1 of 1
Story summary
- Microsoft set new limits on engineers’ AI token usage to curb “tokenmaxxing” after record earnings.
- Executive Vice President Jay Parikh emailed staff that tokenmaxxing is not optimized and urged focus on needle-moving outcomes.
- Divisions have an AI token budget target and track monthly spending of hundreds to a few thousand dollars.
- In May 2026 Microsoft told engineers to stop using Claude Code, setting a June 30 2026 deadline for removal.
