Apple cuts internal AI budget, daily token allowance for some engineers drops from $300 to $200
According to Bloomberg, Apple last month lowered the daily token budget for some engineers from $300 to $200, and plans to reduce it further to $100, with some non-technical teams potentially as low as $25; employees who need more allowance can apply to management for an exception. Apple employees can use Anthropic's Claude, OpenAI's ChatGPT and Google's Gemini, and some teams will shift to cheaper models or AI running locally on-device. The cuts align with new CEO John Ternus's push to streamline the company, while Apple's fiscal 2026 R&D spending grew 32% due to rising infrastructure and AI costs; Microsoft, Tesla, Uber and Meta have also recently limited internal AI spending.
Why read this
AI score 62
The original article provides specific figures and team-level differences in Apple's internal AI token budget cuts, which can be compared with similar cost-cutting moves at Microsoft, Meta and other companies.
Topics
Body
Tech companies are cutting internal AI spending, and Apple is the latest to follow suit. According to Bloomberg , Apple slashed the daily token budget for some engineers last month from $300 to $200. More cuts are planned, potentially dropping to $100 a day, and as low as $25 for some non-technical teams. Employees who need more can request exceptions from management.
Apple employees have access to services like Anthropic's Claude, OpenAI's ChatGPT, and Google's Gemini, Bloomberg reports. Some teams will be shifted to cheaper models or AI that runs locally on devices. The cuts fit the direction set by Apple's new CEO John Ternus, who's been pushing to make the company leaner. At the same time, Apple's R&D spending jumped 32 percent in fiscal year 2026, driven by higher infrastructure and AI costs.
Internal reactions are mixed, according to Bloomberg. Some employees see the old limits as overly generous to begin with. Others worry the cost-cutting could be a prelude to layoffs. Apple isn't alone here: Microsoft, Tesla, Uber, and Meta have all recently capped internal AI spending as well.