AI is great to use. Too bad it's a bad business

Apple Reportedly Cuts Daily AI Spending Caps for Its Engineers

Apple is reportedly reducing how much its engineering teams can spend on AI each day, as companies rethink costly AI usage.

Apple Reportedly Cuts Daily AI Spending Caps for Its Engineers
Source: TechCrunch

Apple is cutting the daily amount its engineering teams can spend on AI, according to a Bloomberg report. The change is notable for a company that has worked to bring the technology into its engineering processes. In October, Apple reportedly lowered the daily AI spending cap for engineering teams from $300 to $200. Further reductions are reportedly planned, with some allowances dropping to $100 a day, according to sources cited by Bloomberg. Outside engineering, Apple is reportedly considering a daily limit as low as $25.

The move comes after a wave of enthusiasm earlier this year, when some companies pushed employees to use AI as much as possible in the name of loosely defined efficiency gains. That push faded as the bills for AI usage arrived, and many businesses began to view rationing tokens as a more financially prudent approach.

The episode reflects wider unease about the gap between what AI costs to build and run and the productivity benefits it is expected to deliver, which are often hard to pin down. TechCrunch has contacted Apple for comment.

Source: TechCrunch


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