Apple is cutting the daily amount its engineering teams can spend on AI, Bloomberg reported Wednesday. It's a big change for a company that has worked to integrate the technology into its engineering processes.

What Are the New AI Spending Caps?

In October, Apple lowered the daily AI spending cap for its engineering teams, decreasing it from $300 to $200, the outlet reported. Sources say further reductions are planned, with some allowances potentially falling to $100 a day. Outside engineering, Apple is reportedly weighing a daily limit as low as $25 a day.

Why Is Apple Changing Its AI Budget Policy?

Earlier this year, a tsunami of tokenmaxxing took hold, with companies pushing staff to use AI as much as possible in the name of vaguely defined efficiency gains. The frenzy was short-lived, however, as bills for said tokens came due, and companies decided that token rationing might be a more fiscally sensible approach. Apple's move reflects that broader industry reassessment.

Background: The Rise and Pull-Back of Token-Heavy AI Use

Since large language models became widely available, many tech firms encouraged employees to experiment with AI tools for coding, documentation, and brainstorming. The practice, often called "tokenmaxxing," measured usage in the number of tokens processed by the model, a metric directly tied to cost. Companies that did not monitor these expenses saw monthly AI bills climb into the millions.

Apple, known for its careful budgeting and internal control, initially set a relatively generous daily cap of $300 for its engineers in early 2023. The intention was to accelerate product development cycles and embed AI-assisted workflows across hardware and software teams.

How Apple's Internal AI Budget System Works

Apple's internal AI platform operates on a pay-per-use model. Each request to an AI service consumes a certain number of tokens, which are then converted into a monetary cost based on the provider's pricing. The company tracks usage in real time and enforces daily caps at the employee level. When a cap is reached, the system blocks further AI calls until the next day, forcing engineers to prioritize the most valuable tasks.

Impact on Apple Employees and Projects

The reduction from $300 to $200 per day already forces engineers to be more selective about which code reviews, bug-fixes, or design explorations receive AI assistance. If the caps drop to $100, teams may need to reserve AI for high-impact milestones such as prototype validation or security analysis.

Non-engineering staff, marketing, legal, and operations, could face a $25 daily ceiling, limiting their ability to generate draft copy, summarize documents, or run quick data queries with AI. The disparity underscores Apple's focus on preserving AI spend for core product development while curbing peripheral usage.

Industry Context: Cost vs. Productivity Debate

Concerns persist about an apparent gap between what AI costs to build and run and the (often unclear) productivity gains the technology is supposed to generate. Analysts note that while AI can automate repetitive tasks, the measurable return on investment varies widely across functions.

Apple's budget tightening mirrors actions taken by other large firms that have recently audited AI spend. Some have introduced internal charge-back models, while others have paused large-scale AI pilots until clearer metrics emerge.

What Comes Next for Apple's AI Strategy?

Apple has not publicly detailed the timeline for the next round of caps, but Bloomberg's sources indicate that decisions will be finalized in the coming weeks. The company is expected to monitor usage data closely and may adjust limits on a quarterly basis.

Employees are advised to submit justification requests for any AI usage that exceeds daily caps, a process that will likely involve project managers reviewing the projected benefit against the cost.

Practical Takeaways for Readers

  • Engineers at Apple now have a $200 daily AI budget; further cuts to $100 are possible.
  • Non-engineers may see a $25 daily limit, reflecting a tighter control on ancillary AI use.
  • Apple's move is part of a wider industry shift toward token rationing after a period of unchecked AI consumption.
  • Employees must prioritize high-value tasks for AI assistance and may need to seek approvals for extra spend.

TechCrunch has reached out to Apple for comment.