There’s no question that every company needs to include AI in its tech budget. But as costs climb, it’s worth taking another look at what your company is spending and how to make it more reasonable. Cost structures that charge per “seat” on an enterprise model, or per agent created, may be ways to quantify use, but they can also get expensive quickly. And buying a finite number of “tokens” for amounts of AI compute that are used can also end badly. Uber, which used all of its AI budget for the year in just four months, is one example of companies finding themselves losing the tech spending race.

Sameet Gupte, CEO and cofounder of AI platform EvoluteIQ, thinks the best way to charge companies for AI technology is based on the results they get. He believes many companies are moving toward this kind of pricing, and talked to me about how to negotiate with AI companies over price—and determine what’s worth it and what isn’t. An excerpt from our conversation is later in this newsletter.

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Although Kevin Warsh was confirmed as the new Federal Reserve chairman earlier this month, minutes released last week from the Open Market Committee’s April meeting signify President Donald Trump may not get the quick interest rate cuts he wants. The board voted to hold baseline interest rates steady between 3.5% and 3.75%, but according to the minutes, a majority of participants stressed an interest rate increase may be needed if inflation above the Fed’s 2% goal persists.

Board members said the ongoing Iran war has significant implications for employment and inflation, especially as it gets longer. Inflation has continued to creep upwards, hitting a three-year high of 3.8% in April, according to Bureau of Labor Statistics numbers. And while Forbes senior contributor Simon Moore writes that most analysts expect interest rates to hold steady at the Fed’s June meeting—Warsh’s first as chair—the odds are increasing for a hike later in the year.

The long-rumored and highly anticipated mega-IPO of SpaceX is preparing for liftoff. Elon Musk’s space exploration, AI and satellite internet company officially filed paperwork for its IPO last week with a target of becoming publicly traded in June. The company’s valuation could range from $1.75 trillion to $2 trillion, making it the largest IPO of all time.

The IPO filing brought many........

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