use of AI tools like Anthropic's Claude Code, even creating leaderboards for engineers, which led to exceeding their AI budget rapidly. However, Uber has since implemented strategies to improve efficiency, such as prompt caching, adjusting default models, and allowing engineers to monitor their AI costs. These measures have reportedly decreased the cost per token and overall AI expenditure, even as adoption increased, reframing efficiency as an engineering challenge rather than a budgetary one. AI

IMPACT Companies may shift focus from rapid AI adoption to optimizing efficiency and ROI, potentially slowing widespread AI integration.

RANK_REASON Commentary from a company executive about a trend in AI usage and cost management.

Read on Fortune →

AI-generated summary · Google Gemini · from 1 sources. How we write summaries →

Uber CTO signals end of AI "tokenmaxxing" era amid cost-efficiency drive

COVERAGE [1]

  1. Fortune TIER_1 English(EN) · Sasha Rogelberg ·

    After blowing its entire 2026 AI budget in months, Uber CTO says ‘We’re coming to the end of the so-called ‘tokenmaxxing’ era’

    “You might expect costs to rise as adoption accelerates,” Praveen Neppalli Naga said. “We've seen the opposite.”