Amazon spent $1.8 million on a failed AI project, and didn't notice the overrun for five months

Jul 31, 2026 - 11:30
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Amazon spent $1.8 million on a failed AI project, and didn't notice the overrun for five months

In one case, Amazon spent $1.8 million on a project that used Anthropic's Claude Sonnet model to match author information with product listings. The system ultimately failed, and spending exceeded the original budget by 860%. The issue went undetected for five months.

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