Report: Apple reduces employees’ AI token allowances as Ternus moves to cut costs
AI-summarised brief · reviewed before publication
Apple has lowered its employees’ daily AI token spending limits as part of CEO John Ternus’ cost‑cutting drive. Engineers’ allowances were cut from $300 to $200, with plans to reduce some teams’ caps to $100 or even $25. The move follows rising AI tool costs and a broader industry trend of curbing token usage. Employees can request exemptions, and Apple encourages cheaper or local models. The policy reflects the company’s effort to manage its $45.8 billion R&D spend, which rose 32% last year.
💡 Why It Matters
- · By tightening AI budgets, Apple signals a shift toward more disciplined resource use amid escalating R&D costs, potentially reshaping how developers leverage AI in product development.