Apple cuts daily AI budgets for employees amid rising costs, asks staff to use cheaper models: Report
Apple is reportedly reducing the amount its employees can spend on AI tools as the company looks to control rising costs.
Apple recently lowered the daily AI spending limit for some engineers from $300 to $200.
It is also considering further cuts, which could bring the daily allowance down to as little as $100 for some engineering teams.
Apple is reportedly reducing the amount its employees can spend on artificial intelligence (AI) tools as the company looks to control rising costs. According to a Bloomberg report, the company recently lowered the daily AI spending limit for some engineers from $300 to $200. It is also considering further cuts, which could bring the daily allowance down to as little as $100 for some engineering teams. The move comes as Apple is encouraging employees to use AI more widely in their work. However, the company is also trying to reduce expenses linked to the technology.
The company is considering similar reductions for teams outside engineering. These employees currently have a daily spending limit of around $100. Apple may lower this amount to as little as $25 for some teams, according to the report. However, employees who need higher limits for their work can request an exemption from senior leadership.
The spending limits cover tokens, which are units of text and data processed by AI models. AI companies generally charge customers based on the number of tokens their models use. More advanced models and complex tasks, such as writing or fixing software code, can consume more tokens and increase costs.
The decision has received mixed reactions from Apple employees. According to the report, some believe the earlier $300 daily limit was too high, as many workers did not use their full allowance. Others see the move as part of a wider cost-cutting effort. This has also raised concerns about possible job cuts and changes within the company.
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Apple's spending on AI has increased despite these efforts to control costs. The company reported a 32% rise in research and development expenses in fiscal year 2026, mainly due to higher infrastructure and AI-related costs.
Apple employees currently have access to several AI tools, including Anthropic's Claude, OpenAI's ChatGPT and Google's Gemini. Some teams are now being asked to use cheaper AI models or models that run directly on devices.
Apple is not the only technology company looking to reduce AI expenses. Microsoft has also tightened its internal AI spending limits. Tesla has introduced a $200 weekly limit for employee AI usage, while Uber has capped spending on individual AI coding tools at $1,500 per month. Meta also introduced token budgets and encouraged employees to use its own AI tools.
The latest move highlights how technology companies are trying to balance wider AI adoption with the growing cost of using these tools.