Tokenmaxxing is dead, long live tokenmaxxing
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Tokenmaxxing is dead, long live tokenmaxxing
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Re: Tokenmaxxing is dead, long live tokenmaxxing
#2Tokenmaxxing was just a way to force employees to start leveraging AI in a meaningful way.
For companies that have measured performance based on token spend, they can now dial it back. Employees have learned to leverage AI for things they wouldn’t have prior. Now they know what’s possible and what’s not.
No one is stupid enough to always measure performance based on token spend and have unlimited budget. It was always a temporary thing to transition the employees to a new world.
Management felt like employees weren't leveraging AI fast enough. That's why in 2025, there were many mainstream articles about how CEOs were forcing their employees to use AI or get fired. Tokenmaxxing was just the other extreme. Companies will arrive at an equilibrium.
There's no need to overthink this.
Edit: One reply cited this X post as an example of why management needed to do this. Trying to change a company with hundreds/thousands/tens of thousands of employees is hard. You have to send one simple message at a time. https://x.com/danluu/status/1487228574608211969?lang=en
Re: Tokenmaxxing is dead, long live tokenmaxxing
#3Tokenmaxxing was just a way to force employees to start leveraging AI in a meaningful way. For companies that have measured performance based on token spend, they can now dial it back. Employees have learned to leverage AI for things they wouldn’t have prior. Now they know what’s possible and what’s not. No one is stupid enough to always measure performance based on token spend and have unlimited budget. It was alway…
The problem is that managers have no idea how this is supposed to help either, and just get told from above to use AI.
Re: Tokenmaxxing is dead, long live tokenmaxxing
#4>I’ve basically never heard a business leader say that they were going to set a bunch of money on fire because it made them feel good.
Really? ~4 years ago our CEO hired a consultant to fly out several times to do team building exercises. We can't afford to do our 3-year server refresh cycle, but the consultant was no problem to pay.
We just recently had branding consultants come in and also spent thousands of dollars (AWS charges) on rebranding all our photos. We operate in a captive market, if you want to operate in our market you are required to subscribe to our service, and if you aren't in our market you can't subscribe. Branding at the end of the day drives 0 sales.
Heck, reminds me of the time a company I was working with hired a new CTO and one of the first things he did was as "server renaming scheme" using obscure (to the US-centric staff) city names from around the world (database servers are Swiss city names, web servers are Denmark, storage is Finland). We went from cattle naming to pet naming, for a CTO that lasted ~6 months.
In my experience company leadership is not quite as thrifty as this article likes to think they are.
Re: Tokenmaxxing is dead, long live tokenmaxxing
#5>I’ve basically never heard a business leader say that they were going to set a bunch of money on fire because it made them feel good. Really? ~4 years ago our CEO hired a consultant to fly out several times to do team building exercises. We can't afford to do our 3-year server refresh cycle, but the consultant was no problem to pay. We just recently had branding consultants come in and also spent thousands of dollar…
To be fair leaders usually don't say that, they say a whole lot of nothing that means "We're gonna set money on fire because it makes me feel good."
Or more accurately, "Because this is good for my career."
Re: Tokenmaxxing is dead, long live tokenmaxxing
#6Tokenmaxxing was just a way to force employees to start leveraging AI in a meaningful way. For companies that have measured performance based on token spend, they can now dial it back. Employees have learned to leverage AI for things they wouldn’t have prior. Now they know what’s possible and what’s not. No one is stupid enough to always measure performance based on token spend and have unlimited budget. It was alway…
having heard the arguments made by some VP + C-levels throughout the Tokenmaxxing Tulip Mania, I think the interpretation that those mandates were made intentionally for "forcing employees to start leveraging AI in meaningful ways" is too charitable.
Most companies focused entirely on doing "what everyone else is doing" at best or "to see if Programmer Joe can be as productive as the entire team so we can fire the rest".
And many indeed fired employees in droves because they were "underperforming in token spend".
Re: Tokenmaxxing is dead, long live tokenmaxxing
#7Tokenmaxxing was just a way to force employees to start leveraging AI in a meaningful way. For companies that have measured performance based on token spend, they can now dial it back. Employees have learned to leverage AI for things they wouldn’t have prior. Now they know what’s possible and what’s not. No one is stupid enough to always measure performance based on token spend and have unlimited budget. It was alway…
That's a very good point. Our company has been very thrifty with our AI spend, until a few months ago the average employee had ~$50 of supported spend and I was trying to be an AI leader in the company and figure out what was and was not possible, I had a $100/mo spend (Claude $100 service costs $108/mo).
We are now seeing that Claude Code can do a LOT of heavy lifting in our day-to-day work, but the bulk of our employees are stuck cost-maxing and literally cannot "imagine how you are running into your session limits". "I'm fine with the $20/mo account."
There's a case for the cost-maxing has hurt our company.
Re: Tokenmaxxing is dead, long live tokenmaxxing
#8The implication that tokenmaxxing was an intentional and thoughtfully considered approach rather than blind hype-following by an overpaid manager class who are too far removed from value to understand the downsides of LLMs is hysterical beyond belief.
Re: Tokenmaxxing is dead, long live tokenmaxxing
#9Tokenmaxxing was never a thing to begin with. Just because a few companies did it doesn't mean it was a widespread phenomenon.
Re: Tokenmaxxing is dead, long live tokenmaxxing
#10Tokenmaxxing was just a way to force employees to start leveraging AI in a meaningful way. For companies that have measured performance based on token spend, they can now dial it back. Employees have learned to leverage AI for things they wouldn’t have prior. Now they know what’s possible and what’s not. No one is stupid enough to always measure performance based on token spend and have unlimited budget. It was alway…
It really wasn't. It was a moronic move fueled by hype, implemented by the same type of incompetent business leaders who previously, to various extents, drank the blockchain and metaverse kool-aid.
There was demonstrably zero cost or consequence analysis, which is also why it was dialed back as soon as the (still) subsidized tokens became just slightly less subsidized, and the wise leaders realized they spent huge sums of money with no way of gauging ROI.
LLMs may have their use cases, but let's not make up free excuses for blithering idiots who, by any rights, should all be fired for cooking up money-burning policies that are textbook implementations of Goodhart's law.
Anyway, just needed to get that off my chest.