Uber CEO Questions AI Investment After Rapidly Depleting 2026 Token Budget in Just Four Months

In a recent chat, Uber’s president and COO Andrew Macdonald expressed skepticism about the company’s ongoing investment in AI tools, like Claude coding. He pointed out that there doesn’t seem to be a clear connection between the skyrocketing costs of these technologies and any tangible benefits for users.

During an interview on YouTube, Macdonald discussed how, so far, the rising expenses tied to AI haven’t translated into features that would encourage users to stick with or pay for the app. “That link is not there yet, right?” he remarked. “I think maybe implicitly there is more that is getting shipped, but it’s very hard to draw a line between one of those stats and, ‘Okay, now we’re actually producing 25 percent more useful consumer features.’ I think over the coming quarters and years, maybe that will become clearer, but I think today it’s hard, even if some of the underlying metrics are trending in a really astronomical direction.”

In April, Microsoft revamped its pricing model for GitHub Copilot, shifting from a flat monthly fee to a pay-per-token system. Similarly, Anthropic adjusted its pricing for Claude, requiring users to pay based on their monthly usage. This shift has significantly increased the costs of utilizing these AI tools, with expenses potentially tripling compared to when tech giants were subsidizing them.

“We’re going to have to start talking about token consumption and the associated cost versus headcount,” Macdonald noted. “So if you’re not actually able to draw a direct line to how many useful features and functionality you’re shipping to your users, that trade becomes harder to justify.”

It was reported that Uber exhausted its entire AI budget for 2026 in just four months, largely due to underestimating user demand and the costs of providing access to the technology. The company also allocated $3.4 billion for AI research and development in 2025. Essentially, Uber is pouring billions into AI, while its leader is candidly questioning whether it’s worth the investment.

This situation raises concerns and may signal that the AI bubble is on the verge of bursting. When that happens, many wealthy individuals who are considered savvy may find themselves looking quite foolish. And honestly, it’s a development that many are eager to see unfold.