Apple slashes internal AI budgets, with deeper cuts still planned

Tech companies are cutting internal AI spending, and Apple is the latest to follow suit. According to Bloomberg, Apple slashed the daily token budget for some engineers last month from $300 to $200. More cuts are planned, potentially dropping to $100 a day, and as low as $25 for some non-technical teams. Employees who need more can request exceptions from management.

Apple employees have access to services like Anthropic's Claude, OpenAI's ChatGPT, and Google's Gemini, Bloomberg reports. Some teams will be shifted to cheaper models or AI that runs locally on devices. The cuts fit the direction set by Apple's new CEO John Ternus, who's been pushing to make the company leaner. At the same time, Apple's R&D spending jumped 32 percent in fiscal year 2026, driven by higher infrastructure and AI costs.

Internal reactions are mixed, according to Bloomberg. Some employees see the old limits as overly generous to begin with. Others worry the cost-cutting could be a prelude to layoffs. Apple isn't alone here: Microsoft, Tesla, Uber, and Meta have all recently capped internal AI spending as well.

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