Apple cuts internal AI budgets, reduces daily token allowance for some engineers from $300 to $200

According to Bloomberg, Apple last month cut the daily AI token budget for some engineers from $300 to $200, with deeper cuts planned potentially to $100 per day and as low as $25 for some non-technical teams. Employees can request exceptions, and some teams will shift to cheaper models or on-device local AI. The move aligns with new CEO John Ternus's push to make Apple leaner, even as Apple's fiscal 2026 R&D spending rose 32 percent due to infrastructure and AI costs. Microsoft, Tesla, Uber, and Meta have also recently capped internal AI spending.