Turbo AI, a New York-based startup, accidentally spent $30,000 on AI tokens in a single month but believes the investment was justified. The company’s cofounder, Sarthak Dhawan, shared the experience in an as-told-to essay, emphasizing that the high spending occurred during a period of rapid innovation and product development.
Dhawan and his cofounder, Rudy, launched their AI learning tool app in January 2024 while still in college and later dropped out to focus on the business full-time. They prioritize shipping speed over cost management, arguing that slowing down to control token spending would have cost them more in lost momentum.
The startup initially relied on traditional coding methods, but AI tools like Claude Code have transformed their workflow. Dhawan noted that his role has shifted from writing code to reviewing AI-generated code, a change that has led to some atrophying of his coding skills. He acknowledged that engineers using AI tools may lose deep familiarity with their codebases over time.
To reduce costs, Dhawan adjusted settings in Claude Code, which brought token expenses back under control. Despite the financial oversight, he views the high-spending month as a necessary part of innovation.