Apple is cutting how much its employees can spend on AI each day, with some engineers going from $300 to $200, Bloomberg reports

Apple last month lowered the daily cap on what some engineers can spend on AI models from $300 to $200, and is considering cutting some engineering teams to $100 a day, Bloomberg reported Wednesday, citing people familiar with the matter. Many groups outside engineering already have a $100 daily cap, and Apple has considered lowering that to $25 for some teams. Employees who need more can ask senior leadership for an exception. The budgets are measured in tokens, the units of text and other data that AI models process. Reactions inside were reportedly mixed: some said few people used the full $300, while others read it as a sign of wider cost cutting. Apple did not respond to requests for comment.

Why it matters

A large company rationing staff AI usage shows businesses re-checking what AI costs against what it delivers, which also matters for AI vendors' enterprise revenue.

Sources1

Written by dalao.ai: the title, summary and why it matters are our own words. The original reports are the record; their publishers keep authorship.