Apple is reportedly pulling back on its own AI spending. TechCrunch reported the company is significantly cutting the budget allocated for AI usage by its engineering teams — the internal tools and compute its own developers rely on, not the consumer-facing features it ships.
It's a striking move at a moment when most of big tech is racing in the opposite direction, with rivals pouring tens of billions into AI infrastructure and internal tooling. Whether this reflects cost discipline, disappointing returns on internal AI tools, or a reshuffling of priorities isn't clear from the report.
The cuts also arrive against the backdrop of Apple's broader AI struggles: the company has faced persistent questions about the pace of its Apple Intelligence rollout and delayed Siri upgrades. Trimming what engineers spend on AI internally — whatever the rationale — will do little to quiet the narrative that Cupertino is playing this cycle more cautiously than its competitors.
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