Apple reduces internal AI budgets and plans further cuts

Apple has reduced the daily token allowance for some engineers from $300 to $200, according to Bloomberg. The change was made last month, while further reductions are under consideration: the limit could fall to $100 per day, and to as little as $25 for some non-technical teams. Employees requiring additional capacity can seek an exception from management.

Apple staff can use Anthropic's Claude, OpenAI's ChatGPT, and Google's Gemini. Some groups are expected to move to less expensive models or to AI systems operating locally on devices. The budget changes reflect the direction of CEO John Ternus, who has been seeking to make the company leaner.

Apple's research and development spending nevertheless rose 32 percent in fiscal year 2026, with infrastructure and AI costs cited as drivers. Bloomberg reported mixed employee reactions: some considered the previous limits too generous, while others feared the reductions could precede layoffs. Microsoft, Tesla, Uber, and Meta have also recently placed limits on internal AI spending.