What Do We Know About The Tokenmaxxing Reversal?
As major tech firms embraced the use of AI tools internally, a phenomenon called “tokenmaxxing” emerged, encouraging the heavy use of AI tokens for work and even using them as a metric to track productivity. However, over the past few months, companies have started acknowledging the steep costs of “tokenmaxxing” with Uber CTO Praveen Neppalli Naga telling The Information in April that his company had already burned through its entire 2026 AI token budget. Last month, the Financial Times reported that some Amazon employees have been using the company’s internal AI tools for non-essential tasks to inflate token usage numbers in response to tokenmaxxing pressures. The report noted similar issues at Meta as well.
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What About Price Cuts To Subscriptions?
Google announced last week it is cutting the price of its cheapest Gemini AI Plus plan while expanding its perks. The price of the AI Plus subscription—which offers access to the Gemini 3 Pro model and the image-generation tool Nano Banana Pro—was cut from $8 per month to $5 per month. Gemini subscriptions product lead Vikas Kansal announced on X that the plan will also include an increase in Google Drive storage from 200GB to 400GB. Google’s new plan undercuts ChatGPT’s cheapest “Go” tier subscription, which is priced at $8 per month. In India, a key market for AI platforms, both Google’s and OpenAI’s cheapest plans start at Rs 399 per month, which is around $4.20.
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further reading
OpenAI Considers Drastic Price Cuts, Anticipating War for Users With Anthropic (Wall Street Journal)
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