Apple (AAPL) is reportedly considering a partnership with Google’s Gemini AI to revamp Siri, marking a strategic shift from solely in-house AI development. This move highlights Apple’s urgency to enhance its AI capabilities and compete more effectively in the growing market. Despite the potential for innovation, the $490 million investor settlement remains a burden, impacting overall sentiment.
Key points include Apple testing Gemini AI against its internal models for Siri, with a scheduled overhaul now delayed until 2026 due to engineering challenges. This trend of outsourcing AI development is similar to strategies employed by Microsoft with OpenAI and Amazon with Anthropic, amid rising demand for AI semiconductors and cloud infrastructure.
Apple’s stock trades at $227.76, with a market cap of $3.38 trillion. The ongoing legal settlement emphasizes lingering investor trust issues as Apple shifts its strategy. Investors are keen to see whether this pivot accelerates innovation or brings new risks.
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