Y Combinator CEO has a message for founders worried about burning AI tokens
Y Combinator CEO Garry Tan encourages founders to spend significantly on AI tokens. He believes this approach grants access to future AI capabilities today. Tan suggests using AI agents for tasks and then documenting successful workflows. This method turns instructions into repeatable automated processes for businesses. While some debate this "tokenmaxxing" approach, Tan sees it as an investment.
Y Combinator CEO Garry Tan has advised founders to "burn, baby, burn" when it comes to using large numbers of AI tokens. Speaking on the A16z podcast, Tan argued that founders should not hesitate to spend heavily on AI agents, even if it results in high annual costs. He encouraged them to give themselves permission to use large token budgets when working with AI agents, stating that it can provide access to AI capabilities that will otherwise become available only in the future.
Tan emphasized that by fully loading AI agents with a high number of tokens, founders can effectively "live in 2028." While he acknowledged the expense - which could reach tens of thousands of dollars per year for full-capacity AI agents - Tan argued that for founders and CEOs experimenting with AI-driven workflows, this spending can be justified.
He suggested using AI agents for tasks first, then documenting successful workflows as instructions that can be automated in the future. However, Tan's approach contrasts with criticism of "tokenmaxxing," where companies deliberately allow AI systems to consume large numbers of tokens instead of focusing on lower usage and costs.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.