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Apple Cuts Engineering AI Spending Cap by One-Third

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Apple Cuts Engineering AI Spending Cap by One-Third

Apple is lowering the artificial intelligence (AI) budgets for employees in its engineering teams and those in other teams, Bloomberg reported Wednesday (Nov. 4), citing unnamed sources.

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For some engineering teams, Apple cut the daily spending cap for AI models from $300 to $200 in October, and the company plans to further cut the cap to $100, according to the report.

For some teams outside engineering, Apple is considering reducing the daily cap from the current $100 to $25, per the report.

A spokesperson for Apple declined Bloomberg’s request for comment, per the report.

Employee reactions to the cuts have been mixed, with some saying that few workers were using their fully daily AI budget, and others expressing concerns that this signals broader cost-cutting that could result in layoffs, according to the report.

Other companies have also set limits on employees’ AI spending. Tesla has a $200 weekly limit, Uber has a $1,500 monthly limit and Meta has encouraged employees to use the company’s own tools, per the report.

It was reported in October that companies are finding it increasingly difficult to forecast their AI spending, with just 11% of almost 400 surveyed businesses saying they could accurately predict their AI costs.

The Ramp AI Index released Aug. 12 found that the heaviest spenders had AI budgets more than 600 times larger, per employee, than a typical business.



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