Apple is reportedly cutting budgets for its internal AI usage

Apple is reportedly cutting its AI budget for engineering teams, reducing daily spending caps from $300 to $100 or even $25 outside of engineering, in response to concerns about the cost-effectiveness of AI adoption. The move follows a brief period of widespread tokenmaxxing earlier this year, in which companies encouraged staff to use AI extensively in pursuit of efficiency gains, but ultimately faced high bills and decided to implement token rationing instead. Apple's shift in approach may indicate a growing recognition of the challenges of integrating AI into engineering processes and the need for more cautious spending.