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Tesla caps employee AI tool spending at $200 per week, exempts xAI products

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Tesla has introduced a $200 weekly spending limit on AI tools for its employees, effective July 6, according to an internal memo. The policy reverses the company's earlier push to encourage heavier AI usage among its workforce. The cap comes after some engineers reportedly spent thousands of dollars per week on AI tokens. Notably, products from Elon Musk's xAI venture, including Grok and Composer, are exempt from the restriction. The move is seen as steering employees toward xAI tools, even though many Tesla engineers reportedly prefer Anthropic's Claude.

Read the full story at Times of India

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