Apple Sets Daily AI Usage Budget for Employees, Cutting Some Engineers' Allowance from $300 to $200
Apple is limiting employee AI usage to control costs. Starting in October, it will lower the daily AI spending cap for some engineers from $300 to $200, and some engineers' daily allowances may be further reduced to $100. Many teams outside engineering already have a $100 daily limit, and some teams may be capped at $25. Apple is requiring some teams to switch to cheaper models or move toward on-device AI, and employees who need higher budgets can apply to executives. Apple allows employees to use models such as Claude, ChatGPT, and Gemini. Some employees told Bloomberg that few people hit the $300 daily limit, so the savings may be limited.
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The original report discloses that Apple has set daily quotas on engineers' AI usage and is considering further reductions, offering a window into how large companies are controlling model invocation costs.
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Apple 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 coding can consume a large number of tokens. Apple lets employees use Claude, ChatGPT, Gemini, and other models. Some Apple employees told Bloomberg that few were using their full $300 daily limit, so the savings may be small.
Apple has also hired outside productivity consultants for some divisions. Combined with the AI cost cuts, the reviews have fueled worries about possible restructuring.
Apple CEO John Ternus took over on September 1, and he reportedly wants to reduce corporate hierarchy and bloat to accomplish more with fewer people.