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cnbc.com2026-05-29

Tokens or humans? The new corporate trade-off - CNBC

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According to a CNBC report published May 29, 2026, CFOs are increasingly viewing a trade-off between spending on AI tokens and future human headcount. The report states that artificial intelligence is turning out to be far more expensive than enterprises initially expected, leading to budget reallocations.

The report highlights that each new model release from frontier AI labs costs roughly twice as much per token as the model it replaced. This rising cost per token is prompting CFOs to consider trading future headcount for increased token budgets. The article cites unnamed CFOs and enterprise executives who describe this as a new corporate trade-off.

The report frames this dynamic as an emerging trend in corporate budgeting, where AI expenditure is competing directly with hiring plans. It notes that the doubling cost per token from one model generation to the next is a key factor driving this trade-off, as companies grapple with the financial implications of adopting cutting-edge AI.

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