Apple is reportedly contemplating a major shift in its artificial intelligence strategy by potentially integrating third-party AI models from Anthropic or OpenAI to power a new version of Siri. This move, reported widely by several sources citing Bloomberg, marks a significant departure from Apple’s long-standing reliance on its own in-house AI development.
For years, Apple has prided itself on maintaining tight control over its technology stack, especially for flagship features like Siri. However, the company’s internal large language models (LLMs) have consistently lagged behind competitors in functionality and capability. Apple’s ambitious “LLM Siri” project has seen delays, now pushed back to at least 2026 due to technical challenges that have hindered progress. These setbacks, combined with high-profile resignations of AI researchers to rivals such as Meta and OpenAI—who often offer more lucrative compensation—have intensified Apple’s urgency to revamp its AI approach.
The current discussions with Anthropic, whose Claude model is gaining attention, and OpenAI, the creator of ChatGPT, involve licensing their advanced AI technologies. Crucially, Apple is reportedly negotiating to run these models on its own cloud infrastructure rather than relying on external servers. This would allow Apple to maintain its privacy-first brand promise and control over user data, a linchpin of its ecosystem. Such an arrangement suggests a hybrid model: using third-party AI for cloud-based Siri capabilities while continuing to develop in-house AI for on-device functionality and developer tools.
This strategic openness contrasts with Apple’s previous partnerships, which primarily aimed to expand compatibility or ecosystem reach—like its 1997 deal with Microsoft to ensure Office support on Mac or the 2014 alliance with IBM to provide enterprise apps on iOS. Now, Apple is contemplating outsourcing the “brain” of Siri, acknowledging that its own AI models are not yet competitive with those of its peers. This would be an unprecedented admission from a company known for developing core technology internally.
The potential licensing costs are substantial. Anthropic reportedly seeks a multibillion-dollar annual fee, escalating over time, underscoring the value and urgency of access to cutting-edge generative AI models. Alongside licensing talks, Apple has also considered acquiring AI startups such as Perplexity to strengthen its capabilities, signalling a willingness to invest heavily to stay competitive.
For Australian tech companies and startups, Apple’s shift offers important lessons in the increasingly vital “buy versus build” debate in AI. Even a behemoth like Apple, with ample resources and top-tier talent, finds it difficult to develop world-class AI solely in-house. This suggests that smaller businesses might better allocate resources by integrating established AI solutions rather than solely pursuing foundational AI breakthroughs themselves.
Leading Aussie unicorn Canva exemplifies this blended approach, accelerating its AI capabilities through strategic acquisitions like Leonardo.ai to enhance generative visual tools and MagicBrief for AI-powered advertising. This “buy and integrate” model enables faster time-to-market and access to talent without the burden of extensive research and development from scratch.
Ultimately, Apple’s evolving AI strategy signals a broader industry trend: the best innovation often arises from a hybrid model that combines external excellence with internal expertise, rather than pure self-reliance. For Australian SMEs and startups, Apple’s example underscores the importance of pragmatism—focusing on integration, product development, and unique value propositions instead of trying to compete directly with AI research giants.
In summary, Apple’s consideration of third-party AI for Siri marks a pivotal shift with wide-reaching implications—from redefining one of the world’s most iconic digital assistants to reshaping approaches to AI development globally. This development highlights the challenges even leading tech companies face in AI and reflects a pragmatic embrace of hybrid strategies that Australian companies would do well to note.
Source: Noah Wire Services
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