Uber president says AI spending is getting ‘harder to justify’ | The VergeSkip to main contentThe homepageThe VergeThe Verge logo.The VergeThe Verge logo.TechReviewsScienceEntertainmentAIPolicyNotificationsNotificationsHamburger Navigation ButtonThe homepageThe VergeThe Verge logo.NotificationsNotificationsHamburger Navigation ButtonNavigation DrawerThe VergeThe Verge logo.Login / Sign UpcloseCloseSearchTechExpandAmazonAppleFacebookGoogleMicrosoftSamsungBusinessSee all techReviewsExpandSmart Home ReviewsPhone ReviewsTablet ReviewsHeadphone ReviewsSee all reviewsScienceExpandSpaceEnergyEnvironmentHealthSee all scienceEntertainmentExpandTV ShowsMoviesAudioSee all entertainmentAIExpandOpenAIAnthropicSee all AIPolicyExpandAntitrustPoliticsLawSecuritySee all policyGadgetsExpandLaptopsPhonesTVsHeadphonesSpeakersWearablesSee all gadgetsVerge ShoppingExpandBuying GuidesDealsGift GuidesSee all shoppingGamingExpandXboxPlayStationNintendoSee all gamingStreamingExpandDisneyHBONetflixYouTubeCreatorsSee all streamingTransportationExpandElectric CarsAutonomous CarsRide-sharingScootersSee all transportationFeaturesVerge VideoExpandTikTokYouTubeInstagramPodcastsExpandDecoderThe VergecastVersion HistoryNewslettersArchivesStoreVerge Product UpdatesSubscribeFacebookThreadsInstagramYoutubeRSSThe VergeThe Verge logo.Uber president says AI spending is getting ‘harder to justify’NotificationsNotificationsComments DrawerNotificationsCommentsLoading commentsGetting the conversation ready...TransportationCloseTransportationPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TransportationAICloseAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AIBusinessCloseBusinessPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All BusinessUber president says AI spending is getting ‘harder to justify’There’s no clear connection between AI usage and productivity.There’s no clear connection between AI usage and productivity.by Jess WeatherbedCloseJess WeatherbedNews ReporterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Jess WeatherbedMay 26, 2026, 9:55 AM UTCLinkShareGiftUber president Andrew Macdonald (pictured) says its “hard to draw a line” between AI spending and deliverable features. Photo: Zed Jameson/Bloomberg via Getty ImagesJess WeatherbedCloseJess WeatherbedPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Jess Weatherbed is a news writer focused on creative industries, computing, and internet culture. Jess started her career at TechRadar, covering news and hardware reviews.After reportedly exhausting its annual AI budget just four months into 2026, Uber is now questioning whether it’s actually seeing meaningful returns on its investments. In an interview with Rapid Response, Uber president and chief operating officer Andrew Macdonald said the company isn’t seeing a connection between rising token consumption for Claude Code and more useful features being delivered to consumers.“That link is not there yet, right? I think maybe implicitly there is more that is getting shipped, but it’s very hard to draw a line between one of those stats and, ‘Okay, now we’re actually producing 25 percent more useful consumer features,’” said Macdonald. “I think over the coming quarters and years, maybe that will become clearer, but I think today it’s hard, even if some of the underlying metrics are trending in a really astronomical direction.”Uber spent $3.4 billion on research and development efforts in 2025, 9 percent more than it had spent the previous year. Earlier this month, Uber CEO Dara Khosrowshahi said the company was making up for its increasing AI investments by hiring fewer human employees.“We’re going to have to start talking about token consumption and the associated cost versus headcount,” said Macdonald. “So if you’re not actually able to draw a direct line to how much useful features and functionality you’re shipping to your users, that trade becomes harder to justify.”Follow topics and authors from this story to see more like this in your personalized homepage feed and to receive email updates.Jess WeatherbedCloseJess WeatherbedNews ReporterPosts from this author will be added to your daily email digest and your homepage feed.FollowFollowSee All by Jess WeatherbedAICloseAIPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All AIBusinessCloseBusinessPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All BusinessNewsCloseNewsPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All NewsRide-sharingCloseRide-sharingPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All Ride-sharingTransportationCloseTransportationPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All TransportationUberCloseUberPosts from this topic will be added to your daily email digest and your homepage feed.FollowFollowSee All UberMost PopularMost PopularFerrari reveals its first EV, with design help from Jony IveSennheiser’s new Momentum 5 headphones have upgraded ANC and a replaceable batteryGoogle’s new anything-to-anything AI model is wildTHE PEOPLE DO NOT YEARN FOR AUTOMATIONVideoCox Media fined after bragging it spied on users through their phonesThe Verge DailyA free daily digest of the news that matters most.Email (required)Sign UpBy submitting your email, you agree to our Terms and Privacy Notice. 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Uber president and chief operating officer Andrew Macdonald has expressed skepticism regarding the ability to clearly justify the expenditure on artificial intelligence, noting a lack of a discernible link between AI usage and the delivery of meaningful customer features. Macdonald indicated that there is no clear connection between the rising token consumption related to tools like Claude Code and the subsequent delivery of more useful features to consumers. He stated that drawing a direct line between these metrics and achieving tangible results, such as shipping twenty-five percent more useful consumer features, remains difficult.

Macdonald suggests that while underlying metrics may be trending positively, establishing a direct correlation between AI investments and feature delivery is currently challenging. He proposed that the company needs to begin discussing token consumption and associated costs in relation to the features and functionality shipped to users to find a justifiable trade-off. This perspective is set against the backdrop of Uber's substantial investment in the area, having spent $3.4 billion on research and development efforts in 2025, which represented a nine percent increase over the previous year. Furthermore, Uber CEO Dara Khosrowshahi previously commented on managing these increasing AI investments by offsetting them through strategic decisions, such as reducing human headcount. Ultimately, the core challenge facing the company, as articulated by Macdonald, is determining how to effectively measure the return on investment when the direct relationship between AI spending and tangible feature development is not explicitly defined.