Uber caps employee AI spending after blowing through budget in 4 months

AI is getting expensive, and some companies are cutting back on usage in an effort to moderate costs. That cohort includes Uber, which recently instituted internal usage limits as a way to reduce its exorbitant AI spending.

Bloomberg reports that the company has implemented a new rule that sets a monthly limit of $1,500 per employee and per coding tool for agents, including Anthropic’s Claude Code of Cursor. Usage is trackable through an internal dashboard that every employee has access to, although – in certain cases – limits can be exceeded with permission, the company says.

The news may not be too surprising considering the company’s CTO was appointed in April revealed that the ridesharing giant had blown its entire annual AI budget in four months. That appears to have happened after Uber encouraged staff to use AI “as much as possible” and even ranked their internal use competitively in its internal rankings, says The Information. previously reported.

So does Uber’s COO, Andrew Macdonald recently sown doubt on AI’s impact on productivity, noting during a podcast appearance that “it’s very difficult to draw a line” between AI use and new consumer features.

Uber’s cuts raise a broader issue currently facing the tech industry: Where exactly is the return on investment when companies pour money into AI? The AI ​​ROI has indeed remained a factor thus far largely theoretical phenomenon which everyone hopes will eventually become a reality – although some companies are clearly getting a little restless while they wait.