Hey folks! A great organization I work with and support called Calculated Genius is looking for 8-10 computer science professionals to sign up to mentor aspiring STEM professionals from underrepresented backgrounds for their up coming program. I believe this would be a valuable volunteering opportunity for those who have a passion for young aspiring engineers and future technologists. If youโre interested in signing up to mentor, send me a message.
I predicted this would happen last year. I said that the cost of tooling and usage would backfire on these companies taking advantage of the ease of AI. The same will happen with infrastructure and the increase in cost of running enterprise agents. The answer is to minimizeโฆ
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?
Jeff Bezos said the bottom half of Americans should pay zero federal income tax.
He cited a nurse in Queens making ~$75K and paying ~$12K in taxes saying โwe shouldnโt be asking this nurse in Queens to send money to Washington.โ
@realDonaldTrump@JDVance do you not care that this is the reality for people right now? If gas at Arco is this high right now, you can only imagine what the cost is at Chevron and other major gas stations. Relieve us. Stop this war!!!
An amazing organization who Iโm proud to be apart of, Hack the Hood - has their Summer 2026 programs applications closing soon.
If you know someone 14-25 who may be interested in learning tech skills this summer and joining a community of Bay Area youth exploring careers in technology, apply today.
Participants are given a laptop and a cash stipend if accepted into the program.
Apply Here for Summer 2026 Programs - https://t.co/AHO4n4Y6Jv
The โBlackathonโ registration is now open. Join us on Friday, April 24 for a virtual hackathon focused on bold ideas, innovation and solutions that can make an impact across the diaspora and beyond.
Prizes include $5,000+ in cash and prizes.
Register here: https://t.co/wOGvIYNtG5 #blackintech #blacktechtwitter #blacktechmatters