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Apple Cuts Employee AI Budgets in Cost-Control Push, Bloomberg News Reports
Apple is tightening AI budgets as some engineers’ daily allowances fall to $200 and further cuts could reach $100, Bloomberg reported.
- On Wednesday, Apple reduced daily AI spending allowances for some engineers to $200 from $300, Bloomberg News reported, as part of a broader effort to rein in costs.
- Following CEO John Ternus's push for a leaner organization, Apple's research and development expenses rose 32% to $45.8 billion this fiscal year, driven by higher infrastructure and AI costs.
- Some non-engineering groups currently face a $100 daily cap, which Apple has considered reducing to as little as $25. Employees needing greater access to ChatGPT, Claude, or Gemini may seek exemptions from senior leadership.
- Reactions among staff remain mixed; some note few workers utilized their full $300 allowance, while others worry the cuts signal broader cost-cutting and potential layoffs following Apple's August job cuts of over 200 positions.
- Across the technology sector, industry peers are similarly capping staff AI use as costs mount; Microsoft set division-level budgets in July, Tesla caps staff at $200 a week, and Uber limits coding tools to $1,500 a month.
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Apple cuts employee AI budgets in cost-control push, Bloomberg News reports
·London, United Kingdom
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Apple cuts engineers' daily AI budgets as it reins in spending
Apple cut the daily AI spending cap for some engineers from $300 to $200 last month and plans further cuts, Bloomberg reports. It comes as CEO John Ternus pushes for a leaner Apple, while the company’s R&D costs rose 32% on AI and infrastructure. Apple has cut how much some engineers can spend on AI […] This story continues at The Next Web
·Amsterdam, Netherlands (Kingdom of the)
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Report: Apple reduces employees’ AI token allowances as Ternus moves to cut costs
Bloomberg reports that Apple has begun reducing employees’ daily AI spending limits, with some engineers seeing their allowances cut from $300 to $200, and further reductions planned across multiple teams. Here are the details. more…
·Cupertino, United States
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Coverage Details
Total News Sources12
Leaning Left1Leaning Right1Center6Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
13%
C 75%
12%
Factuality
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