Microsoft Just Banned ‘Tokenmaxxing’

Microsoft Executive Vice President Jay Parikh informed employees that the company is banning tokenmaxxing to prioritize business outcomes and customer results. To rein in AI token consumption, Microsoft is introducing division-level AI budgets and admin spend caps. The company has switched its default internal AI model to a cheaper OpenAI version, specifically GPT-5.6. This shift emphasizes ROI-driven spending, urging engineers to focus on maximizing outcomes rather than maximizing the usage of tools like GitHub Copilot.