Apple cuts employee AI budgets as new CEO looks to rein in costs Proactive Thu, November 5, 2026 at 12:10 PM EST 1 min read AAPL -1.77% META -3.96% UBER -1.96% APC +7.35% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
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.
