Apple reportedly cutting budgets for internal AI usage as costs rise | techcrunch

Engineering limits lowered

Apple lowered its engineering teams’ daily AI spending cap from $300 to $200 in October, Bloomberg reported Wednesday. The company has also been working to bring AI into its engineering processes.

Some engineering allowances may be reduced further to $100 a day, sources told Bloomberg. Apple is reportedly considering a daily limit of as little as $25 for workers outside engineering.

Companies rethink AI spending

Earlier this year, companies encouraged employees to use AI heavily, a trend described as “tokenmaxxing.” The push was framed around efficiency gains, but those gains were often not clearly defined. As bills for AI tokens arrived, companies began considering rationing their use as a more financially sensible approach.

Costs and gains in question

Questions remain about the difference between the cost of building and running AI systems and the productivity improvements they are expected to deliver. The reported Apple limits reflect broader scrutiny of AI expenses. The article does not specify which engineering teams will receive the lower allowances or when the additional cuts may take effect.