AI

How to stop tokenmaxxing and cut AI spend 10x

Three fixes to reduce token burn and improve ROI.

Ravi Mehta

I don’t think tokenmaxxing is a sign of AI’s demise—it’s the result of very real growing pains. Spend time around an AI-native product development team, and you’ll see significant productivity gains. But the prevailing approach to capturing those gains has been almost caveman-like: more AI good, with little discipline around cost.

Wasted token usage is a highly solvable problem. The catch is that the fixes go against the grain of AI “best practice.” Taken together, cost savings of 5x–10x are very achievable.

What this essay explores

  • Choose models by task instead of treating frontier models as the safe default.
  • Use reusable skills selectively, balancing predictable outputs against the context they add.
  • Reserve AI for work that needs it rather than replacing deterministic rules.

From fixed rules to learned behavior: the shift from the computation era to the learning era.

Key takeaway

Three fixes to reduce token burn and improve ROI.

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