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Amazon accidentally spent $1.8 million using Claude for menial coding task, went 860% over budget —'catastrophically expensive' coding blunders discovered in internal Amazon AI usage metrics
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Latest from Tom's Hardware
Amazon has several internal reports that show how AI is causing the company to overspend on various projects.
The Financial Times reports that the cost overruns reached $1.8 million, and that is just for one project.
These mistakes used to be “trivially cheap,” but AI models made them “catastrophically expensive,” especially as token spending drastically increased with the deployment of AI agents.
It also used to have an internal leaderboard that showed which employees used AI the most, but has since dropped it as spiraling AI costs made them think twice about the policy.
Many tech companies have been pushing their people to use AI, supposedly to increase productivity through tokenmaxxing.