Y Combinator Partner Garry Tan Splurges on AI Tokens, Claims ‘Cyber Psychosis’ From Constant Agent Use

Y Combinator partner Garry Tan disclosed that he may be spending as much as $200,000 annually on AI token usage, a figure that highlights the growing intensity of personal AI tool adoption among tech investors.

During a forthcoming episode of Walter Isaacson’s podcast, The Builders, scheduled for release on Tuesday, Tan joked that his enthusiasm for AI “agents” has led to what he calls “cyber psychosis,” describing nights of little sleep as he experiments with the technology.

Tan’s comments come amid a broader trend where entrepreneurs and venture capitalists are integrating generative AI assistants into daily workflows, from drafting code to generating market analyses. The cost of token consumption—units that power models like OpenAI’s GPT—can add up quickly when agents are run continuously, a reality Tan’s budget now reflects.

The Y Combinator partner’s admission provides a concrete illustration of how AI services are moving from experimental tools to essential infrastructure for some. While the $200,000 figure is personal, it mirrors industry reports that corporate AI spend is climbing, driven by the need for rapid prototyping and competitive advantage.

Tan’s “cyber psychosis” remark also underscores a less discussed side effect: the mental strain of constant AI interaction. Experts note that while AI can boost productivity, the nonstop stream of suggestions and outputs can blur work‑life boundaries, leading to fatigue. Tan’s candidness may prompt a broader conversation about sustainable AI usage among high‑tech professionals.

As the episode of The Builders airs, listeners can expect Tan to elaborate on his workflow, the specific agents he relies on, and how he balances the benefits against the costs. Observers will be watching to see whether his spending pattern signals a tipping point for AI adoption or remains an outlier among venture capitalists.