Chamath Warns Excessive Corporate AI Spending Could Erode EPS

As companies rapidly adopt generative AI, an internal trend known as “tokenmaxxing,” or maximizing the use of AI tokens, is gaining momentum. Because many AI tools charge according to token consumption rather than through fixed subscriptions, these less visible expenses are accumulating quickly. Venture capital investors warn that uncontrolled AI spending could erode corporate profits without management realizing it, ultimately reducing earnings per share.

In July 2026, prominent venture capital founder Chamath Palihapitiya warned that employees' indiscriminate use of AI could shave several cents off earnings per share. Citing 8090, the AI startup he founded, Palihapitiya said its annual AI spending was already closing in on $10 million. He urged management teams to shift from maximizing AI consumption to maximizing value, with a focus on return on investment.