Apple is reportedly cutting budgets for its internal AI usage
The company is said to be significantly dropping the amount it's spending on AI for its engineering teams.
Apple is reportedly reducing the budget allocated to its internal AI usage, according to a report by Bloomberg on Wednesday. This development comes as a significant shift for the company, which has been actively integrating AI into its engineering processes. In October, Apple had already lowered the daily AI spending cap for its engineering teams from $300 to $200.
The company is now considering further cuts, with some allowances potentially dropping to $100 a day, sources indicate. The potential for even lower limits, as low as $25 a day for non-engineering departments, is also under discussion.
TechCrunch has reached out to Apple for a response. The trend of intensifying AI usage, known as tokenmaxxing, gained momentum earlier this year among tech companies, driven by a belief that it could deliver vague efficiency benefits. However, this enthusiasm was short-lived, as the rising costs of AI tokens prompted a shift towards more cautious rationing of these resources.
There remains a notable concern regarding a perceived disparity between the expenses involved in building and running AI systems and the productivity gains that are often promised but not always clearly demonstrated.
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