What is tokenmaxxing?

Tokenmaxxing is when developers use AI as much as possible with little regard for output, according to the memo. Amazon shut down an internal leaderboard in May after discovering employees were doing this to climb the ranks.

Does Amazon limit how many tokens employees can use?

No. An Amazon spokesperson said the company hasn't instituted caps on employees' token usage.

How does Amazon measure AI's impact on engineer productivity?

Amazon looks at metrics such as 'feature velocity,' which considers how many launches and successful production changes teams make, according to VP and distinguished engineer Marc Brooker.

AI Coding AssistantsTop Companies' AI MovesAI Business & IndustryTop Companies AI5m agoOct 28, 2026, 06:30 JST

Amazon memo calls token usage 'deeply flawed' AI metric

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3 Key Points

What happened
In a memo circulated in September and posted to its website Tuesday, Amazon called token usage, AI adoption rates and code changes 'deeply flawed' measures, and said AI usage should be judged on long-term outcomes.
Why it matters
The guidance signals that Amazon wants engineers to weigh AI spend against actual results rather than raw usage, a shift that could affect how teams justify AI tooling costs amid rising bills.

WHO IT HITSSoftware engineers and engineering managers at Amazon are directly affected, as the memo revises how their roles are defined and how their AI use is evaluated. The guidance may also influence how other companies structure their own AI usage policies.

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Context & Analysis

Amazon's memo arrives as companies across the industry are wrestling with the soaring costs of AI tools and struggling to reliably measure whether the technology delivers a productivity boost or other valuable returns on investment. The company itself has already taken action on this front: in May, it shut down an internal leaderboard after discovering employees were tokenmaxxing to climb the ranks. The memo stops short of telling staffers to ignore metrics like token usage altogether, instead saying they should be considered 'with care and judgment' alongside other data. It also discourages using AI where it doesn't make sense, noting that an engineer who can explain where AI does not yet help their work is demonstrating the judgment the company is asking for. The guidance revises how Amazon defines the role of software development engineers and managers in the age of AI, and reflects a broader effort to tie AI investment to actual business outcomes rather than raw usage.

FAQ

What is tokenmaxxing?: Tokenmaxxing is when developers use AI as much as possible with little regard for output, according to the memo. Amazon shut down an internal leaderboard in May after discovering employees were doing this to climb the ranks.
Does Amazon limit how many tokens employees can use?: No. An Amazon spokesperson said the company hasn't instituted caps on employees' token usage.
How does Amazon measure AI's impact on engineer productivity?: Amazon looks at metrics such as 'feature velocity,' which considers how many launches and successful production changes teams make, according to VP and distinguished engineer Marc Brooker.

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