Apple slashes internal AI budgets, with deeper cuts still planned
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Apple has significantly reduced internal AI spending, cutting the daily token budget for some engineers from $300 to $200. Further reductions are planned, potentially lowering limits to $100 per day or as low as $25 for non-technical staff. Employees requiring additional resources must seek management approval for exceptions. The company is shifting some teams toward cheaper models and local device-based AI solutions. These cuts align with new CEO John Ternus's strategy to streamline operations, despite a 32 percent increase in overall R&D spending during fiscal year 2026. Internal reactions remain mixed, with some viewing previous limits as generous while others fear impending layoffs. This move mirrors similar cost-capping efforts by other major tech firms like Microsoft, Tesla, Uber, and Meta.
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