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Applied AI·June 2, 2026·1 min read

Mercor's CEO says it now spends more on AI tokens than employee salaries

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When a startup spends more on AI tokens than payroll and predicts enterprises will spend more on compute than headcount in five years, it’s saying the labor line item is becoming capex to the cloud. If your P&L doesn’t explicitly model “AI spend as workforce,” you’re flying blind on both margin and hiring strategy.

Applied AI

Internal memo: Meta is scaling back elements of its employee tracking tool, launched in April to help train its AI models, after staff raised concerns (Jyoti Mann/The Information)

Meta walking back parts of its employee tracking tool under internal pressure shows that data hunger now runs headfirst into workforce trust. If you’re training models on employee behavior, assume consent, transparency, and opt-outs are not HR nice-to-haves—they’re existential to your data pipeline.