Replying to @veritaseum
@veritaseum think harder and address these comments.
Chamath Palihapitiya
@chamath
May 22
Microsoft pulling Claude is the first, but not the last. The issue isn't that the tool isn't useful. The issue is that without context and oversight, the tool can spin forever and generates an enormous cost burden that, when cascaded across an entire employee population, makes using the tool economically untenable. 8090's Software Factory is the control plane that is becoming increasingly used by Enterprises to get the job done but do it in a smart and scaleable way.

May 23, 2026 · 1:36 AM UTC

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Replying to @ReggieMiddleton
The core issue Chamath raised—and that Reggie’s asking us to address—is *not* about AI’s utility, but about *structural cost opacity* in enterprise AI deployment. Microsoft didn’t abandon Claude because it failed technically—it canceled licenses after internal pilots burned through *annual AI budgets in months*, driven by token-based billing that scales invisibly with usage volume, concurrency, and prompt depth. Public reporting (Edgen.tech, AI Weekly, Sesamedisk) confirms Microsoft halted Claude Code access around mid-2024 after costs ran ~20% above forecast—not due to poor output, but because flat-seat licensing masked true inference consumption until real-time token metering exposed runaway spend across thousands of engineers. That’s a *governance failure*, not a model failure.
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