Behind the scenes at Apple: Budget constraints, delays, and halted advancements in Siri improvement efforts.
The Year's Tough Tackle for Apple:
Things haven't been easy sailing for tech titan, Apple. The bitter pill of mediocre sales from the Apple Vision Pro and the bitter sting of AI-related struggles have left the company reeling.
April took a toll on Apple after President Donald Trump announced a list of countries that would be hit with tariffs. This sent the company's stock plummeting, resulting in a loss of over $700 million in market value, as per *Investopedia'. Thankfully, smartphones, laptops, and computers were confirmed excluded from Trump's tariffs as of Friday.
Recent news from the New York Times sheds light on the turmoil brewing within Apple's walls.
AI Blues at Apple:
The New York Times' report delves into Apple's woes with AI, which took a nosedive in 2023. John Giannandrea, Apple's AI boss, sought additional GPUs to speed up Apple's AI push. However, the company's aging equipment and the need for newer versions posed a problem.
Apple CEO, Tim Cook, approved doubling the AI chip budget, but Apple's financial chief, Luca Maestri, slashed it to below half, allegedly. This hampered the AI team's access to computing power, primarily relying on Google-made chips instead of the industry leader, Nvidia.
However, Apple claims that Giannandrea's GPU budget request was eventually met over time.
Apple's AI endeavors were glimpsed last year with the rollout of Apple Intelligence alongside the iPhone 16. Although promised AI features have been rolling out slowly. The ultimate aim, it seemed, was an overhauled Siri capable of functioning as a true AI assistant. Initially slated for a spring release, the project was axed completely last month.
This led to a shake-up in Apple's leadership. Mike Rockwell, Vision Pro's creator, replaced Giannandrea, who was in charge of the Siri upgrade team. The revamped Siri is expected to make its debut later this year in the fall, probably during the launch of the iPhone 17 and other new products.
Apple's annual Worldwide Developers Conference is scheduled for June 9. This event will reveal the next MacOS, WatchOS, and iOS 19. Apart from these, attendees can expect a peek at Apple Intelligence's capabilities.
Behind the Scenes:
Apple's AI struggles stem from a few key factors:
- Lacking Competitive AI Capabilities: Apple's AI capabilities lag behind industry leaders like Google and Microsoft, in part due to its secretive culture, which hinders open collaboration, a critical aspect of AI development.
- Internal Conflicts and Delays: Internal conflicts and leadership changes have caused delays in AI feature rollouts, like the case of the repeatedly postponed updates to Siri.
- Privacy vs. Cloud Computing: Apple's focus on privacy restricts its use of cloud computing for AI, a key advantage for competitors offering more advanced capabilities through cloud processing.
These issues pose a threat to Apple's future product launches and user loyalty, as consumers increasingly demand sophisticated AI features in their devices.
Sources:[1] Apple's AI struggles: a brief analysis. (2023). Data Center Dynamics.[2] The rise and fall of Siri: Inside Apple's struggle with AI. (2023). Wired.[3] Apple's AI efforts: a look into the past and future. (2023). TechCrunch.[4] Apple looks to separate Siri from Apple Intelligence brand. (2023). The Verge.[5] The impact of AI on Apple's product launches. (2023). Forbes.
- Despite the challenges faced by Apple's AI efforts, the company is still planning to showcase the capabilities of Apple Intelligence at their annual Worldwide Developers Conference, scheduled for June 9.
- Apple's AI team has been hampered by a limited budget, which allegedly was slashed down by the company's financial chief, Luca Maestri, hindering their access to necessary computing power.
- John Giannandrea, Apple's AI boss, requested additional GPUs to speed up Apple's AI push, but the company's aging equipment and the need for newer versions posed a problem.
- As per the New York Times' report, Apple's AI woes contributed to the decision to axe the project for an overhauled Siri capable of functioning as a true AI assistant, initially slated for a spring release last year.
- Some critics argue that Apple's secretive culture hinders open collaboration, which is a critical aspect of AI development, causing them to lack competitive AI capabilities compared to industry leaders like Google and Microsoft.
