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Apple Reportedly Lowers AI Spending Limits for Engineers Amid Cost Cutting Push

Apple Reportedly Lowers AI Spending Limits for Engineers Amid Cost-Cutting Push

Despite the tighter internal budgets, Apple's overall expenses have continued to rise.

Written by Shaurya Tomer, Edited by Ketan Pratap | Updated: 6 November 2026 09:06 IST

Apple Reportedly Lowers AI Spending Limits for Engineers Amid Cost-Cutting Push

Photo Credit: Bloomberg

Apple employees have access to several third-party AI services

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Highlights

Some engineering AI budgets may drop further to $100 per day
Teams are urged to use local models to rein in AI token costs
Apple R&D spending surged 32 percent in FY 2026 amid AI push

Apple is said to be tightening its spending limits on artificial intelligence (AI) tools used by employees. According to a report, the Cupertino-based tech giant has already reduced the daily allowance for some engineers using AI models from $300 to $200, with further cuts being considered for select teams, even as it looks to make AI a bigger part of its internal operations. The proposed changes will reportedly bring some engineering budgets down to $100 per day. Meanwhile, employees in other departments may also face lower limits.

Apple Reduces Employee AI Spending Limits

According to a Bloomberg report, Apple lowered the daily spending cap for some engineers using AI models to $200 from $300 last month. Citing sources familiar with the discussions, the publication reported that the tech giant is now considering further reductions for certain engineering teams, potentially bringing their daily allowances down to as little as $100.

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Apple employees, notably, have access to several third-party AI services, including Anthropic's Claude, OpenAI's ChatGPT and Google's Gemini. The report claims that some teams are being encouraged to switch to less expensive models or use AI models that run locally on devices to reduce spending.

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The report adds that several teams outside engineering already operate with a daily limit of $100. Apple is also said to have considered lowering this allowance to as little as $25 for some groups. Employees who need higher budgets to carry out their work will be able to request exemptions from senior leadership.

The budgets reportedly cover tokens, which are the units of text and other data processed by AI models when responding to prompts. AI service providers typically charge based on the number of tokens consumed, with more advanced models generally costing more.

Bloomberg reported that the changes reflect Apple's effort to encourage employees to incorporate AI into their everyday workflows while keeping a closer watch on associated expenses. Reactions within the company have reportedly been mixed. Some employees believe the earlier $300 daily allowance was more generous than necessary, as few workers were using their full budgets. Others see the reductions as part of a wider cost-cutting exercise. This reportedly adds to concerns about possible layoffs and restructuring.

Despite the tighter internal budgets, Apple's overall expenses have continued to rise. During the earnings call, the Cupertino-based tech giant said that its research and development spending increased 32 percent in FY 2026, driven by higher infrastructure and AI-related costs.

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Further reading: Apple, AI

Shaurya Tomer

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Shaurya Tomer is a Sub Editor at Gadgets 360 with 2 years of experience across a diverse spectrum of topics. With a particular focus on smartphones, gadgets and the ever-evolving landscape of artificial intelligence (AI), he often likes to explore the industry's intricacies and innovations – whether dissecting the latest smartphone release or exploring the ethical implications of AI advancements. In his free time, he often embarks on impromptu road trips to unwind, recharge, and ...More