Microsoft Curbs Excessive AI Usage with Token Budgets

Microsoft has implemented AI token budgets for every division and made OpenAI's cheaper GPT-5.6 its default internal model, in an effort to curb excessive AI usage.

The company wants its engineers to focus on maximizing outcomes rather than burning tokens, which had become a proxy for productivity.

Every Microsoft division now has an AI token budget target, and employees can see their individual spending on an internal dashboard. Further restrictions may follow as the company monitors where the money goes.

The move comes after Satya Nadella warned about excessive AI usage at the company, saying 'I'm a tokenmaxxer too, it's addictive.'