Palihapitiya Warns $10 Million AI Token Spend Could Dent EPS by Pennies
Updated
Updated · CNBC · Jul 14
Palihapitiya Warns $10 Million AI Token Spend Could Dent EPS by Pennies
2 articles · Updated · CNBC · Jul 14
Summary
Chamath Palihapitiya said unchecked AI token usage could cause some companies to miss earnings, with CEOs and CFOs unaware of spending building inside their organizations.
More AI use does not guarantee returns, he said, arguing the "tokenmaxxing" push is ending as companies realize they may be feeding revenue growth for AI vendors without meaningful ROI.
Palihapitiya cited his own startup 8090, saying in March its AI spending was trending above $10 million a year — a level he called "very scary" for a small company.
The warning adds to a broader backlash against token-based pricing models after Palantir CEO Alex Karp this month said enterprises were wasting time and money on tokens.