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Applied AI·June 30, 2026·1 min read

The Token Budget Problem Nobody Is Talking About (Matan Grinberg, Co-Founder & CEO of Factory)

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Factory’s “token budget” framing captures the new constraint for AI-native software—your unit economics live or die on how efficiently you spend context and inference, not just engineer hours. Product and infra leads should be instrumenting token usage per feature now and treating it like a P&L line item, with hard caps, optimizations, and design tradeoffs baked in.