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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 commentspage 2
kats 1 day ago|
This thread is so full of negativity and cynicism. It's useless.
anoojb 4 days ago||
The common trope is, "keep an eye on what the rich want."

Gary is rich. Let's assume now, he spends between $10-20K/month USD on tokens. Whether he gets overwhelming tangible value out of that token spend is immaterial.

What he's getting out of it is a mix of social signaling value and actual perceived productivity. I don't know, but I doubt he has measuring the ROI on the token investment.

Much like someone gets various kinds of value out of a a personal tutor for their child. Or a high powered executive who continues to request budget for a "Chief of Staff" and related personnel in 2026.

The question is whether this is signal, or noise. Will everyone who has the budget aspire to spend money on tokens as a subtle way of projecting value with some tangible benefit? How long of a runway does this have?

Much like a Chief of Staff office, there's more to manage...but you you get some tangible benefit by having people to whom you can [in theory] delegate tasks and trust they will be completed. To some degree none of this matters, value is in the eye of the beholder.

What a time to be alive. Rich people continue to spend money with abandon, just on different things.

Edit: I work at technology company. If I were spending $10-20K/month USD in tokens I would immediately get flagged by Finance and receive a note from my EVPs Chief of Staff/Business Admin. My usage and prompts would get audited and I would be asked to create a report justifying the business impact of the spend.

rcko 3 days ago||
Note, however, that Garry also holds a much longer lever in his hands. It's very likely that he does get a huge ROI from the token spend because if it helps him make just one slightly better investment decision per year, that's millions in return.
anoojb 3 days ago||
The rich always have leverage. The questions I'm asking are broader market questions...

Does it matter that he's spending this much money on tokens? What's the derived signal? Why isn't he spending more?! Spend on intelligence seems to have no limit, and he's rich after all right? What's the limiting rate of return on token spend for the rich? Does Gary represent an archetype of other rich people who also want to spend money on tokens at that rate? ...if not more?!

bix6 3 days ago||
He has a vested interest in hyping AI / spend because YC overwhelmingly invests in AI startups.
bluegatty 3 days ago||
the question is not spend it's outcome.

what has he produced with that?

fakedang 3 days ago||
Revenue for Anthropic to use in their S-1.
bluegatty 3 days ago||
what does that have to do with anything?

Gary spending 250K/year on nothing is not strongly related to pros using $200/plan to do much better.

fakedang 2 days ago||
Still contributes to their topline.
whattheheckheck 3 days ago|||
You haven't seen tanstack? He presented to Stanford he wanted to scale that idea to an entire organization not just a solo founder.

He's gonna hit the halting problem

bluegatty 3 days ago||
it's a hulking pile of garbage.
clickety_clack 3 days ago||
He must have the best automatic daily slack summary.
bluegatty 3 days ago||
Probably not even that, there are off the shelf things.

I don't think he has produced anything.

Tokenmaxxing was a dumb trend he has not figured out he's out of the loop yet.

_-_-__-_-_- 3 days ago||
As someone who has only ever used these free AI agents and who is not a software developer or computer scientist by trade, could someone please explain the concepts of tokens and their worth and harnesses and what exactly all of those things accomplish?
ygjb 3 days ago||
None of these are effective questions for this forum. You should copy and paste your post and my response into your free chatbot of choice.

Evaluate the original post and response and build a high level learning plan with citations and references that covers each of the topics in the original post. Start the learning plan with an overview of effective prompting techniques with specific examples to research individual topics.

void-pointer 3 days ago|||
A Token is a unit of data used by large language models. Tokens used to be pretty analogous to 3-6 letters of English text, but things have become more complicated with the advent of multi-modal generation

Large language models are usually priced on MTok or “million tokens”. You’ll often see LLMs priced at $X/MTok for input and $Y/MTok for output.

A harness is a program that interfaces with a large language model and provides it tools and context to achieve a goal. Codex and Claude Code are good examples of harnesses.

What exactly all of this accomplishes is not something I can answer for you :)

x-complexity 3 days ago||
> the concepts of tokens

Tokens are what you get when you have to map a chunk of text to specific numbers, so that the LLM can actually work with it.

https://platform.openai.com/tokenizer

Reducetively speaking:

[Your text] --> [List of numbers (tokens)] --> [List of [List of numbers describing a concept/term/thing/job/item/etc] (embedding)]

That final thing (List of embeddings) is what gets fed into the LLM, so that it can produce (List of embeddings most likely to follow afterwards), which is then turned back into text.

> and their worth

Tokens are priced based on the model you're using. In general, expect to pay more when you need to use larger models. (Note: Exceptions exist, but treat them as exceptions)

The space as it is now prices tokens based on:

- how many tokens it needs to process (input),

- how many it needs to generate (output), and

- how often you send the same chunks of text that their system already has on file (cached).

> and harnesses

A harness is something that adds in tools & directions for the LLM, so that it can do its tasks. In a dumbed-down semi-visual summary:

---

[Text about what the LLM should be & what they're allowed/not allowed to do]

[Text about available tools & how to call them]

[Your text here]

---

The harness, if its part of a program/app, then looks at what the models generate in response, and does the (file writing/reading, tool calls, web searches, subagents, etc.), based on the formatted output that the LLMs should produce.

> and what exactly all of those things accomplish

Depends on the goal of the user. Some use them as assistants, most use it for coding.

https://openrouter.ai/rankings?utm_source=share&utm_medium=c...

A_D_E_P_T 4 days ago||
Come on. If you have a Claude Max 20x plan ($200/month) you're massively subsidized and your API cost is anywhere from $5000-14000 per month.

(Figures vary, see e.g. https://www.linkedin.com/posts/christham_4-weeks-on-claude-2... for $13,700/mo.)

If you hit your limits on two Max 20x plans, you could very well be exceeding $300k/yr in token use at current API rates.

pu_pe 4 days ago|
Is that how these figures are being calculated? Because if so, that's laughable. I always interpret those to mean that they are literally paying $200k/year to Anthropic, not ~$2k.
TiredOfLife 3 days ago||
Not only that. They simply multiply tokens used with API price per token, but ignore that about 90% of tokens are cached ones that are significantly cheaper.
asdff 3 days ago||
Api would be cheaper still if there were no subscriptions
2001zhaozhao 3 days ago||
This figure really depends on whether it's API rates or actual spend. One Claude Ultra subscription ($2400/year) gives you nearly $100k a year in tokens if fully utilized.
stuaxo 3 days ago||
Anyone worked out the carbon footprint of that ?
m3kw9 4 days ago||
I wonder how many of those agents get lost in a loop and just uses tokens, asking the same questions over and over and responding and asking
asdff 3 days ago|
I wonder how much this happens in these huge multi agent jobs. Two agents quietly changing the same file back and forth.
flyingsky 3 days ago||
Might make sense for him to invest in hosting his own models locally. Prices are only gonna keep going up.
Vishal_Max 3 days ago|
For a normal person outside the Startup world this news is super confusing and frustrating while most people who already use ai heavily think this is nothing and they are surprised by the fact that he is not even spending that much!
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