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Some startups are tokenmaxxing. Others tell us it's a 'stupid' trend that will die out.

All Content from Business Insider·Henry Chandonnet·about 1 month ago
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Startups take different strategies with token spending, from hard budgets to minimum quotas. Hassan Ismail; Brennan Lupyrypa; Kavitta Ghai Tokenmaxxing is all the rage in Big Tech. For startups, the trend is opening up debate. Some founders told Business Insider that they spent big on tokens; others used capped subscription plans. One founder called tokenmaxxing "extremely stupid." Another said: "You've got to spend money to make money." Kavitta Ghai wants her startup's engineers to spend more tokens. The 29-year-old cofounder of Nectir started setting minimum quotas for Claude Code use. First it was at least $100 in tokens a week, then $200. Now, the expectation is that her engineers each spend a couple thousand in AI tokens a month. The strategy has been successful, Ghai said. Some of Nectir's senior engineers were previously skeptical of AI coding tools; now, they call it their "army of coders," she said.…

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