Apple cuts employee AI budgets, with further reductions possible
Some engineers’ daily allowances fell to US$200 in October, Bloomberg reported, while certain teams could face limits of US$25.
Apple lowered daily artificial intelligence spending allowances for some engineers from US$300 to US$200 in October as part of a cost-cutting effort, Bloomberg reported. Further reductions could bring those engineers’ limits to US$100.
Many non-engineering groups already operate under a US$100 daily cap, while some teams could have their allowances reduced to US$25. According to the report, Apple is also asking certain teams to choose cheaper models or run AI on devices. Employees seeking higher limits will be able to request executive approval.
Engineering teams receive the biggest allowances because AI-assisted coding can require substantial token usage. Apple permits staff to work with models including Claude, ChatGPT and Gemini.
Some employees told Bloomberg that few workers exhausted the previous US$300 daily allowance, suggesting the spending restrictions may produce only small savings.
Apple has also brought in external productivity consultants to review some divisions, Bloomberg reported. Those reviews, together with the AI spending restrictions, have prompted concerns about potential restructuring.
