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Apple 1 min read

Apple Cuts Internal AI Usage Budgets in Move to Reduce Spending

Source: Bloomberg
Customers wait in line at an Apple store.  Photographer: Paul Yeung/Bloomberg
Customers wait in line at an Apple store. Photographer: Paul Yeung/Bloomberg

Apple Inc. is reducing employee budgets for artificial intelligence usage as part of a cost-cutting effort, even as the company seeks to put AI at the center of its operations.

Last month, Apple quietly lowered the daily spending cap for some engineers using AI models to $200 from $300, according to people with knowledge of the change. The company is now planning further cuts for some engineering teams, potentially reducing their daily allowances to as little as $100, said the people, who asked not to be identified because the discussions are private.

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