Apple's Strategic AI Move: Why It Might Be in the Best Position

As generative AI reshapes the tech landscape, most attention has gone to OpenAI, Google, Anthropic, Microsoft, xAI, and China’s DeepSeek. Their models are powerful, their demos flashy, and their progress rapid. In contrast, Apple—famously secretive and methodical—has drawn skepticism over its perceived AI inertia.

Despite announcing “Apple Intelligence” at WWDC in June 2024 and following it with a splashy fall ad campaign, Apple has yet to meaningfully integrate generative AI into iOS. Headlines swirl about delays and internal team reshuffling, and among AI insiders, it’s trendy to “worry” about Apple’s AI future.

That worry is understandable, especially when compared to the dizzying pace of OpenAI and Google’s new capabilities. The contrast is frustrating for users who see clear use cases where generative AI could vastly improve the iPhone experience: AI-powered search, advanced voice assistants, agents, and multimodal interactions.

But we see it differently. Apple isn’t losing the race—they’re running a different one. And they might still win.

Apple has never been about speed. It moves deliberately, focused on reliability, privacy, and delighting the customer. With 2.2 billion active devices and full-stack control—from chip to OS to App Store—Apple has a unique advantage. Historically, it’s combined existing technologies (web, MP3s, GPS, 3G/5G, etc.) with intuitive interfaces to transform how we live.

It doesn’t need to compete on model performance. It just needs to integrate AI in a way that enhances the “Apple magic.”

So, what’s the holdup? Apple clearly understands the opportunity. Its Apple Intelligence campaign hints at awareness of the obvious integration points. Take Siri: Apple already owns the “voice gateway” to our always-on devices. These phones are full of rich contextual data (preferences, habits, histories) that would power next-level AI interactions. We all want to say “Hey Siri” and get real results—bookings, posts, purchases, reminders, edits—across apps we’re already logged into.

Imagine telling Siri to reorder your usual from Starbucks, restock the pantry via Instacart, trade on Robinhood, or post to LinkedIn, all without switching apps, or even having to touch your phone for that matter. That’s the vision. Generative AI feels like the missing piece to finally fulfill Siri’s promise. And because it’s Apple, we’d trust it to be secure and privacy-first.

But internal delays and hints of cultural conflict suggest Apple’s AI leadership lacked urgency or vision. A recent Apple research paper questioning LLMs’ ability to “reason” was widely criticized for missing the practical point; LLMs work incredibly well in real-world contexts, regardless of what’s happening inside the model.

This kind of skepticism points to a potential lack of spark and ambition in Apple’s AI leadership. But Apple has another cultural pillar that may soon take over: customer obsession. The truth is that generative AI, when integrated well, will make the iOS experience dramatically better. That gravitational pull is strong, and Apple seems to be responding.

There are signs Apple is course-correcting. It’s rumored to be pursuing partnerships, acquisitions, and hires to fill gaps in leadership and capability. One such rumor: a possible acquisition of Perplexity, the AI-native search engine.

Why would that matter? Perplexity is led by Aravind Srinivas, a respected AI voice. The company is pioneering AI search with nearly a billion monthly queries. It’s focused on being an “answer engine,” a perfect fit for Apple’s need to evolve both Siri and Safari, especially as it may need to decouple from Google Search in the future. Siri powered by Perplexity’s tech (plus Srinivas’s vision) could help Apple leapfrog into a world where voice and AI search are seamless, helpful, and deeply integrated into iOS.

And Apple has the resources to make this happen. With $130 billion in cash and one of the strongest brands in tech, it could easily hire or acquire the talent it needs. Consider Meta, which is throwing massive sums at top AI figures, including Scale AI’s Alexandr Wang, Safe Superintelligence’s Ilya Sutskever, and others. Apple has the same access and arguably a more attractive platform to offer.

So even if it looks like Apple is behind, it’s likely in the middle of a deliberate acceleration. It doesn’t need to build the next best model or dominate AI as a research field. It just needs to masterfully integrate this new layer into its existing experience. That’s what it does best.

Apple’s goal is to make AI work for its ecosystem—private, secure, and seamless. When it arrives, it will feel like it’s always been there. And Apple will continue to lead, not by chasing AI headlines, but by doing what it always has: putting the customer first. And we would bet on it doing just that in this space as it gets through its current course corrections.