Apple cuts employee AI budgets as new CEO looks to rein in costs
Yahoo Finance ·
Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Apple Inc (NASDAQ:AAPL, XETRA:APC) is reducing internal budgets for employees using external artificial intelligence services, as new CEO John Ternus looks to control spending and streamline operations. The company has cut daily token-based spending limits for some teams to as little as $25, Bloomberg reported, citing people familiar with the matter. The changes are intended to encourage employees to use cheaper AI models, although some teams may be eligible for exemptions. The move comes as Ternus faces pressure to manage rising costs across the business, including higher memory prices that threaten to weigh on margins ahead of the holiday shopping season. Apple is not alone in tightening controls over AI spending. Meta Platforms and Uber have also introduced limits on employee use of AI tools as companies look to manage the growing costs associated with adoption. While businesses have been investing heavily in AI capabilities, the expense of accessing external models and services is prompting closer scrutiny of how employees use the technology. At Apple, the spending restrictions have reportedly raised concerns among some employees about possible restructuring, particularly following the company's recent hiring of outside consultants. The budget changes form part of a broader effort by Ternus to simplify operations and improve cost discipline as he takes over leadership of the iPhone maker. Neither Apple nor Ternus has publicly commented on the reported spending limits.
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