Apple cuts engineers' daily AI budget to $200
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According to Bloomberg, Apple in October lowered the daily AI spending cap for some engineers from $300 to $200, and plans to cut it further to $100; some non-technical teams have limits as low as $25. Employees who need higher limits can request an exception from management. Apple allows employees to use models such as Claude, ChatGPT and Gemini. The report says some teams will be required to switch to cheaper models or on-device AI. The report notes that earlier this year Apple encouraged employees to use AI as much as possible, but as token bills came due, the company began tightening quotas. Some employees said few people had previously hit the $300 cap.
AI overview based on source reports · Updated 12 hr ago
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- The DecoderApple slashes internal AI budgets, with deeper cuts still planned
According to Bloomberg, Apple cut some engineers' daily token budget from $300 to $200 last month, with plans to potentially lower it to $100 a day and as low as $25 for some non-technical teams, and employees needing more can request exceptions from management. Employees have access to Anthropic's Claude, OpenAI's ChatGPT, and Google's Gemini, and some teams will be shifted to cheaper models or AI that runs locally on devices. The cuts fit the direction of new CEO John Ternus, who has pushed to make the company leaner, even as Apple's R&D spending jumped 32 percent in fiscal year 2026, driven by higher infrastructure and AI costs.
- TechCrunch · AIApple is reportedly cutting budgets for its internal AI usage
Bloomberg reported that Apple lowered the daily AI spending cap for its engineering teams from $300 to $200 in October, with some allowances reportedly falling to $100 a day and a limit as low as $25 a day being weighed outside engineering. TechCrunch has reached out to Apple for comment. The report follows a broader pullback in which companies that had pushed staff to use AI heavily began rationing tokens as bills came due.
- Hacker News AIApple Is Putting Employees on an AI Budget
Bloomberg reports that Apple is curtailing employee AI use to cut costs, limiting some engineers to $200 per day for AI spending in October, down from $300, with possible further cuts to $100 and some teams capped at $25. Apple is asking some teams to use less expensive models or switch to on-device AI, and employees needing more can request increases from executives. Some Apple employees told Bloomberg that few were using their full $300 daily limit, so the savings may be small.
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