Apple is reportedly cutting budgets for its internal AI usage

In Brief

Apple is cutting the daily amount its engineering teams can spend on AI, Bloomberg reported Wednesday. It’s a big change for a company that has worked to integrate the technology into its engineering processes.

In October, Apple lowered the daily AI spending cap for its engineering teams, decreasing it from $300 to $200, the outlet reported. And more cuts are in the works, with some allowances falling to $100 a day, sources tell Bloomberg. Outside engineering, Apple is reportedly weighing a daily limit as low as $25 a day.

TechCrunch has reached out to Apple for comment.

Earlier this year, a tsunami of tokenmaxxing took hold, with companies pushing staff to use AI as much as possible in the name of vaguely defined efficiency gains. The frenzy was short-lived, however, as bills for said tokens came due, and companies decided that token rationing might be a more fiscally sensible approach.

Concerns persist about an apparent gap between what AI costs to build and run and the (often unclear) productivity gains the technology is suppose to generate.

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