TechCrunch

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

Title: Uber Imposes AI Spending Limits Following Rapid Budget Exhaustion

As artificial intelligence costs continue to climb, several corporations are scaling back their adoption to control expenses. Among them is Uber, which has introduced internal usage restrictions to curb what it describes as excessive AI expenditures. According to a Bloomberg report, the company has implemented a new policy capping spending at $1,500 per month for each employee using agentic coding tools, such as Cursor or Anthropic’s Claude Code. Employees can monitor their consumption through a personal internal dashboard, though Uber notes that exceptions to these limits can be granted with approval.

This strategic shift follows revelations from April, when Uber’s CTO disclosed that the ridesharing company had depleted its entire annual AI budget within just four months. Prior to this, The Information reported that Uber had actively encouraged its workforce to utilize AI tools as extensively as possible, even fostering competition by ranking usage metrics on internal leaderboards.

Despite the initial push for widespread adoption, Uber’s leadership is beginning to question the tangible benefits. Recently, COO Andrew Macdonald expressed skepticism regarding AI’s impact on productivity. During a podcast appearance, he remarked that “it’s very hard to draw a line” between the use of AI and the development of new consumer features.

Uber’s decision to tighten its AI spending highlights a growing concern across the technology sector: as enterprises invest heavily in AI technologies, the return on investment (ROI) remains elusive. Currently, AI ROI is largely considered a theoretical promise that many hope will eventually become reality, though some organizations are becoming increasingly impatient while they wait for concrete results.


Source: TechCrunch Generated at: 2026-06-02 19:11:48 UTC

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