Science & Tech · AI · 1 hr ago
Apple Cuts Some Employee Budgets for Third-Party AI Tools
Apple has cut some employees’ budgets for third-party AI tools used in their work.
The tools can help engineers with coding and finding software bugs.
Standard funding reportedly fell from $300 to $200 per engineer, while some budgets were reduced to $100 or as little as $25.
Employees can reportedly ask for more funding when needed, and many engineers had not used their previous $300 allowance in full.
The cuts reflect companies’ efforts to manage AI costs as they assess the value of these tools.
Apple is also developing its own AI models, and some Mac computers can run certain models locally, which may reduce the need for paid services.
Apple has reduced AI spending limits for some employees, citing costs, according to reports by Bloomberg cited in the articles.
In October, some engineering teams’ daily limit fell from $300 to $200.
Some engineers could see their daily allowance reduced to $100, while some non-engineering teams could face a $25 limit.
Apple is asking some teams to use cheaper AI models or on-device AI, and employees can request a higher allowance.
Some employees reportedly were not using their full $300 daily allowance, and the articles say the savings may therefore be small.
- Who
- Apple employees, including engineering teams and other groups.
- What
- Apple has cut or is considering cuts to daily budgets for third-party AI tools.
- When
- Some limits were lowered in October 2026; the reports were published on November 4 and 5, 2026.
- Where
- At Apple; a specific location is not stated.
- Why
- To reduce AI costs, according to the reports.
This story does not have two clearly opposing sides.
Apple lowered some engineering teams’ daily AI spending limit from $300 to $200.
MacRumors and AppleInsider reported the AI budget cuts.
TechCrunch reported the cuts and said Apple had been contacted for comment.
- Previous engineering limit
- $300 per day
- Reduced engineering limit
- $200 per day
- Possible allowance for some engineers
- $100 per day
- Possible limit for some other teams
- $25 per day
- Employee allowance requests
- Employees can ask executives for an increase