Apple weighs using Anthropic or OpenAI to power Siri in major reversal

Core Insights - Apple Inc. is considering utilizing AI technology from Anthropic PBC or OpenAI for a new version of Siri, moving away from its in-house models in a significant strategic shift [1][4][5] - Discussions with both companies are ongoing, focusing on training their large language models to operate on Apple's cloud infrastructure [2][22] - This potential transition indicates Apple's struggle to compete in the generative AI space, which is seen as a critical technology advancement [4][10] Company Strategy - The current AI features of Apple are primarily powered by its own technology, known as Apple Foundation Models, with plans for a new Siri version based on this technology set for 2026 [3][5] - The exploration of third-party models is still in early stages, and no final decision has been made yet [5][12] - The internal project named LLM Siri continues to be developed alongside the discussions with external AI providers [5][10] Leadership and Management Changes - The evaluation of external models is led by Siri chief Mike Rockwell and software engineering head Craig Federighi, following the reassignment of responsibilities from AI chief John Giannandrea [7][29] - Rockwell has directed his team to assess the effectiveness of Siri using both in-house and third-party technologies [9][10] - Giannandrea's influence within the company is diminishing as responsibilities are shifted to other executives [28][29] Talent and Morale - There are concerns regarding team morale as some engineers feel blamed for the company's AI shortcomings, leading to potential talent loss to competitors offering significantly higher salaries [18][19][20] - Apple has made counteroffers to retain key talent, indicating the competitive landscape for AI engineers [21] Financial Considerations - Apple is negotiating financial terms with Anthropic, which is seeking a multibillion-dollar annual fee that escalates over time, complicating the potential partnership [27] - The company has already allocated a multibillion-dollar budget for 2026 to support its own AI model development [12] Future Developments - If Apple proceeds with third-party models, it may enhance Siri's capabilities to match those of AI assistants on Android devices, potentially improving its market position [5][10] - Apple is also exploring acquisitions to bolster its AI capabilities, including discussions with Perplexity and Thinking Machines Lab [16]