Apple's Siri Revamp: In-House AI or External Partnership?

Apple is reportedly in talks with OpenAI and Anthropic to integrate their AI models into Siri, a move that could cost billions of dollars per year. This is a bid to catch up in the AI race, as Apple struggled to deliver on promises for Apple Intelligence, particularly contextual awareness and deep in-app functions for Siri. Anthropic's tech is reportedly the best fit with Siri so far.

Apple Inc. (NASDAQ:AAPL) is reportedly in talks with OpenAI and Anthropic to integrate their AI models into Siri, a move that could cost billions of dollars per year. This strategic shift is a bid by Apple to catch up in the AI race, as the company has struggled to deliver on promises for Apple Intelligence, particularly in areas such as contextual awareness and deep in-app functions for Siri. According to sources, Anthropic's technology is reportedly the best fit with Siri so far.

The overhauled Siri is expected to debut in 2026, and if finalized, the partnership would mark Apple’s first direct integration of external generative AI into a flagship product. This move signals Apple's acknowledgment that it is trailing in the LLM (Large Language Model) race, especially as rivals like Google and Microsoft rapidly embed AI across their ecosystems. While Apple has already baked basic on-device AI into iOS 18, this shift points to a broader strategy: allowing best-in-class third-party LLMs for more advanced tasks while keeping user data locked into Apple's ecosystem.

The potential cost of this partnership is significant. The deal could involve billions of dollars per year, as Apple aims to stay competitive in the rapidly evolving AI landscape. This move is particularly notable given Apple's history of prioritizing privacy and device optimization over ostentatious AI tools. However, with rivals like Google and Samsung releasing AI features, Apple needs to react quickly and forcefully.

The partnership with Anthropic and OpenAI could also provide Apple with a fallback option if its current $20 billion annual contract with Google is affected by ongoing antitrust cases. Perplexity AI, another burgeoning AI startup, is also being considered by Apple for a potential acquisition to boost its AI strength. This move could represent a significant change in Apple’s approach to AI since the introduction of Siri.

For investors, this shift highlights Apple's commitment to staying competitive in the AI space. While the potential costs are high, the strategic benefits could be substantial. Apple's decision to integrate external AI models into Siri could lead to more advanced and useful features, enhancing the overall user experience. This move also positions Apple to take the lead in AI, rather than simply catching up.

References:
[1] https://finance.yahoo.com/news/apple-considers-using-anthropic-openai-043519405.html
[2] https://www.techrepublic.com/article/news-national-academy-ai-instruction-teachers-union-microsoft-openai-anthropic/
[3] https://true-tech.net/apple-to-buy-perplexity-ai/