Apple in Talks with OpenAI and Anthropic to Enhance Siri with AI

Apple is in early talks with OpenAI and Anthropic to power a next-generation version of Siri. This move could put aside Apple's own AI ambitions temporarily. The company is considering licensing customised large language models (LLMs) from the two AI firms to run on Apple's private cloud infrastructure instead of external platforms like AWS or Azure.

By keeping LLMs on Apple silicon-powered servers, Apple aims to maintain tighter control over data privacy, a key marketing pillar for the brand. The revamped Siri effort is led by Mike Rockwell and Craig Federighi, following CEO Tim Cook's reported loss of confidence in AI head John Giannandrea.

While Apple is still developing its own in-house model called 'LLM Siri,' the company has acknowledged that third-party tech, particularly Anthropic's, is currently ahead. VP of corporate development Adrian Perica has been leading discussions with Anthropic, but pricing discussions are far apart, with the startup demanding a multi-billion dollar annual deal.

OpenAI is also a potential option as Apple weighs the financial and strategic implications of outsourcing core AI functions. Behind-the-scenes tension is evident, with morale reportedly dropping within Apple's Foundation Models team. Some employees feel unfairly blamed for lagging progress in generative AI, leading to departures citing conservative compensation.

In a high-stakes moment, the entire team behind Apple's open-source MLX framework almost quit before the company intervened with counteroffers, as per Bloomberg.