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Apple puts AI on a diet: Cupertino caps engineering tokens in aggressive cost-cutting push

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Apple puts AI on a diet: Cupertino caps engineering tokens in aggressive cost-cutting push

Apple is clamping down on internal spending for artificial intelligence tools, cutting daily allowances for its engineers despite positioning the technology at the absolute centre of its global operations.

According to a Bloomberg report, the Cupertino-headquartered technology company recently lowered the daily spending cap for select engineering teams using external AI models from $300 to $200. The austerity measures are expected to intensify, with internal discussions pointing toward further reductions that could see daily caps drop to as low as $100 for specific technical departments.

The move highlights an industry-wide paradox: tech conglomerates are aggressively marketing AI to consumers while simultaneously micro-managing the massive token infrastructure costs incurred by their own employees.

The budget restrictions strike at the heart of Apple's broader operational strategy. Under the leadership of Chief Executive Officer John Ternus, the iPhone maker is pushing to modernise its internal workflows, debugging practices, and software development pipelines using generative tools. However, this mandate now clashes directly with stricter corporate guardrails.

For non-engineering divisions, where a $100 daily limit was already standard, allowances could plummet to a mere $25. While senior leadership will reportedly permit high-volume users to apply for exemptions, the restrictions have triggered mixed reactions internally. Some staff view the move as a pragmatic adjustment, noting that few routinely exhausted the previous $300 limit. Others fear it signals aggressive corporate restructuring, especially as outside consultants are brought in to evaluate team efficiencies.

The financial reality driving these decisions is stark. 5 billion—equivalent to 16% of total net sales.


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