Apple Cuts Internal AI Budgets, Plans Further Quota Reductions

Apple reduced daily token budgets for some engineers from $300 to $200 last month, with plans to cut them further to $100 per day and potentially as low as $25 for certain non-technical teams. Some teams will be shifted to cheaper models or on-device AI, while employees needing higher allowances must seek managerial approval. Against the backdrop of a 32% increase in R&D spending in FY2026 driven by surging infrastructure and AI costs, Apple's move aligns with recent efforts by tech peers like Microsoft and Meta to rein in internal AI spending.