Apple cuts employee AI spending budgets to reduce costs

Summarised from 2 outlets · Updated 5 Nov, 01:40 · Archive

Apple has reduced daily AI spending allowances for employees, with engineering teams' limits cut from $300 to $200 per day.

Apple has curtailed employee AI spending as part of cost-reduction efforts. In October, the company reduced daily AI spending caps for engineering teams from $300 to $200 per day. Further cuts are planned, with some engineers' allowances potentially dropping to $100 daily. Non-engineering groups already face $100 daily limits, and some teams could see spending capped at $25.

Engineers have the largest budgets because using AI for coding consumes significant token volumes. Apple provides staff access to Claude, ChatGPT, Gemini and other models. According to Bloomberg, some Apple employees reported that few were using their full $300 daily allowance, suggesting savings from the cuts may be modest.

Apple is asking teams to switch to less expensive AI models or use on-device solutions instead. Employees needing higher budgets can request increases from executives. The spending cuts come as Apple's new CEO John Ternus, who took over in September, reportedly aims to reduce corporate hierarchy and spending to accomplish more with fewer resources.

How it is being reported

• Apple is reportedly cutting budgets for its internal AI usageThe company is said to be significantly dropping the amount it's spending on AI for its engineering teams.TechCrunch · 5 Nov, 01:26
• Apple is Putting Employees on an AI BudgetApple is curtailing employee AI use to cut costs, reports Bloomberg . In October, Apple limited some engineers to $200 per day for AI spending, down from $300. More cuts could be coming, with daily allowances for some engineers dropping to $100. Many groups outside engineering already have a $100 daily limit, but some teams could have their spending capped at $25. Apple is asking some teams to use less expensive models or switch to on-device AI. Employees who need a bigger budget will be able to ask executives for an increase. Engineers at Apple have the largest budgets because using AI for…MacRumors · 4 Nov, 20:20

In this story: Apple · Claude · ChatGPT · Gemini · Bloomberg · John Ternus

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