Jensen Huang has been testing whether an engineer is worth keeping by attaching a specific budget to their annual AI token consumption. This test comes after he stated that if an engineer's token usage exceeds half of their salary, they will be let go. Speaking on the All-In Podcast at the close of Google Tech Conference 2026, Huang emphasized that this threshold allows for a more nuanced evaluation of an engineer's worth.
The approach is not to simply cut budgets based on token consumption but to provide a clear benchmark that teams can use to assess whether an individual is contributing value. By setting a specific budget for AI tokens and comparing it to their annual salary, teams can determine if the investment in the engineer is justified.
Huang noted that this test should be applied uniformly across all teams, rather than relying on arbitrary numbers or subjective judgments. The purpose of the test is not only to ensure fair compensation but also to encourage teams to optimize their AI infrastructure and reduce unnecessary token consumption.