Apple reportedly cuts daily AI budgets for engineering teams

Apple is reportedly cutting the daily amount its engineering teams can spend on AI, Bloomberg reported Wednesday. In October, the company lowered the daily AI spending cap for those teams from $300 to $200, and more cuts are in the works. The change marks a shift for a company that has worked to integrate AI into its engineering processes.

Budget caps and planned reductions

Apple's engineering teams saw their daily AI spending cap fall from $300 to $200 in October, according to Bloomberg. Sources told the outlet that some allowances may fall to $100 a day. Outside engineering, Apple is reportedly weighing a daily limit as low as $25 a day.

Context around AI spending

Earlier this year, companies pushed staff to use AI as much as possible in the name of vaguely defined efficiency gains, a trend described as tokenmaxxing. The frenzy was short-lived as bills for those tokens came due, and companies decided token rationing might be more fiscally sensible. Concerns persist about a gap between what AI costs to build and run and the often unclear productivity gains the technology is supposed to generate.

Apple response

TechCrunch has reached out to Apple for comment. The report comes as Apple has worked to integrate AI into its engineering processes.

Sources: TechCrunch