Tokenmaxxing is on the way out, even as some of the biggest players in the tech industry are urging their employees to use AI as much as possible. A new Bloomberg report reveals that Apple is cutting employee budgets for AI token usage while remaining just as committed to deploying AI to boost efficiency. 

Apple has already reduced the daily spending limit from $300 to $200 for certain engineers, according to Bloomberg, but the company reportedly plans to cut that down even more. Sources told Bloomberg that the daily cap could drop as low as $100 for some engineering teams. In many other departments, daily AI spending is already capped at $100; now Apple is considering reducing the limit to $25 for certain teams. 

The spending limit is measured in tokens, which are units of AI usage that represent fragments of text or data processed by AI systems. 

This move comes as Apple continues pressing its engineers and other employees to use AI more in day to day operations. But it also reflects a larger trend rippling across the tech industry, as companies struggle to justify their outsized spending on AI. 

After pushing their employees to adopt AI, many tech employers seem to be grappling with the fact that those investments have not yielded the productivity gains that they anticipated. 

According to Bloomberg , some Apple employees believed many people weren’t making use of the $300 limit and that it was higher than needed. But other employees seemed to view it as a sign that Apple is looking to reduce costs—and that the company could resort to layoffs.

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