Amazon has told its software engineers to rein in AI use, calling tech firms’ tracking of AI token consumption by staff “deeply flawed” and warning it could drive up costs. Vice president Terk Terkowitz said using token counts as a target rather than a measure risks “tokenmaxxing” that runs against frugality. The move follows engineers burning through budgets on coding projects; Amazon shut an internal AI-spending leaderboard earlier this year but has not imposed a token cap. Disney and Meta run similar leaderboards, and Meta has capped tokens for some employees. Amazon has invested $13bn (£10bn) in Anthropic, which is valued at $190bn and could bring a major windfall when it goes public next month.
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Amazonartificial intelligenceAnthropicIPO
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AMZN
• NeutralAmazon
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Broadline Retail |
| Market cap | $2.7T |
| Close on 10/27/2026 | 253.15 |
| Change that session | +1.63% |
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