What is Apple doing in the Race of AI?
After the launch of ChatGPT in 2022, all the tech companies understood that Generative AI is the next big thing and that is why all the tech companies leave all their work and focus on it first. Google launches BARD and GEMINI. Microsoft launches Copilot by collaborating with Open AI. Adobe launches Firefly. Elon Musk starts his new company XAI. Meta launches Llama model. Many more AI startups are created like Midjourney, Perplexity and Runway. Investors spend blind money on AI. But even after a year, no news comes from Apple about when they are launching their AI model.
How Apple is different in other Tech Companies? Why Apple stopped its Car Project on which 10 Billion spent?
Now if there was any other tech company working on the consumer side and if it had not given an update on AI till now, then its stock price would have crashed. But here it is Apple and everyone knows that Apple enters slowly in every field but whenever it enters, Apple completely revolutionizes it. We have seen the same thing before with Personal Computers, iPhones, iPods and Apple Watch. Meanwhile, a lot of news also comes that Apple has shut down its car project on which it has spent 10 billion to focus on AI. Whereas Amazon has acquired 10 AI companies, Microsoft has acquired 17, Google has acquired 18 and Apple has acquired 21.
For a long period of time, it seemed like Apple was quietly working secretly on Artificial Intelligence without making any distinction. While other big tech companies were regularly launching AI innovations. Apple was silent. Another year passed without a major update in AI until Apple’s Vice President tweeted on March 26 brought a wave of excitement. The tweet was: “Mark your calendar for WWDC24 – June 10 to 14. It’s going to be absolutely incredible.“
This message sparked because the phrase “Absolutely Incredible” was thought to be a clever play on the acronym “AI.” The media and tech related people immediately assumed that Apple will soon reveal its AI intentions towards the Worldwide Developers Conference (WWDC) 2024.
Which are the tools that Apple Announced in AI?
Then, on June 10, the WWDC event confirmed the rumors. Apple officially introduced its AI system called Apple Intelligence marking what many considered the company’s biggest announcement since the launch of the iPhone in 2007.
Apple launched a range of AI-powered features including writing tools in Notes Writing Tools, Summarize, Image Playground, All New Siri, Visual Intelligence, and Genmoji etc. Apple also initiated a collaboration with Open AI to integrate Apple with ChatGPT .
Why Apple Users were disappointed after the launch of basic features of Apple AI?
However the hype was made by Apple and practically these features were not included. Apple announced them but didn’t launch them. Even the basic features were launched very late. When the updates finally arrived, users became very disappointed. Basic tasks like object removal in photos that Samsung and Pixel devices handled effortlessly, were not performing well on iPhones. Additionally the upgraded Siri, originally promised for 2025, was postponed until 2027.
These AI features were initially available only on newer models like the iPhone 15 Pro and Macs with M1 chips or later, which limited access for many users. By the time Apple rolled out these features, other companies had already launched more advanced and refined AI tools, making Apple’s offering appear more reserved in comparison. Some critics viewed the release as lacking in completeness, and online commentary reflected mixed reactions.
Despite the significant anticipation, Apple’s AI felt more like an early-stage rollout with a premium positioning. The promotional material received varied feedback, with messages like “Trust us” seen by some as unclear. In practice, certain users reported performance issues, such as Siri occasionally struggling with simple commands differing from the polished experience typically associated with Apple products.
Apple Intelligence was just the beginning. Apple is quietly working on multiple AI projects. With a market cap larger than some developed countries, access to elite talent and over two billion active devices in its ecosystem. Apple holds a strategic advantage. Yet interestingly, instead of launching its own AI foundation model. Apple chose to integrate ChatGPT and rumors suggest it’s also in talks with Google.
You can also read; Google New Quantum Chip Willow and The Parallel Universe
Why would Apple use AI tools built by its biggest rivals Microsoft (which holds a major stake in OpenAI) and Google (creator of Android, iPhone’s top competitor)?
The answer lies in Apple’s long term strategy. The company realizes that new AI models are being developed at an incredible pace. One day OpenAI is criticized, the next it’s back on top after launching a new model. Google follows a similar pattern. Apple not just wants to compete these AI models in race, but rather it aims to completely dominate them slowly, steadily and strategically. Apple is preparing to reshape the AI landscape overall.
How Apple’s 4 Step AI Strategy Is Different?
Apple’s 4 Step AI Strategy is different from Google and Microsoft because of its business model. Google and Microsoft earn heavily from cloud services. So their AI efforts focus on offering cloud-based AI models (like Gemini and OpenAI through Azure) to attract enterprise customers. Apple however earns 80% of its revenue from hardware and 20% from subscriptions, with no cloud rental services. This shifts Apple’s focus toward enhancing hardware through AI rather than selling cloud services.
Why Cloud Services Matter for Apple? How much amount Apple is planning to invest in AI? Why Apple doesn’t offer Cloud Services?
Cloud platforms like Microsoft Azure and Google Cloud provide businesses a rent services as well as AI models. This is useful for companies like Flipkart which need flexible infrastructure for customer support and apps. Whoever provides better AI models at a better price gains more customers. This has triggered a massive AI race where Microsoft plans to spend $80B and Google $75B on AI. Surprisingly, Apple plans to invest Billions of USD in AI over four years, despite not offering cloud services.
Where Apple is going to spend Billions despite not launching AI model?
It’s answer is far going Apple’s Strategy. Apple’s superpower is it’s strong ecosystem. Apple is unbeatable in creation of Iphone, Macbook, Watches and Airpods etc. Apple is successful in every field. This strong ecosystem is the reason that’s why Apple can sell it’s device on very high price. Because of this ecosystem Apple is going to enhance it’s power 100x. If Apple would successful in increasing its power 100 times, it will completely dominate Android and Microsoft.
Apple is going to execute this process in four steps.
What is exactly the Apple AI 4 step strategy?
Strategy 1: Invisible Models
Apple doesn’t confuse users with different model options. It just calls everything Apple Intelligence and integrates AI directly into native apps like Notes, Mail, and Calls. The system automatically picks the best model based on context unlike ChatGPT or other services where users choose.
Strategy 2: Third Party Apps
In the next phase, Apple’s Siri will work as an AI agent communicating with third-party apps to complete complex tasks like booking cabs and sending messages across apps. Apple can achieve this due to its total control over both hardware and software, unlike Google and Microsoft who rely on third-party device makers and chip suppliers.
Strategy 3: Distribution Flywheel
Apple’s strength lies in its 2 billion device ecosystem powered by its own Silicon chips. It can instantly roll out AI features across devices. For instance, AI features like Magnetic Mask in Final Cut Pro or Adaptive Audio in AirPods show how Apple brings advanced AI to everyday users without them needing to understand the tech behind it.
Strategy 4: Building Trust
Knowing that users are wary of AI and privacy, Apple emphasizes features like “Private Cloud Compute” and asks permission before sending data to ChatGPT. This builds user trust and reinforces Apple’s image as a privacy-first company.
