Amazon and Meta dial back AI after $7,500 per-employee costs
Amazon and Meta are dialing back their big AI plans after realizing just how expensive things have gotten.
They'd even tied employee performance to AI usage and set up leaderboards, but with companies now spending around $7,500 per employee each month on AI tools — yikes — both tech giants are pulling back to keep budgets in check.
Uber limits monthly AI to $1,500
Uber has capped its employees' monthly AI use at $1,500 each, while an NVIDIA executive admits that in one research team, the cost of AI tools actually topped salaries.
With expenses climbing fast, experts say companies should limit token use and pick more affordable models.
Meanwhile, OpenAI might cut its rates just to stay competitive, showing how tricky it is for everyone to balance cool new tech with keeping things sustainable.