Apple is cutting how much some engineers can spend on AI tools.
The iPhone maker lowered daily AI spending caps in October, reducing allowances from $300 to $200 and then planning further cuts to as little as $100 for some engineering teams. For some non-engineering teams, Apple was considering limits as low as $25. The move comes as Apple integrates AI into engineering processes and ramps up research and development spending, which surged 32 percent in fiscal 2026. Apple had offered tools including Claude, OpenAI's ChatGPT and Google Gemini, but now wants some teams to use cheaper models or run AI locally. Internal reactions were mixed, with some employees saying prior limits were generous and others seeing cuts as a sign of broader cost trimming. By November 12, 2026, the reductions remained part of Apple's effort to rein in AI costs.