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Posted by karakoram 4 days ago

YC's Garry Tan uses AI agents so much, he spends up to $200K a year on tokens(techcrunch.com)
112 points | 178 comments
bartread 4 days ago|
The thing is, it's not actually that hard to spend at that kind of rate.

I wouldn't say this was the norm, but I have burned through £1k of tokens in a couple of days before. And, on that same gig, I realised a test I was considering running would burn £2.5k worth of tokens over the course of a few hours so spent a couple of hours of my own time re-engineering it to get that down to £150.

The point is that I don't necessarily know that spending a shitload of money on tokens really tells us anything useful. If he's getting a return on that investment, fine, whatever.

Obviously most of us couldn't afford to spend that much ourselves, no matter how much value it might deliver, and many of our employers wouldn't be too happy if we spent it on their dime either. Equally, if you can, and it's delivering real value, then I don't see why you wouldn't?

nodesocket 4 days ago||
At what point do you buy a Mac studio or AMD Gorgon Halo and try running some of these tasks in local models? Surely don’t need frontier models for all this work.
bartread 3 days ago|||
You definitely don't need frontier models for all this work.

And, in fact, I got it from £2500 to £150 by careful model selection (I ran a trial over a small dataset with different models until I found the least expensive/capable model that would reliably do what I needed), using a local model for one step, and paring down the inputs as well so the token count plummeted.

wolvoleo 3 days ago||
Yeah I see the same thing at work. Most of the people burning crazy numbers of tokens aren't doing any amazing work. They're just using fable to write their emails and do their web searches.

They feel like they're super smart but it's just as smart as hiring a $500k/yr PhD as a PA to schedule your meetings and answer the phone. Sure it does a good job but you're just wasting money and abilities.

They feel super edgy and bleeding edge but all they really do differently is switching the AI chat from auto to the most expensive option all the time. When I see what they're using it for they're only grasping the basics of its abilities.

They're also people sending 2 page AI generated emails that make no sense for literally everything where a "Yeah sure let's do that" would have sufficed.

Unfortunately most of these are business leaders who just want to look edgy and "all in on AI" so we can't really limit their tokens. Yet they're also the ones saying we spend too much and want to limit some of our dev teams actually putting it to good use.

bigfatkitten 3 days ago||
I tokenmaxxed in my last role.

Management succumbed to AI psychosis, and so we were directed to show that we were adopting and using AI, but what we were using it for was not considered important. So we went out of our way to burn as many tokens as possible.

If you tell Claude to be inefficient and burn as many tokens as it can, it’ll happily oblige. It will also offer useful advice as to how to use even more tokens.

jorvi 3 days ago|||
You don't.

Once you factor in cost of electricity and depreciation of hardware, it is more expensive to run locally.

There are many arguments for running local but cost isn't one of them.

nodesocket 3 days ago|||
> but cost isn't one of them.

Let's do quick back of the napkin math.

  - Mac Studio M5 Ultra, 80-core GPU, 256GB memory, 2TB storage -- $11,299.00.
  - Power (385w continually 100% of month) is $40/mo (my regional) or $480 annually. Let's say power is 3x more expensive in California, which it probably is, that's still only $1,440 annually in power.
The Studio M5 Ultra has a worklife of at least 3 years.
klrefg 2 days ago|||
You have to compare with how much Deepseek costs since all the models you will be running will be inferior anyway, certainly not Opus or similar.
jcelerier 3 days ago|||
it's going to be quite slower than remote providers, won't be able to run full models, only quantised, and for more cost than the highest Claude subscription tier where you can do roughly 60-100M token per month at 200$, e.g. 7200 for three years. It makes sense if you prioritize local AI but not really otherwise sadly.
bitfilped 2 days ago|||
You have to be using an incredibly small amount of usage for your math to math here. Go price out a few MW or better site then ask a neo cloud how much that same amount of compute will cost at an API.
plusfour 4 days ago|||
> would burn £2.5k worth of tokens over the course of a few hours

details please, if it's interesting

deadnomore 4 days ago|||
Evaluation loops do this easily. You have to run hundreds of reasoning jobs in parallel and very quickly you can torch thousands of dollars.
bartread 3 days ago|||
Yeah, it was basically this, and running a whole lot of agents concurrently to churn through the dataset faster.
sixtyj 3 days ago|||
Yup, run multiple agents on expensive model in loop via API.

You can do it if your employer has endless pockets.

Example: $30/1M input tokens (I don’t count output or cache, for simplification), you have several daily agents for everything => 3M tokens daily per agent * 10 agents ~> $900/day => $328k/year (API spending)

hparadiz 4 days ago|||
Any 3D work in blender can burn that easily. Add video editing to that mix in any capacity.
jmathai 1 day ago||
If I were spending $200k on tokens then I sure would expect some mind boggling results. I don't know much about what this person is doing with them and maybe they've launched several companies or created several new inventions .... but that's what I'd expect personally at that spend.
fantasizr 4 days ago||
I can't recall software being conspicuous consumption until the advent of the AI token. Maybe the first "I am rich" app in the app store for $999.
johnfn 4 days ago||
Pretty sure Joel Spolsky said “we purchase the best machines money can buy for our developers” like 20 years ago. So it’s hardly a new concept.
isolatedsystem 3 days ago|||
Not sure why that counts. An engineering workshop buying mint quality lathes would just be considered "Buy once, cry once" in my eyes.
asdff 3 days ago||
Lathe sure. But what about shiny macbook pro to ssh into aws
trymas 3 days ago||
eh, compared to salaries even shiniest macs wouldn't register in USA, especially hubs like SV. Especially if it's issued once a couple or four years.

With AI spend - especially at Anthropic/OpenAI API prices - spending 0.5-1 macbook a month worth of tokens per employee seems normal (from what I've seen, heard, what happens in this forum and thread and what my employer does).

Tokenmaxxxing (followed by commit/PR-maxxxing) is celebrated. Don't think - just launch orchestrator that will create dozen child agent sessions to do useless work to impress your superiors. If buy the end of the day you will ask to increase your token allowance - you're a superhero.

raincole 3 days ago||||
> machines

That's hardware.

fantasizr 3 days ago||||
I personally recall hardware flexing going back to SGI, but nothing like "look at my salesforce spend".
ASalazarMX 4 days ago|||
I've seen the other side of that coin: "my program is blazing fast in my machine, I don't know why those naggy users are complaining!"
fantasizr 3 days ago||
Getting your app to run on the worst devices was artistry. Assuming the lowest IE and windows environment.
asdff 3 days ago|||
Hardware for sure. Big statement giving the entire company macs vs pc. Apple spelled it out in those ads.
itishappy 4 days ago|||
AWS spend and other service bills?
fantasizr 4 days ago||
My take was when people would post those large bills it was mostly to complain about Amazon or a process having gone wild for comedic purposes.
itishappy 4 days ago||
My take is that disclosures like these are always humble brags and/or marketting (look at how much I can afford to spend) with minor complaints rolled in to disguise this fact.

> “It’s too expensive right now,” he said, adding that he knows the amount of money he spends on AI agents is “a crazy privilege that not everyone can do.”

maxbond 4 days ago|||
Superchats and other livestream gifts
fantasizr 4 days ago||
Agree I meant mostly in the vein of "look how much I can spend on XYZ because I'm rich and I can" with questionable value.
addaon 3 days ago||
> I can't recall software being conspicuous consumption

https://en.wikipedia.org/wiki/I_Am_Rich

sho 3 days ago||
As many others have said, that's not even slightly impressive. Someone maxing out a single claude ultra plan on opus 5.5 is already doing ~$160k+ per year if the massively inflated API prices are used. I personally have 5 and the only thing stopping me getting more is concern about being banned, I could easily double my usage if it was safe and convenient. Hell, I could probably 10x it or more.

Once you make the jump to agents managing agents the only limit is your budget and your harness's ability to coordinate. We'll all be using far more tokens than this in a year or two.

mi_lk 3 days ago||
What do you do that you are maxing out 5 accounts
avaer 3 days ago|||
I want to know if there are any returns on that. Even with the insane discount on API prices.

Or are people paying $1K/mo (subsidized) just because AI is fun? Can you imagine a video game charging $1K/mo?

roryirvine 3 days ago|||
I absolutely can imagine a video game doing that, especially if there were some way to make the consumption be conspicuous.

In Tan's case, I think the "fun" thing is the right way to look at it. He gets to play at being a big shot developer and show off on Twitter, so clearly he feels he's getting some value from his spending even if no-one else does.

There is a more serious question about to what degree the AI vendors have a duty of care to prevent addicts from getting themselves into financial trouble - perhaps they might in future face the sort of regulation applied to high street bookmakers. I doubt Tan would fail any putative affordability test, though, so it would still be up to him to seek help for his problem if he feels its getting out of control.

sho 3 days ago||||
Well, I run a number of apps that have users who appreciate them (I hope?) and they simply wouldn't exist without AI giving me the leverage to build them. So.. yes? What's a "return", anyway? It's worth it to me, obviously!

But you might have hit the nail on the head - yes, it's extremely fun and maybe that's the main reason after all. And FYI many, many people pay a lot more than $1k/m for video games.

HWR_14 3 days ago||||
Even if it was just for fun, $12,000 a year for a hobby is not cost prohibitive for a lot of people.
tarballing 3 days ago||
Median average single salary in the US is ~64k a year. Spending ~19% of all income on a single hobby is completely out of the question for the vast majority of people.
killingtime74 3 days ago|||
If you claim it as a business/work expense (In Australia, that gives you a 47% discount), 1K is not even one day's salary for a well-paid dev and just about one day for an average paid dev.
Zanfa 3 days ago|||
Are Australian software devs really averaging 250k USD per year?
bigfatkitten 3 days ago|||
No, though a very small minority are in that range with equity etc from Big Tech.
killingtime74 3 days ago|||
Its bimodal. If you are at one of the big ones yes. Its on levels.fyi (you can narrow to Australia)
tarballing 3 days ago|||
Average base compensation for SWE is ~140k (in the US w/ the highest earning SWEs), so the average is roughly half of that. Earning ~275k is comfortably in the top 20% of all SWEs; 1k a day is easily in the top 5%.
sho 3 days ago||||
Day job, multiple side projects which are their own entire public apps, research, personal agents, running and developing the custom harness that orchestrates all of the above..

It sounds like a lot when I type it like that, but it's not actually that much if you delegate brutally. Like I said, I'm constantly token starved and could do a lot more!

iLoveOncall 3 days ago|||
Feeling productive while achieving nothing.
sho 3 days ago||
Very clever - your comment is a description of itself
rendaw 1 day ago|||
No, he spends that much on tokens. Not he subscribes to ultra and then uses the equivalent amount on tokens.
dgellow 3 days ago|||
Have you looked at offers from CommandCode and similar? https://commandcode.ai/pricing

You can get access to DeepSeek 4.1 Flash for almost nothing, on a $1, $10, or $100 subscription. That can complement your 5 Claude accounts, or replace some. DS Flash 4.1 is so fast and cheap it’s ridiculous

sho 3 days ago||
All such sites are data harvesting operations. They'll collect your transcripts and sell that data to model companies to train on. It's a big business.

I occasionally get my agents to do sensitive things; I'm not comfortable having my transcripts collected and sold, so I don't use them. They say they anonymize them but who can ever tell? Not for me, thanks.

dimbletimbers 3 days ago||
That there are people like you in a world with starving children sincerely turns my stomach.
tikimcfee 3 days ago|||
There really is no excuse, is there?

This is my daily intrusive thought. "Why the hell am I doing any of this? Why am I not yelling louder at people that have so much and give so little?"

This website is full of people that could save millions of human lives in aggregate, but choose not to and actively argue against the idea because, and I do swear it's a damned curse at this point, "there is no incentive to do it."

I'm not even remotely rich. I have no "savings" or "investments". Yet I have a comfortable life in a house with access to food and care as I need. Sometimes I really hate it.

randysalami 3 days ago|||
To your last part, then you’re ok man. Sounds like you have your kindness and empathy intact. It sounds like given the avenue, you would organize for what is right. You have perspective but don’t let it consume you. You need to be healthy because if you care, there might be a chance in the future where you can put that care toward change. And you need to be in your best state to have the largest impact.

There are many people in this world who have more, view people as dirt, and dedicate their lives to keeping people down. Good, kind people who are disempowered by a system that betrayed us all are not at fault. Feel better man.

tikimcfee 2 days ago||
I hope you regularly have people in your life that do this for you. Thank you. Just thank you.
tuesdaynight 3 days ago|||
You cannot change the world, you need to accept that. However, you can have a hell of an impact on your surroundings, like your close family, neighborhood or city. Focus on that. Social media made us forget that.
tikimcfee 2 days ago||
You're right. And thank you. Sincerely.
tuesdaynight 3 days ago|||
If that is the case, how do you use HN or any social media without vomiting all day?
bix6 4 days ago||
> he’s suffered from “cyber psychosis” and sometimes barely sleeps

Sleep is one of the most important things in the world. Why not have the agents work while you sleep?

hackyhacky 4 days ago||
> Why not have the agents work while you sleep?

Even better, why not have the agents sleep for you?

EDIT: for those who say this is not realistic, I've had Claude sleep for 10 hours in just 30 seconds. Saved me an entire night.

Freedom2 3 days ago||
Care to share your agent setup and harness? I've been trying to do something similar but my Claude only sleeps for about 2 hours before waking up.
hackyhacky 3 days ago|||
I use a supervising agent, so if my sleeping agent has insomnia, the supervisor puts it back to sleep. It's helpful to have the supervisor put on relaxing music or read it something boring [1].

[1] https://www.amazon.com/Million-Plus-Random-Digits-Symbols-Gu...

r_lee 3 days ago|||
could you make a skill for this? Thanks
trog 3 days ago|||
I can't tell if posts like this are parody or serious
zombot 3 days ago||
Even if they're parody (this one is), there are enough people now who take them seriously and put them into practice. I have never seen any other tech that surfaces that amount of idiocy.
thewhitetulip 2 days ago||
Why put an agent to sleep? Store their memory in a file and kill the agent

Resume it later.

cozzyd 3 days ago|||
It helps to increase your network latency
thephyber 4 days ago|||
If his brain is the thing malfunctioning, then his brain may not be capable of (1) correctly diagnosing the problem as a lack of sleep or (2) honestly prescribing "do things to get better sleep" as the fix.

People in psychosis don't exactly weigh all of the options with a level head. He may not recognize that he has "cyber psychosis" or that his lack of sleep is a bad thing.

killingtime74 3 days ago|||
If he was good at it, he would be sleeping more because you would be doing less work.. The fact that he's sleeping less means he's not as good as optimizing his agents as he thinks he is.
Gud 3 days ago||
Or, he is operating more agents by staying awake longer.

Don’t make me defend Garry Tan…

itishappy 4 days ago||
That's probably exactly why. Some of my latest nights have been attempting to prepare a long-running overnight task for an agent.

It was productive, but as you say, it's dangerous to gamble with sleep.

stego-tech 4 days ago||
Headline aside, I agree with him wholeheartedly that the future of AI is personal agents, and that costs have to come down for that to happen.

Not cloud costs, though; consumer costs. These agents must run on-device for privacy protections, because anything less will be a global non-starter. That means we need models that excel on phones, tablets, laptops, and desktops; we need home compute modules to run larger, “frontier”-class models for bigger tasks but without guzzling electricity (the Mac Mini’s power envelope is an ideal target); we need smart harnesses that can foist off inference to bigger models elsewhere on your private network of devices as needed without the user prompting for specific thinking modes or model names. All of this has to happen automatically, privately, securely, without leaking data to advertisers or surveillance companies.

It’s hard work, but it’s definitely the future of AI. I would argue the business case is solved with being able to build bespoke stacks of kit and run models through neocloud providers with ZDR policies. It’s the consumer angle that’s hard to crack, because everyone wants a repeat of Web 2.0 for ad-dollars instead of a privacy-centric modern tech stack that forces companies into lower revenue streams.

Dr_Birdbrain 4 days ago||
I don’t think the privacy-centric vision is going to happen. Very few non-tech people care enough about their privacy to figure out the necessary infrastructure.

The future of personal assistants is most likely akin to Muse Spark, and yes I expect Meta is training on all of those interactions and using them to target ads.

randysalami 3 days ago|||
Had an idea for rich people where they buy their own AI server. The value add is the handling of hardware and software is all provided by the company. It’s a luxury experience like the iPhone so inherently privacy focused. It’s E2E so non-technical users just see AI at the end delivered in the best way possible with any customizations they want. You build the most comprehensive profile on their life which every AI company would love but it’s possible because you’re actually privacy-focused. Call it MyAI.
argee 4 days ago||
> because anything less will be a global non-starter.

I beg to differ.

    "People just submitted it. I don't know why. They 'trust me.' Dumb fucks."
    - Mark Zuckerberg
ks2048 4 days ago||
YC seems big on quantitative metrics. Is there anything that says he is more efficient than 3 or 4 years ago. Is YC as a whole?
bwfan123 3 days ago||
> Is there anything that says he is more efficient than 3 or 4 years ago.

This is a difficult question to answer ! I would ask a related question which is equally hard. Has AI-use increased your human cognitive capability or decreased it ?

__s 3 days ago|||
Decreased it. I no longer carry the entire code base in my head. Used to be someone could describe issue to me & I could know exact line where bug was. Sometimes laying in bed I'd realize some line was wrong

I accept this loss because the productivity is there. & hope to retire in a few years if things don't go south. For people entering the field I worry

chrisandchris 1 day ago|||
Is it? For 200k, he has to have the output of 2 humans, otherwise it would also work to "buy" a human for 200k/year.

That's where I struggle - when I would spend 200k/year on AI, i expect me to deliver at least 1 human output more than before.

asdff 3 days ago||
He will say he is and that will be the end of it.
up2isomorphism 4 days ago||
So what has he built?
qwr1 4 days ago||
"Garry's List" for dark money (this is an established political term, look it up!) donations. Basically you can donate anonymously to a SuperPac.

Software? I'm not aware of anything.

meindnoch 4 days ago|||
Psychosis?
dgellow 3 days ago|||
Markdown files
jgalt212 4 days ago|||
a bubble.
Jtsummers 4 days ago|||
A site where he complains about rich people being charitable, among other things.
georgemcbay 4 days ago|||
Looks like this is getting downvoted, but it is absolutely true.

Garry Tan is fully aligned with Elon Musk in going after MacKenzie Scott's charitable giving, making spurious arguments that she's doing it in the wrong way when they are all just running cover for the fact that she's one of the few at that level of wealth being charitable at all these days.

Silly woman, she should give her money away the right way, which I guess is by attempting to buy political power.

Jtsummers 4 days ago|||
https://news.ycombinator.com/item?id=47042593 - HN discussion (5 comments) on that particular rant of his. And it looks like you were one of the few people to comment on it, so really this is for other people who are missing the context of our comments.

https://garryslist.org/posts/mackenzie-scott-s-26-billion-su... - The rant itself.

rsynnott 2 days ago|||
Getting an LLM to _write a blog_ for you is really bizarre behaviour. I mean, really, why bother?
Jtsummers 2 days ago||
I'm sure one of his agents could answer that question if you posed it to them.
lovich 3 days ago|||
I can’t remember with enough clarity if it was obvious when this was published but holy hell was this obviously AI written

> This isn’t generosity. It’s negligence at scale.

Is when I realized I was wasting my time reading the article

Hikikomori 3 days ago|||
Also goes to the same weird SV church that started because of Thiel and where he held the Greta is the anti Christ talk.
asdff 3 days ago||
The funniest thing about thiel and his antichrist obsession is how well he fits the description of antichrist
bitwize 3 days ago|||
1920s, Henry Ford: "I want to build automobiles any man can afford, even the workmen in one of my factories."

2020s, techbros: "Here's why it's a huge problem for non-billionaires to have things."

mrguyorama 2 days ago||
Um. Here's what Henry Ford was actually doing in the 1920s:

https://en.wikipedia.org/wiki/The_Dearborn_Independent

The robber barons weren't better or more moral. They were afraid of a powerful US government that brought them to heel under popular public sentiment.

That's all it takes to have good things.

georgemcbay 4 days ago|||
> So what has he built?

"Garry, this is a text file".

https://www.youtube.com/watch?v=Q6nem-F8AG8

gbnwl 2 days ago||
Larry, I'm on DuckTales.
vrganj 4 days ago||
Finally, the perfect yes-man, the thing execs and VCs always wanted.
vib_z 2 days ago||
That's a lot of money for one person..I wonder how he manages all his agents and not go insane?

It's hard for me to burn all my weekly limits of claude ultra, codex pro and grok bot 100$ plans on a weekly basis - they are generous for daily use.

jgalt212 3 days ago||
His tools, gstack, are 360K lines of code. That's probably a lot of tokens and context.

  git clone https://github.com/garrytan/gstack
  cd gstack/
  git ls-files | xargs wc -l
dgellow 3 days ago||
Markdown, not code
vips7L 3 days ago||
Look at this guy using shell commands instead of asking his agent to count the lines. You’re going to get left behind bro! Your boss won’t pay you to do that!
jgalt212 2 days ago||
The funny thing is I asked an AI how to do this. And then I ran it myself and learnt something!
vips7L 2 days ago||
Check out the cloc tool. It’ll do it automatically and categorize the type of line it’s pretty cool.
nikolay 2 days ago|
It looks like Matt Van Horn, who I've met when he was at the original Digg, also is contributing to all kinds of projects on GitHub and releasing his own. Coding agents could be a curse for a few, and a blessing for many.
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