AI is being used everywhere these days. Whether it’s for personal use or for work, we’re seeing the technology pretty much in all places now. But it seems that over at Apple, instead of pushing forward with more AI usage, a recent report suggests that Apple is making cuts to its AI budget for employees.
Apple cuts employees’ AI budget
This is according to a report from Bloomberg, which claims that Apple is making cuts to how much employees spend on AI. Now, by that we don’t mean that Apple is reducing its investment into AI. But rather, Apple wants to reduce the amount of money its employees are spending on AI when it comes to things like coding.
As it stands, the report claims that for some engineers, they were given daily budgets of $300 per day, while others were given up to $100 a day. But now, the report says that Apple wants to reduce that down to $200, with some teams even getting capped at $25. To that end, Apple is asking some of those teams to use less expensive models or switch to on-device AI.
Should an employee require a bigger budget, they’ll have to ask executives for an increase.
Massive token usage
For normal folks using AI, you might be using a free plan on Claude, Gemini, or ChatGPT. Or some of you might be paying the $20 a month monthly fee for upgraded access. Typically speaking, that’s usually enough for most people. But when it comes to coding using AI, that’s where it eats up a lot of tokens. That’s why for some developers, they opt for the higher $100 or $200 a month plans.Â
However, the enterprise space is a bit different. Because on developer platforms, they might access these AI models through an API, and those are usually billed pay-per-token. This means that they pay for what they use. So in the case of Apple’s engineers, they have a higher budget because they might need more tokens for coding. Whereas other employees might require less.
We have to wonder if cutting back the budget could result in a loss in productivity. But looking at the bigger picture, there are some who are worried these cuts could indicate a possible restructuring under Apple’s new CEO, John Ternus.
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