Friday, Nov 6 | --:--
Back to home

Apple Cuts Some Engineers' Daily AI Budgets to $200 From $300 and Plans Deeper Cuts, Bloomberg Reports

Apple lowered the daily AI spending cap for some engineers to $200 from $300 last month and plans further cuts for some teams to as little as $100 a day, Bloomberg reported on November 4, citing people familiar with the change. Groups outside engineering already capped at $100 could go to $25, and staff can ask senior leaders for exemptions. Apple has not confirmed the report.

Times of AI Desk 3 min read Cupertino View as Markdown
Gritty linocut collage of black tailor's shears above a saffron tape measure cut in two, the short end curling away, with a small torn-paper clipping of the Apple logo.

Apple is putting a meter on how much AI its own staff can use, a sign that even the richest companies are now budgeting AI tools down as well as up. Last month Apple lowered the daily AI spending cap for some engineers to $200 from $300, and it plans further cuts for some engineering teams to as little as $100 a day, Bloomberg reported on November 4, citing people familiar with the change.

Who is affected#

Many groups outside engineering already face a $100 daily cap, and Apple has considered cutting that to as little as $25 for some teams, Bloomberg reported, according to excerpts published by 9to5Mac. Employees who need more can seek exemptions from senior leadership. Apple staff have access to services including Anthropic's Claude, OpenAI's ChatGPT and Google's Gemini, and some teams are being encouraged to use cheaper models or models that run on their own devices, Bloomberg said.

Few workers were using their full $300 daily allowance, Bloomberg's sources said, and some see the cuts as a sign of broader cost-cutting under CEO John Ternus, who is pushing the company to run leaner, Bloomberg has reported.

The bigger picture#

The cuts come as Apple's overall spending rises: research and development expenses climbed 32% to $45.8 billion in fiscal 2026, partly on infrastructure and AI costs, 9to5Mac noted. Other large employers are also narrowing who gets AI coding tools: Goldman Sachs recently limited Claude Code and GitHub to its engineers. Apple's new annual report separately warns that AI agents can act without authorization.

Limits#

  • The report rests on anonymous sources; Apple has not confirmed it. Bloomberg's full article is paywalled, and we relied on its opening and on excerpts quoted by 9to5Mac and Investing.com, which do not add independent reporting.
  • It is not clear which tools the caps cover or how much Apple expects to save.

Sources#

Prior Coverage

Earlier Times of AI reporting on this thread.

Scroll to continue reading