Apple employee AI budgets cut to reduce costs
Employees relying on third-party AI use to perform work at Apple will need to cut back as funding has been reduced by as much as a third for some. Apple's AI funding for external bots has been reduced Internal artificial intelligence use has become too expensive for many companies, including Apple, as returns for the expenses continue to wane. Apple uses the features for coding assistance, bug…
Apple has trimmed its artificial intelligence (AI) budgets for employees, with some cuts reaching up to a third, in an effort to reduce expenses. Internal AI use, including coding assistance and bug hunting, proved to be too costly for the tech giant. According to Bloomberg, Apple has slashed available funds from $300 to $200 per engineer, with some cuts even down to $100 and a few as low as $25.
Employees can still request higher allowances on a per-use basis, but internal reports suggest that many engineers have not come close to the initial generous $300 limit. While some may view this cost-cutting as a sign of financial strain, it is more likely a strategic move to reallocate funds to other projects. Apple is also working on developing more functional AI systems based on its own Apple Foundation Models and taking advantage of the Mac lineup's capability to run some models locally, reducing the need for additional paid tokens.
As the AI boom fades into a more cautious AI trickle, budgeting around the new reality of the technology appears to be a logical step.
Written by urgent.news from AppleInsider's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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