Apple reportedly lowers daily AI spending limits for engineers

Investing.com -- Apple Inc. is reducing employee budgets for artificial intelligence usage as part of a cost-cutting effort, even as the company seeks to put AI at the center of its operations.

Last month, Apple lowered the daily spending cap for some engineers using AI models to $200 from $300, according to a Bloomberg report Wednesday. The company is said to now be planning further cuts for some engineering teams, potentially reducing their daily allowances to as little as $100.

Many groups outside of engineering already face a $100 daily cap, but Apple has reprotedly considered reducing that limit to as little as $25 for some teams. Employees who require higher allowances to perform their jobs will be able to seek exemptions from senior leadership.

The budgets cover tokens, the units of text and other data processed by AI models when handling requests. AI providers typically charge based on the volume of tokens consumed, with more advanced models generally costing more. Complex tasks such as writing and debugging software code can consume large quantities of tokens.

Reactions to the changes internally have reportedly been mixed. Some employees say that few workers were using their full $300 daily allowances, making the previous limits unnecessarily generous. Others see the reductions as a sign of broader cost cutting, adding to concerns about potential layoffs.

Some Apple divisions have hired outside consultants to evaluate their efficiency and operations, fueling employee anxiety about possible restructurings in the future. Chief Executive Officer John Ternus is pushing the company to run faster and leaner, with fewer management layers, Bloomberg News has reported.

The actual savings from the reductions remain unclear, particularly given that some employees weren't approaching their previous limits.

Apple said this week that research and development expenses increased 32% in fiscal year 2026, driven by higher infrastructure and AI costs. Companywide operating expenses jumped 22% to a total of $75.5 billion, or 16% of total net sales.

Apple employees have access to a range of AI services, including Anthropic PBC's Claude, OpenAI's ChatGPT and Google's Gemini. Some teams are being directed to use less expensive models or to rely on AI models that run locally on devices.

Original Article

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