Apple cuts daily AI spending limits for engineering teams
What's the story
Apple has reportedly reduced the daily budget for its engineering teams' use of artificial intelligence (AI) technologies. According to Bloomberg, the company has slashed the spending cap from $300 to $200 last month. The move comes as Apple cuts the daily amount its engineering teams can spend on AI, amid concerns over the gap between AI development and operational expenses versus its perceived productivity benefits.
Budget reduction
Budget cuts may go as low as $25 a day
The budget cuts aren't over yet, with some allowances possibly being reduced to as low as $100 a day, sources told Bloomberg.
Beyond engineering, Apple is also considering a daily cap as low as $25 for other departments.
The drastic measures come despite Apple's efforts to integrate AI into its engineering processes.
AI trend
Tokenmaxxing trend and its impact on companies
Earlier this year, a trend called "tokenmaxxing" took over tech companies.
The term refers to the practice of pushing employees to use AI as much as possible for efficiency gains.
However, the trend was short-lived as companies were hit with costs related to these tokens.
This led many firms, including Apple, to consider rationing their AI usage budgets instead of unlimited spending.