Apple is is putting its employees on a tighter AI budget, as it works to cut costs, reports Bloomberg. In October, Apple began limiting some of its engineers to $200 per day for AI spending, down from $300.
More custs are likely coming, as the publication says its sources tell it that the Cupertino firm is planning further cuts for some engineering teams, potentially reducing their daily allowances to as little as $100. While many groups outside engineering already have a $100 daily limit, some teams could see their spending cut to $25 per day. Apple is also instructing some teams to use less expensive models or make the switch to on-device AI. If an employee feels they need a larger budget they can ask executives for an increase.
AI for coding can consume a large number of tokens, which is why engineers at Apple have the largest AI budgets. Apple allows employees to use Claude, ChatGPT, Gemini, and other models. Some Apple employees told Bloomberg that few of the affected employees were using their full $300 daily limit, so the savings may turn out to be small.
Some employees are worrying that restructuring is in the Apple’s future, as the company has also hired outside productivity consultants for some divisions.
Apple CEO John Ternus, who took over the top slot at Apple on September 1, is reportedly looking to cut bloat in the company, by reducing corporate hierarchy and accomplishing more with fewer employees.
