Overview
- In October 2026 Apple lowered daily AI spending for some engineers from $300 to $200, a change first reported by multiple outlets.
- Company discussions now include deeper cuts that could drop some engineers to $100 a day and some non‑engineering teams to as little as $25, with exemptions available on request.
- The caps are measured in AI 'tokens' and apply to external services such as Anthropic’s Claude, OpenAI’s ChatGPT and Google’s Gemini while some teams are being steered to cheaper models or local on‑device solutions.
- Employee reaction is mixed: some say few workers used the full prior allowance so savings may be limited, while others fear the cuts and outside consultant reviews indicate broader cost‑cutting or restructuring under CEO John Ternus.
- The move follows a wider industry trend of firms reining in AI expenses and comes as Apple’s R&D and AI infrastructure costs rose sharply in fiscal 2026, leaving actual savings from the caps uncertain.