Sam Altman says rising AI token cost is a huge issue, but he is not sure why

OpenAI CEO Sam Altman observed that companies are now grappling with unexpectedly high AI costs, a shift from just months ago when spending was not a concern. Firms like Uber and Walmart have introduced monthly AI usage caps—such as Uber’s $1,500 limit for employees—to control expenses, as some organizations reportedly exhausted their entire annual AI budgets within the first quarter. Altman shared during an enterprise event that companies now frequently ask for ways to reduce token consumption, joking that some firms ‘spent their entire 2026 budget in Q1.’ Tokens measure AI usage, and exceeding pre-purchased limits incurs additional charges. He emphasized that cost concerns were nonexistent until recently, with companies previously satisfied with spending levels. Token usage has skyrocketed: six years ago, OpenAI’s top user consumed 100,000 tokens monthly, while today’s leaderboard topper uses 100 billion tokens monthly—still not the global peak, as an external user surpasses even that, a detail Altman called ‘embarrassing.’ Companies like Meta and Amazon have dismantled internal AI leaderboards to curb excessive usage after costs spiraled. OpenAI is reportedly working to optimize value for users amid rising costs, though Altman stressed the issue emerged abruptly. The trend raises questions about sustainability as AI adoption accelerates, particularly as competitors like Anthropic prepare for a potential $1 trillion IPO valuation. Meanwhile, reports indicate one company spent $500 million on Claude AI in a single month, underscoring the financial strain.