
rahul
@rahulgs | CTO
it is simultaneously possible to spend a lot on AI and still underuse it, esp in larger orgs. we're seeing this with meta, uber, and many other orgs instituting budgets. some factors are at play: 1. cost of the frontier comes at an enormous premium: fable -> glm 5.2 is a 10x dropoff in cost. 2. tragedy of the commons, in large orgs, much safer to always default to larger model at a higher reasoning effort. ends up in a situation where most features/people are on too high of a setting, resulting in 2-3x more spend than needed. 3. very easy for runaway automations, openclaw bros, subagent accidents, to create a lot of spend quickly. results in a very skewed distrubtion of usage with a small number of people/features with high usage. to counteract these issues, and avoid internal budgets (for now): 1. we changed defaults across the company to lower reasoning levels, across surfaces. 2. thinking about the p50, p75, p95 session. cost to PR/cost for support ticket/cost for session, and actively compressing model tiers (gpt 5.1->5.4-mini) over time. 3. banning automations from using frontier models, and high reasoning efforts, and using flex api tiers (adds up to 75%+ savings). tldr before you institute budgets, try these first. more in the blog: engineering.ramp.com/post/ai-spend-value - "You're Spending Too Much on AI. You're Also Using Too Little."
Jun 19, 2026












