"Apple ( NASDAQ:AAPL | AAPL Price Prediction) has trailed in the artificial intelligence (AI) race since its early stages. From the start, the company lagged behind rivals in developing large language models and AI infrastructure. Its current initiatives, such as Apple Intelligence and updates to Siri, have progressed slowly, with key features delayed until 2026. This pace raises concerns that Apple will lose more ground as competitors accelerate."
"Apple's AI strategy emphasizes partnerships over building its own AI infrastructure from scratch. Instead of committing billions to proprietary data centers and custom chips for training massive models, the company integrates third-party technologies into its devices. For instance, Apple initially partnered with OpenAI in 2024 to enhance Siri, then shifted to Alphabet's Gemini model for better performance and alignment with its privacy standards."
Apple has lagged in AI development, falling behind rivals in large language models and infrastructure. Apple Intelligence and Siri updates have advanced slowly, with key features delayed until 2026. Major competitors plan roughly $700 billion in capital expenditures in 2026, mostly for AI data centers and hardware, while Apple plans about $14 billion. Apple emphasizes partnerships and integrates third-party AI rather than building proprietary training infrastructure. Apple treats foundational AI as a commodity to avoid lock-in and costly, rapidly depreciating server investments. Apple focuses resources on user experience and cross-device integration and holds over $130 billion in cash reserves.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]