• 2 min read
Tokenmaxxing Is Back in a New Form
The tokenmaxxing backlash is real, but some companies are still spending heavily on premium frontier AI models and defending the cost.
Image: Gizmodo
The tokenmaxxing era was supposed to be ending. A new entry in The Wall Street Journal’s CIO Journal suggests it has instead evolved: some companies are no longer trying to burn through as much AI compute as possible across the board, but they are still spending aggressively on premium frontier models.
The shift is clear in how executives talk about costs. Twilio CEO Khozema Shipchandler, whose company makes automation software for app-based calling and texting, told the Journal that the industry is now under pressure to prove returns.
“The big question every company, including Twilio, has to reckon with is: Are we truly driving ROI [return on investment] with our AI usage? There will come a time when the concept of 'tokenmaxxing' will be remembered as completely reckless.”
But not everyone is backing away. According to the Journal, Shopify has taken the opposite approach: engineers are not allowed to use anything other than frontier models, effectively pushing them toward expensive options such as OpenAI’s GPT-5.6 Sol or Anthropic’s Fable 5. Farhan Thawar, who leads engineering at Shopify, told the paper he is less concerned about token costs than about speed of learning.
“I typically am not as worried about token cost because I’m learning faster than I would have without the tokens.”
The most extreme example in the Journal’s report comes from Olive, an AI voice startup. Founder Bill Nguyen said that, mostly on his own, he used 774 billion AI tokens over the past month. The estimated bill: $4.5 million. Like Shopify, Nguyen said he sticks to frontier models.
Recommended reading
AliExpress faces record $625M EU fine
“If time to market and competitive risk is more important, and you’re willing to spend for it, there’s no way you’ll choose anything other than a frontier model.”
What emerges is less a retreat from tokenmaxxing than a narrower creed: spend less indiscriminately, perhaps, but keep paying top dollar where believers think cutting-edge models buy speed and advantage.
Enterprise Editor
Marcus follows the money. He covers enterprise software, cloud architecture, and the tectonic shifts in Big Tech strategy. He translates dense earnings calls and complex M&A activity into actionable insights about where the industry is actually heading. If a tech giant makes a silent pivot, Marcus is usually the first to notice.
via Gizmodo
