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Cloudflare CTO Enforces AI Usage Limits Amid Industry-Wide Cost Crisis — Internal Claude Code Licenses Cut
Cloudflare's CTO is enforcing stricter AI usage limits across the company after AI-related costs spiked sharply, with reports indicating the company cancelled most internal Claude Code licenses. The move is part of a broader pattern: Cloudflare also laid off 1,100 employees earlier in 2026 as AI infrastructure costs pressured margins. For developers building on Cloudflare's AI Gateway and Workers AI, the platform is simultaneously imposing tighter rate limits and log caps on external-facing AI products.
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