What happened
Apple reduced some engineers' daily AI-tool spending cap from $300 to $200 last month, and is planning further cuts that could reach $100 for some teams, per Bloomberg's Mark Gurman.
Why it matters
Employees needing more can seek exemptions from senior executives, and some teams are being encouraged to use cheaper models or ones that run locally on their devices, suggesting a push to curb usage.
WHO IT HITSEngineers and other staff at Apple who rely on daily access to services like Anthropic's Claude, OpenAI's ChatGPT and Google's Gemini for their work will need to adjust usage or request executive exemptions.
Summaries like this, every morning.
The spending caps arrive as Apple's research and development costs have climbed 32% on AI and infrastructure, meaning the tightening is taking place within a budget line that is still expanding rapidly. According to Mark Gurman, CEO John Ternus, who took over on 1 September, has pushed Apple to run faster and leaner and has cut layers of management. One detail complicates the picture: few workers were using their full $300 daily allowance to begin with, according to 9to5Mac's writeup of the report. Even so, some employees reportedly view the reductions as a sign of broader cost cutting, adding to concerns about potential layoffs.
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