Y Combinator’s Garry Tan Says He May Spend $200,000 a Year on AI Tokens, Warns of ‘Cyber Psychosis’ from Endless Agent Use

Y Combinator partner Garry Tan revealed that his AI token consumption could reach up to $200,000 per year, underscoring how personal use of AI tools is intensifying among technology investors.

In an upcoming episode of Walter Isaacson’s podcast, The Builders, slated for Tuesday, Tan quipped that his avid use of AI “agents” has produced what he dubs “cyber psychosis,” noting sleepless nights while testing the technology.

His remarks arrive as entrepreneurs and venture capitalists increasingly embed generative AI assistants into everyday tasks—whether writing code or producing market analyses. Token consumption, the units that drive models such as OpenAI’s GPT, can accumulate rapidly when agents operate nonstop, a situation reflected in Tan’s budget.

The partner’s disclosure offers a tangible example of AI services shifting from experimental gadgets to core infrastructure for certain users. Although the $200,000 sum pertains to him personally, it echoes industry data showing rising corporate AI expenditures, spurred by demands for swift prototyping and a competitive edge.

His “cyber psychosis” comment also highlights a rarely addressed consequence: the mental fatigue from perpetual AI engagement. Specialists point out that although AI can enhance efficiency, an unending flow of recommendations and results can erode work‑life boundaries and cause exhaustion. Tan’s openness might spark a wider dialogue on sustainable AI practices among tech professionals.

When the episode of The Builders is broadcast, listeners are likely to hear Tan detail his workflow, the particular agents he depends on, and his method of weighing advantages against expenses. Observers will watch to determine if his spending marks a tipping point for AI adoption or simply stands as an exception among venture capitalists.