Apple outsources its new iPhone AI infrastructure to rival Google

Apple has unveiled a major artificial intelligence overhaul for the iPhone, striking a notable partnership with long-time tech rival Google.

The announcement came on Monday during the company’s annual Worldwide Developers Conference, signalling a strategic shift for the tech giant as it leans on external AI infrastructure rather than building it entirely in-house.

The event also marked what is expected to be Chief Executive Officer Tim Cook’s final appearance at Apple’s flagship summer showcase, ahead of a planned leadership transition to senior hardware executive John Ternus in September.

Cook appeared emotional during the presentation, pausing to wipe away tears as he reflected on what he described as his 15-year tenure at the helm of the company.

Apple had previously outlined ambitious plans for artificial intelligence two years ago, but the initial rollout struggled and prompted consumer lawsuits.

In a significant change of direction, the company is now relying on Google’s Gemini model to power its new AI systems, effectively outsourcing key parts of its infrastructure to its chief competitor.

Software chief Craig Federighi stressed a more cautious strategy, contrasting Apple’s approach with rivals that, in his words, pursue AI for its own sake.

The upgraded voice assistant, now branded “Siri AI,” will integrate more deeply across Apple’s ecosystem, including apps such as Maps, and will be able to draw on user data for more personalised responses.

However, regulatory challenges are expected to delay the rollout of some features in key markets, including Europe and China.

Despite earlier setbacks in generative AI, Apple’s stock has remained strong, rising about 15% so far this year.

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