Apple has reduced employee budgets for artificial intelligence usage as part of a cost-cutting push, even as it seeks to expand AI across its operations. According to a Bloomberg report, the company last month lowered the daily spending cap for some engineers from $300 to $200. Further cuts are planned for certain engineering teams, potentially bringing daily allowances down to $100. Many non-engineering groups already operate under a $100 daily limit, and Apple has considered reducing that to as little as $25 for some teams. Employees who need higher limits can seek exemptions from senior leadership. The budgets cover tokens used by models such as ChatGPT, Claude, and Gemini. Some teams have been asked to switch to cheaper models or on-device AI. The moves come under new CEO John Ternus, who has pushed for leaner operations. Apple declined to comment.
Apple has reduced employee budgets for artificial intelligence usage as part of a cost-cutting push, even as it seeks to expand AI across its operations. According to a Bloomberg report, the company last month lowered the daily spending cap for some engineers from $300 to $200. Further cuts are planned for certain engineering teams, potentially bringing daily allowances down to $100. Many non-engineering groups already operate under a $100 daily limit, and Apple has considered reducing that to as little as $25 for some teams. Employees who need higher limits can seek exemptions from senior leadership. The budgets cover tokens used by models such as ChatGPT, Claude, and Gemini. Some teams have been asked to switch to cheaper models or on-device AI. The moves come under new CEO John Ternus, who has pushed for leaner operations. Apple declined to comment.