Apple has lowered the daily amount some of its engineers can spend on AI, Bloomberg reported on Wednesday. Citing people with knowledge of the change, Bloomberg says the reductions are part of a cost-cutting effort, even as Apple tries to put AI at the centre of its operations. Bloomberg's Mark Gurman wrote on X that "Apple is cutting employee AI spending budgets even as it pushes workers to use the technology more."

Map showing where Apple Park is
Apple Park, Cupertino, United States

What Bloomberg says has changed

According to Bloomberg, Apple last month cut the daily AI spending allowance for some engineers to $200 from $300. Bloomberg also reports that more cuts are in the works, with some engineering allowances potentially falling to $100 a day. Its sources asked not to be identified because the discussions are private.

Apple's headquarters, Apple Park in Cupertino, California.
Apple's headquarters.

Outside engineering, Bloomberg reports, some groups already operate under a $100 daily cap, which Apple has considered reducing to as little as $25. Employees who need more access could seek exemptions from senior leadership, according to Bloomberg.

What the budgets cover

The budgets cover AI tokens, the units of data processed by models such as ChatGPT, Claude and Gemini. Bloomberg reports that some teams are being directed to use less expensive models or models that run locally on devices. Bloomberg also reports that internal reaction has been mixed: some employees say few workers were using their full $300 daily allowance, while others see the reductions as a sign of broader cost cutting that adds to concerns about potential layoffs.

The wider picture

Bloomberg says new chief executive John Ternus is pushing the company to run leaner. It also notes that Apple's overall spending has risen: Bloomberg reports Apple said this week that research and development expenses increased 32% in fiscal year 2026, and that operating expenses rose 22% to $75.5 billion. That sets a cut to an AI allowance beside a company whose total costs are climbing.

Bloomberg says the move reflects a broader trend of tech companies scrutinising AI expenses after encouraging adoption. Among its examples, Bloomberg reports that Uber capped usage of individual AI coding tools at $1,500 per month and that Meta introduced token budgets. Reuters adds that Bloomberg recently reported Goldman Sachs restricted access to some AI coding tools after a review of productivity and risk management.

TechCrunch frames the cut as a big change for a company that has worked to integrate AI into its engineering processes. It also says that earlier this year companies pushed staff to use AI as heavily as possible, a trend it calls tokenmaxxing, before the token bills came due and companies decided "token rationing might be a more fiscally sensible approach." TechCrunch adds that concerns persist about "an apparent gap between what AI costs to build and run" and its often unclear productivity gains.

Apple's response

A spokesperson for Apple declined to comment to Bloomberg. Apple did not immediately respond to a Reuters request for comment, Reuters said, and TechCrunch said it had reached out to Apple. The spending-cap figures here are Bloomberg's, drawn from anonymous sources, and have not been confirmed by Apple.

Sources

Gurman, M. (2026) 'Apple Cuts Internal AI Usage Budgets in Move to Reduce Spending', Yahoo Finance, 4 November 2026, available at: https://finance.yahoo.com/technology/ai/articles/apple-cuts-internal-ai-usage-194500447.html (Accessed: 5 November 2026).

Jayaprakash, P. (2026) 'Apple cuts employee AI budgets in cost-control push, Bloomberg News reports', Reuters, 4 November 2026, available at: https://www.reuters.com/business/retail-consumer/apple-cuts-employee-ai-budgets-cost-control-push-bloomberg-news-reports-2026-11-04/ (Accessed: 5 November 2026).

Ropek, L. (2026) 'Apple is reportedly cutting budgets for its internal AI usage', TechCrunch, 4 November 2026, available at: https://techcrunch.com/2026/11/04/apple-is-reportedly-cutting-budgets-for-its-internal-ai-usage/ (Accessed: 5 November 2026).

X (formerly Twitter) (2026) 'Mark Gurman on X: "NEW: Apple is cutting employee AI spending budgets even as it pushes workers to use the technology more. Engineers have seen daily limits cut from $300 to $200, with further reductions to $100 planned. Other teams could see limits fall to $25. https://t.co/4tnOIaxpDz" / X', X (formerly Twitter), 4 November 2026, available at: https://x.com/markgurman/status/2118068667103453360 (Accessed: 5 November 2026).

Picture credits