Apple is curtailing employee AI use to cut costs, according to Bloomberg. In October, the company limited some engineers to $200 per day for AI spending, down from $300. Further reductions may follow, with daily allowances for some engineers dropping to $100, while many non-engineering groups already face a $100 limit and some teams could be capped at $25.
Apple is encouraging teams to adopt less expensive models or switch to on-device AI, though employees can request budget increases from executives. Engineers receive the largest allowances because AI-assisted coding consumes significant tokens; Apple provides access to Claude, ChatGPT, Gemini, and other models. However, sources say few engineers utilized the full $300 daily limit, suggesting actual savings may be modest.
The AI budget cuts coincide with Apple hiring outside productivity consultants for some divisions, fueling concerns about potential restructuring. CEO John Ternus, who took over on September 1, reportedly aims to flatten corporate hierarchy and reduce bloat to achieve more with fewer people.
Source: MacRumors · Summarized by HeadlinesBriefing