Hajra Naz
Apple is cutting the daily amount its engineering teams can spend on AI tools, according to a report from Bloomberg. It is a major shift for a company that has pushed hard to integrate artificial intelligence into its core engineering processes.
In October, Apple lowered the daily AI spending cap for its engineering teams. The company decreased the daily allowance from $300 to $200 per developer. Further spending cuts are already in the works. Sources told Bloomberg that daily allowances for some engineers could drop to $100. Outside of engineering, Apple is reportedly considering a daily limit as low as $25 per employee.
Read More: Apple is exploring new ways to boost revenue through third-party AI apps.
Earlier this year, a wave of heavy token usage swept through the tech industry. Companies urged their staff to use AI as much as possible to achieve vague efficiency gains. However, that early enthusiasm proved short-lived. Massive bills for API tokens began coming due across the board. As a result, tech companies decided that token rationing was a far more sensible approach for their budgets.
Significant concerns continue to persist in the tech sector. Analysts point to a clear gap between the massive costs of running AI models and the unclear productivity gains the technology actually delivers.
