Apple is reportedly cutting budgets for its internal AI usage

Apple is cutting the daily amount its engineering teams can spend on AI, Bloomberg reported Wednesday. It’s a big change for a company that has worked to integrate the technology into its engineering processes.

In October, Apple lowered the daily AI spending cap for its engineering teams, decreasing it from $300 to $200, the outlet reported. And more cuts are in the works, with some allowances falling to $100 a day, sources tell Bloomberg. Outside engineering, Apple is reportedly weighing a daily limit as low as $25 a day.

TechCrunch has reached out to Apple for comment.

Earlier this year, a tsunami of tokenmaxxing took hold, with companies pushing staff to use AI as much as possible in the name of vaguely defined efficiency gains. The frenzy was short-lived, however, as bills for said tokens came due, and companies decided that token rationing might be a more fiscally sensible approach.

Concerns persist about an apparent gap between what AI costs to build and run and the (often unclear) productivity gains the technology is suppose to generate.

Topics

AI , TC

November 4

Boston

Buy One Pass, Get a Second Free

Cover more ground at TechCrunch’s ultimate founder bootcamp of the year by bringing your co-founder or partner for free

Book before the BOGO deal expires

Register Now

Newsletters

See More

Subscribe for the industry’s biggest tech news

Related

Government & Policy

After the midterms, a bigger clash over data centers could be coming

Dominic-Madori Davis

24 minutes ago

Government & Policy

AI PACs spent millions trying to shape Congress — here’s how they fared

Rebecca Bellan

3 hours ago

Transportation

Almost no one uses AI agents to book their Uber, company says

Sarah Perez

4 hours ago

Latest in AI

In Brief

Lucas Ropek

10 seconds ago

Government & Policy

AI PACs spent millions trying to shape Congress — here’s how they fared

Rebecca Bellan

3 hours ago

In Brief

Nothing CEO says company’s mysterious AI-first device is dropping next month

Lucas Ropek

3 hours ago