The job market is actually getting a boost from AI: Turns out human workers are cheaper

Rising AI “token” costs and rampant internal usage (“tokenmaxxing”) are forcing companies to rethink the economics of replacing workers with AI, boosting near-term prospects for the labor market while creating cost pressure on Big Tech margins. Firms including Uber, Microsoft and Nvidia have seen unexpectedly high AI spend — Uber reportedly exhausted its 2026 AI budget by April, Microsoft canceled some Anthropic/Claude licenses, and an unnamed firm allegedly spent $500 million on Claude in one month — prompting pullbacks and tighter controls. The development is a mixed signal for markets: it may curb runaway AI spending and preserve jobs, but also highlights uncertain ROI on AI investments and potential margin risks for companies heavily invested in AI infrastructure. Token prices are cited as up ~60% since late February, intensifying the debate over AI versus human labor economics.