US companies switch to cheaper AI models as costs spiral

US companies are struggling with out-of-control AI bills. Many are now using fewer tokens to get the same work done. Flo Crivello, CEO of San Francisco-based Lindy, says his company was using Anthropic's Claude model and spending more on AI each month than on all employee salaries. Early this month, Lindy switched all its traffic to DeepSeek, expecting to save millions in the coming months. "Don't underestimate AI bills—they can make or break a company," Crivello said. He also noted that Uber, where he worked for five years, is now strictly limiting AI use, setting monthly spending caps of $1,500 for some tools. Jeff Henry from Highspring says the biggest cost spike comes from coding assistants, where developers burn through tokens building new tools. Companies are now using "model routing"—matching tasks to cheaper models instead of always using the most expensive one. Some clients have paused spending until they see a clear return on investment.