3 weeks ago
Uber CTO Says 'Tokenmaxxing' Era Ending as AI Costs Fall
Uber is a big company that helps people get rides using an app.
Uber also uses artificial intelligence, or AI, to help its workers do their jobs.
Earlier this year, Uber spent all the money it had planned to spend on AI for 2026, much faster than expected.
That happened because many engineers started using a tool called Claude Code.
Uber's technology leader, Praveen Neppalli Naga, says the company has now learned to use AI more carefully.
Even though four times more employees are using advanced AI than at the start of the year, Uber is spending less money on it.
Uber saved money by cutting unneeded AI requests, reusing prompts, and choosing cheaper models.
Uber is also putting AI experts into teams like finance, legal, and marketing to make work faster.
Some jobs that used to take hours or even days now take only a few minutes.
Naga says this shows the era of 'tokenmaxxing' — spending as many AI tokens as possible — is coming to an end.
Uber exhausted its entire 2026 AI budget in April after a surge in adoption of Anthropic's Claude Code.
CTO Praveen Neppalli Naga says Uber is nearing the end of the so-called 'tokenmaxxing' era.
The number of Uber employees using advanced AI tools has more than quadrupled since the start of the year while AI costs are decreasing.
Uber cut AI spending through efficiency measures including reducing unnecessary requests, improving prompt reuse, and testing cost-effective models.
Uber is placing AI-expert engineers in non-technical teams such as finance, legal, and marketing, shrinking some processes from hours or days to minutes.
- Who
- Uber Chief Technology Officer Praveen Neppalli Naga, commenting after the company's second-quarter earnings call.
- What
- Naga announced that the era of 'tokenmaxxing' is ending as Uber's AI costs decline despite a surge in employee adoption of AI tools.
- Where
- Announced in a post on X after Uber's second-quarter earnings call.
- When
- August 5, 2026, following Uber's second-quarter earnings call; Uber's 2026 Claude Code budget had been exhausted in April.
- Why
- Uber blew through its 2026 budget for Anthropic's Claude Code in April due to heavy adoption by engineers, prompting the company to focus on AI efficiency.
Key facts
- Company
- Uber
- Chief Technology Officer
- Praveen Neppalli Naga
- Announcement
- End of the 'tokenmaxxing' era
- Date of announcement
- August 5, 2026
- 2026 AI budget status
- Exhausted in April 2026
- Main cost driver
- Adoption of Anthropic's Claude Code
- Employee AI adoption
- More than quadrupled since start of the year
- AI cost trend
- Decreasing despite higher adoption
Quotes
Praveen Neppalli Naga
Chief Technology Officer of Uber
“As our CFO mentioned today during the earnings call, we are seeing very interesting trends in AI costs, I think it's another sign that we are nearing the end of the so-called 'tokenmaxxing' era.”
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