Apple Inc. reduced daily artificial intelligence token spending limits for some engineers from $300 to $200 in October 2026, with further cuts to $100 planned alongside potential $25 caps for non-engineering teams. Led by Chief Executive Officer John Ternus, the cost-cutting initiative aims for leaner operations despite Apple's research and development expenses surging 32% in fiscal year 2026. Employees requiring higher tool allowances can request exemptions from senior management.
Apple reduces internal AI token budgets
- ▪Apple is planning further internal budget reductions that could decrease daily AI allowances for certain engineering teams to $100
- ▪Apple is considering lowering daily AI token spending limits for non-engineering teams from $100 to as low as $25
- ▪In October 2026, Apple reduced the daily artificial intelligence spending allowance for some engineering employees from $300 to $200
Apple AI tools access and exemption procedures
- ▪Apple established a procedure allowing employees who require higher daily AI token allowances for work to request senior leadership exemptions
- ▪Apple employees maintain access to third-party AI services including Anthropic's Claude, OpenAI's ChatGPT, and Google's Gemini, with some teams directed to use lower-cost or local models
Apple cost cuts trigger layoff concerns
- ▪Some Apple employees expressed concern that internal AI token budget cuts signal broader corporate cost reductions and potential workforce layoffs
- ▪Several Apple divisions hired outside consultants to evaluate operational efficiency, raising internal anxiety regarding potential corporate restructurings
Apple fiscal 2026 expense growth
- ▪Apple's research and development expenses increased 32% in fiscal year 2026, driven by rising infrastructure and artificial intelligence expenditures
- ▪Apple's total operating expenses rose 22% in fiscal year 2026 to $75.5 billion, representing 16% of the company's total net sales
Industry-wide AI spending limits
- ▪Goldman Sachs restricted employee access to specific AI coding tools following an internal evaluation of productivity benefits and risk management
- ▪Tesla introduced a $200 weekly limit on employee AI spending, while Uber Technologies capped individual AI coding tool usage at $1,500 monthly
- ▪Microsoft restricted internal AI spending allowances, while Meta Platforms introduced token budgets to encourage employee adoption of in-house AI tools
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