Apple reduces internal AI spending limits for engineering teams

Apple has implemented new cost-saving measures by lowering the daily AI spending allowances for its engineering and non-engineering staff. The adjustments, which began last month, are part of a broader initiative to manage rising operational expenses associated with the integration of artificial intelligence tools.

For some engineering teams, the daily spending cap was reduced from $300 to $200. The company is currently evaluating further reductions that could bring these daily allowances down to $100. Meanwhile, many non-engineering groups, which currently operate under a $100 daily limit, may see their allowances decreased to as low as $25.

These budget caps apply to the cost of tokens, which are the units of data processed by AI models such as ChatGPT, Claude, and Gemini. Employees who require additional resources beyond these new limits are permitted to seek exemptions from senior leadership.

The budget adjustments are occurring under the leadership of CEO John Ternus, who assumed the role on Sept. 1, 2026. Ternus has reportedly focused on a strategy to streamline company operations by reducing management layers and operational costs. Apple declined to comment on the changes.

Some internal reports suggest that the previous $300 daily limit was rarely reached by most employees, indicating that the prior caps were viewed by some as overly generous. Despite the focus on efficiency, the implementation of these measures has coincided with the use of outside productivity consultants in certain divisions, contributing to internal discussions regarding potential organizational changes.