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Apple’s AI Move: Strategic Opportunity or Risk?

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Apple Inc. (NASDAQ:AAPL) is reportedly in talks with Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) Google to use its Gemini AI models to revamp Siri.

Apple Explores External AI Partnerships To Revamp Siri

Apple has approached Google to discuss building a custom Gemini model that could power a new version of Siri as early as next year, reported Bloomberg, citing people familiar with the matter.

As per the report, Google has already begun training a model that would run on Apple’s servers.

Shares of Apple rose 1.27% to $227.76 on Friday, while Alphabet’s Class A shares gained 3.17% and Class C increased by 3.04%,  according to data from Benzinga Pro.

See Also: Ramit Sethi Lays Out the Most Common Money Traps—And How To Dodge Them Before It’s Too Late

Apple Also Weighed Anthropic, OpenAI Partnerships

The talks are part of a broader push by Apple to catch up in generative AI after falling behind rivals.

Apple has also explored partnerships with Anthropic and ChatGPT-parent OpenAI, but has yet to decide whether to rely on external AI models or continue developing Siri’s capabilities internally.

Earlier this year, it was also reported that executives at Apple discussed the possibility of acquiring Perplexity AI in internal meetings.

Analysts Call Apple’s AI Approach A ‘Disaster’

Wedbush analyst Dan Ives earlier called the Tim Cook-led tech giant’s AI strategy a “disaster.”

In an interview, he stated that “Nothing is going to happen internally” when asked about how much Siri needs to improve. “It’s not happening internally and there’s no one on the Street that believes any innovation is coming out of Apple when it comes to AI organically.”

He also urged Apple to accelerate acquisitions and partnerships to avoid falling further behind rivals like Microsoft Corporation (NASDAQ:MSFT), Google and Meta Platforms, Inc. (NASDAQ:META).

Benzinga’s Edge Stock Rankings show that AAPL continues to exhibit strong upward trend across short, medium and long-term periods. More detailed performance metrics can be found here.

Read Next:

  • AMD CEO Lisa Su Says China Strategy Rebounding As MI308 AI Chips Await US License: ‘Better Position Than We Were Ninety Days Ago’

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