ASU 2025-06  ·  ASC 350-40  ·  AI Spend Capitalization

Your AI spend is a capital asset.
Start treating it that way.

Allocex sits between your developers and frontier AI models, classifies every token against ASC 350-40 criteria in real time, and produces the audit-ready evidence packages your controller needs to move qualifying costs from the P&L to the balance sheet.

Request a conversation See how it works
50–100%
Annual growth in enterprise frontier AI spend — landing as 100% opex on your P&L today.
2028
Mandatory adoption of ASU 2025-06 for calendar-year companies. The window to establish your methodology is now.
~40%
Of AI API spend at engineering-heavy enterprises is plausibly capitalizable as internal-use software development cost.
The gap

Every CFO has the same problem.
Nobody has built the tool.

FASB's ASU 2025-06 replaced the old stage-based test with a principles-based framework that makes qualifying AI development costs capitalizable. But there is no defensible, audit-ready mechanism to act on it.

Today
  • All AI API spend hits the P&L as opex, regardless of how it was used
  • No project-level attribution means no audit trail
  • FinOps tools stop at visibility — no journal entries, no capitalization workflow
  • Capitalization tools cover payroll, not the fastest-growing cost on your tech budget
With Allocex
  • Every API call tagged to a project in real time — zero developer friction
  • Capex vs. opex classification engine with conservative defaults
  • Audit evidence packages linking each classified call to a committed project
  • Journal entries ready for SAP, Oracle, or NetSuite — drop into your close process
How it works

Three layers. One environment variable.

01 — Proxy

Transparent API layer

Replace your Anthropic, OpenAI, or Google endpoint with one environment variable. Single-digit millisecond overhead. Model choice, streaming, and tool use fully preserved.

02 — Classify

Real-time classification

Each call is enriched with project context from GitHub, Jira, and your IDE. A rules-based engine applies the ASU 2025-06 criteria and classifies every token as capex-eligible or opex.

03 — Report

Audit-ready evidence

Monthly close packages link every capitalized cost to an authorized project. Journal entries formatted for your ERP. A Big 4 co-authored methodology position paper covers the treatment with your auditors.

The math
$144M

A company spending $30M annually on AI APIs, with 40% attributable to committed software development, can move $12M/year from opex to depreciable capex. At a 15× P/E multiple, that is $144M of enterprise value — for a policy change.

Assumes 5-year straight-line amortization. EV impact = annual opex reduction × P/E multiple.

Design partners

We are looking for three.
You might be one of them.

We are working with a small number of enterprises — ideally a bank, an insurer, and a large retailer — who want to co-develop the methodology, work through their first audit cycle together, and set the standard for how this gets done. Free in year one, in exchange for collaboration.

Get in touch info@allocex.com