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How Apple will win the AI war

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Apple AI strategy: Don't beat 'em, join 'em
It doesn't matter who wins the the AI battle if Apple allies with all of them.
AI image: ChatGPT/Cult of Mac

Apple will let iPhone and Mac users choose between multiple AI models for different tasks, according to a report published Tuesday. The strategy would allow users to select whichever third-party AI system they prefer to generate and edit text and images for them.

It’s a brilliant solution to the ongoing battle between companies to develop the best AI models. It won’t matter whether OpenAI, Google, Perplexity, etc., wins that fight — because Apple also wins.

Apple AI strategy: Don’t try to beat ’em, join ’em

Companies doing the foundational research to develop the most advanced large language models keep pouring hundreds of billions of dollars a year into their respective endeavors, especially on building AI data centers.

Rather than compete with them and spend its own billions on development, Apple will reportedly cooperate with them. All of them.

“Apple Inc. will let users choose from a range of outside artificial intelligence services to power features across its software, building on a strategy to turn its devices into a comprehensive AI platform,” Bloomberg reported Tuesday.

The option to swap AI providers will give users more flexibility depending on their needs — for example, choosing one AI for writing tasks and another for image generation.

“Right now ChatGPT is an option in Image Playground, Writing Tools and Siri,” Bloomberg‘s Mark Gurman wrote Tuesday on X. “This will open up to other providers who add support via their App Store apps. Apple is testing Gemini and Claude.”

In addition, Apple apparently plans to let users choose from various third-party voices for Siri.

“Another new feature: assigning different voices in Siri to default, in-house Siri and when you’re using an external chatbot within the voice assistant like ChatGPT, Gemini or Claude,” reported Gurman.

The new AI options should debut with iOS 27, iPadOS 27 and macOS 27 this fall. Rumors indicate these new operating systems will focus on Apple Intelligence updates.

Apple AI strategy advantage

Apple faces heavy criticism for not keeping up with its rivals in developing artificial intelligence. While OpenAI, Google and others rapidly rolled out large language models and more conversational voice assistants, Apple struggled with leadership changes and shifting technical strategies.

But it seems Apple is turning what seemed like a problem into an advantage. And that will benefit iPhone, Mac and iPad users.

If Apple developed its own world-class large language models, it would build these into its operating systems. Users would then be expected to use them.

But because Apple continues to struggle with LLMs, it’s instead supposedly giving users access to a wide range of AI services to choose from. Starting with iOS 27, iPadOS 27 and macOS 27, someone might use Gemini to generate pictures in Image Playground, but go with ChatGPT for help composing an email. That flexibility is likely to be a tremendous advantage.

TANSTAAFL

There is an aspect of Apple’s AI strategy that can’t be overlooked — assuming Bloomberg‘s report is correct, of course. While Apple might have given free access to its AI models to all its users, the third-party services will expect to be paid.

Of course, they have free tiers for light users, but heavy users of AI on a Mac or iPhone will surely need to pay a subscription fee based on usage. Companies that spend hundreds of billions of dollars to develop a very useful technology can’t be expected to simply give it away.  

And, realistically, it’s no different from any other service accessible through these devices, whether it be Spotify, Netflix or something else.

There won’t be just one AI winner

And all those subscription fees coming from Apple users could prove critical to the success of those AI companies. Because there won’t be just one. 

Much of the furor surrounding AI investment seems predicated on the idea that one company will win, and all the others will lose. OpenAI, Perplexity, etc., are rushing as hard as they can to develop the most advanced models as quickly as they possibly can. They seem to spare no expense in the race to win.

But it increasingly looks likely that there won’t be just one winner. No company is developing an overwhelming lead. Instead, all these companies are creating AI tools that are approximately equally useful. It often depends on what task the user needs performed.

AI models are commoditizing faster than anyone predicted,” wrote Horace Dediu, an analyst with Asymco, last month. “Software and hardware both have tendencies to commodify.”

A winner in the AI race could have the power to shut out Apple. That company — whether it be OpenAI or Google — could lure customers away from iPhone and Mac with the strength of their tech.

But it seems no company is going to emerge with an AI monopoly, so they’ll all need millions of customers to pay for all that infrastructure they are building. They can’t afford to be picky. And they can get large numbers of those customers by adding support for Apple Intelligence to their apps.

Everyone is a winner!

Not surprisingly, some AI companies intend to take on Apple head-to-head. Google already makes smartphones, of course, and OpenAI is reportedly developing one.

But that’s easier said than done. Google has been trying for a decade but can’t get a single one of its smartphone into the global top 10. Apple produced four models on that list. And this is an area where OpenAI has no experience at all (although collaborating with former Apple design chief Jony Ive can’t hurt).

Apple’s AI strategy of letting iPhone and Mac users access a range of AI services seems like a win-win for everyone. AI developers can do what they do best — make LLMs — while Apple does what it does best — make smartphones that many millions of people prefer. And the benefit to us users is obvious.

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