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Apple is facing increasing challenges in artificial intelligence as competitors continue to advance and launch stronger products. Despite launching its own Apple Intelligence platform last year, the company has struggled to overcome perceptions that it is lagging behind in the generative AI race. Within Apple’s leadership, there are differing approaches on how to address this issue, which could shape the company’s future.
Apple’s Leadership Is Divided on Whether to Acquire AI Startups or Rely on In-House Engineering Talent
A new report from The Information suggests that Apple’s top executives are divided on how to proceed. Apple’s Services head, Eddy Cue, reportedly favors pursuing major acquisitions in the AI space. He believes that acquiring companies like Perplexity or Mistral could provide an immediate boost in search and generative model capabilities, allowing Apple to address gaps in its AI system. Perplexity is a rising rival to Google Search, backed by prominent players such as Nvidia and Jeff Bezos. For Cue, these acquisitions are crucial for Apple to remain competitive in an industry where rivals are moving aggressively.
However, not all executives share this view. Craig Federighi, who oversees Apple’s software engineering, is reportedly confident that Apple’s internal teams can build the necessary technology. He prefers small acquisitions that blend seamlessly into Apple’s ecosystem rather than spending billions on major deals. Federighi’s approach aligns with past decisions where Apple builds in-house technology that integrates well with its hardware and software.
The strategic crossroads between Cue and Federighi highlights the challenges Apple is facing. If the company continues at its current pace, it risks falling further behind competitors in the industry. On the other hand, pursuing major acquisitions could pose financial and cultural risks for a company that has always prioritized control and privacy. It remains to be seen how Apple will proceed, but a combination of both approaches might benefit the company.
