Microsoft just banned its own engineers from using AI.
The tool was literally costing MORE than the humans it was supposed to replace.
They lied to you about AI adoption and now the whole narrative is blowing up:
Microsoft gave thousands of engineers access to Claude Code six months ago and encouraged them to use it.
Engineers loved it and adoption exploded. But then the invoices arrived.
Token-based pricing means every query, every code review, every debugging session costs money. At scale across 100,000 engineers, the numbers became so large that Microsoft issued an internal order to cancel nearly all Claude Code licenses by end of June and force everyone onto their own cheaper tool instead.
The company that invested $5 billion in Anthropic just told its own people to stop using Anthropic's product because it costs too much.
Uber's story is even worse...
Their CTO Praveen Neppalli Naga told The Information that the budget he planned for the full year was "blown away already" by April.
Uber had rolled out Claude Code in December 2025. By March, 84% of their 5,000 engineers were using it with 70% of all committed code coming from AI systems.
Heavy users were burning $500 to $2,000 per month each. Naga himself spent $1,200 in a single two-hour demo session.
The company had even built internal leaderboards ranking engineers by how much AI they used. They literally gamified the spending and then ran out of money.
Now look at what Nvidia's own VP of applied deep learning Bryan Catanzaro said to Axios last month. Direct quote:
"For my team, the cost of compute is far beyond the costs of the employees."
This is a VP at the company that SELLS the chips saying that using AI is more expensive than paying humans.
Think about what this means for the entire AI narrative.
Every CEO on every earnings call for the past two years has said the same thing:
AI will make us more efficient, reduce headcount, and cut costs.
The stock market rewarded every company that said it.
Fired workers, stock goes up. Announced AI adoption, stock goes up.
But the actual companies deploying AI at scale are discovering the math doesn't work. The MORE employees use AI, the HIGHER the bill.
Goldman Sachs forecasts a 24x increase in token consumption by 2030 as companies adopt AI agents. Gartner just published a report showing that even though individual token prices will drop 90% by 2030, total enterprise AI costs will go UP because agents consume exponentially more tokens per task than basic tools.
Meta built an internal dashboard called "Claudeonomics" to track which employees use the most AI. Amazon started pushing engineers to "tokenmaxx," their internal term for consuming as many AI tokens as possible.
Both companies are spending hundreds of billions on AI infrastructure this year alone.
And Microsoft, the company that bet its entire future on AI, just told 100,000 engineers to stop using the tool they liked best because the per-token bills got out of control.
The companies building AI are telling investors it saves money. The companies using AI are finding out it costs more than the humans it was supposed to replace. And even the company that makes the chips just admitted it through its own VP.
This is the gap nobody on Wall Street is pricing in.
$725 billion in AI infrastructure spending this year across Big Tech. And the first companies to actually deploy these tools at scale are already pulling back because the economics don't work.
What do you think?
🚨 Every Republican present in the House Appropriations Committee last night voted to make THEMSELVES eligible to collect from Trump's $1.8 billion January 6th slush fund. I am not making this up.
I introduced an amendment to stop Members of Congress, the President, and the Vice President from collecting a single dollar from Trump’s slush fund unless a court actually orders it.
Every single Republican who cast a vote was AGAINST my amendment, making themselves eligible for settlement funds.
Members of Congress, the President, and the Vice President, have no business lining their own pockets by claiming they were victims of government weaponization. Trump set up this fund, now MAGA Republicans in Congress are ensuring they all can collect from it.
That is exactly the kind of self-dealing corruption the American people are sick of.
Cassidy on ballroom: There's no architectural plans. There is no environmentals. There's no engineering. There's no sense of when we ask, how did it happen to cost exactly a billion. I just don't get it.
This is truly the most beautiful video I’ve seen lately
So tender and heart-warming, yet it makes you stop and reflect, with a subtle touch of sadness
We may have gained so much, but perhaps we’ve lost even more✨
#BREAKING: Lawrence: “There is exactly one First Lady in history who met sex trafficker and raper of children and good friend of Donald Trump, Jeffrey #Epstein, and today, Republicans on the House Oversight Committee decided to question a former First Lady who NEVER MET Jeffrey Epstein instead of the First Lady currently occupying the White House, who was friends with Jeffrey Epstein and his convicted sex trafficking co-conspirator Ghislaine Maxwell. Donald Trump’s third wife was friends with BOTH of them. The Epstein files contain emails from Melania Trump to Ghislaine Maxwell complimenting Ghislaine Maxwell. The Epstein files contain NO communication at all between Hillary Clinton and Jeffrey Epstein or Ghislaine Maxwell but Republicans on the committee decided they wanted to subpoena Hillary Clinton. Where is their subpoena for Melania Trump who actually knew Jeffrey Epstein and Ghislaine Maxwell? Why aren’t they asking Nekania Trump: Did Donald Trump introduce you to Jeffrey Epstein or did Jeffrey Epstein introduce you to Donald Trump?”😳
McGowan: There's three people mentioned most in the Epstein files: Jeffrey Epstein, Ghislaine Maxwell and Donald Trump. But we're deposing Hillary Clinton?
#BREAKING: Legendary #Maddow: “Today, you know there’s this huge #blizzard on the east coast. Today, for some reason, Kristi Noem’s department decided to fly a real deportation flight into New Hampshire. They flew it into…New Hampshire at 1 am today, right at the height of the blizzard. The airport…said they had NO IDEA this flight was coming, had they known they would have told them don’t come, it’s not safe, but Kristi Noem’s department, in its INFINITE WISDOM, flew this plane full of people there, presumably shackled…and then they left the people on that plane on the tarmac for more than 12 HOURS in the middle of that blizzard.”🤦♀️