Red Hat, the IBM-owned Linux and open-source software firm, has told its developers to limit spending on AI coding tools to $300 per person each month, according to an insider tip received by The Register. Developers have also been barred from pooling or sharing unused token allowances with colleagues. The move marks a notable shift from the company's enthusiastic public stance on AI-assisted coding earlier in the year, suggesting the costs of widespread AI tool use may have outpaced expectations.

The $300 cap sits at the low end of what other organisations reportedly spend: Gartner research cited by DevOps.com found that roughly a quarter of technology leaders already pay between $200 and $500 per developer monthly for AI coding tokens, with about 6% spending more than $2,000. Some developers on Reddit have reported personal spending of $1,000 to several thousand dollars a month, and analysts at Enso Dynamics predicted late last year that $1,000 per developer monthly would soon become standard. Red Hat and Gartner did not respond to The Register's requests for comment, and no figures were provided on the company's previous AI spending levels.