EP 603: Breaking: Apple reportedly teams up with Google to stay AI relevant

Apple’s AI Stumble: Partnering with Google to Bridge the Generative Gap

Apple, once the undisputed leader in technological innovation, is facing a critical inflection point. A recent Bloomberg report has unveiled that Apple is formalizing a partnership with Google to integrate Gemini, Google’s advanced large language model, into Apple’s ecosystem. This move is not simply another headline in the competitive world of AI—it's a fundamental shift with broad business implications, as detailed in a recent episode of the Everyday AI podcast.

Below are the specific insights and implications for business leaders, decision-makers, and technology strategists.

A Historic Alliance: Why Apple Is Turning to Its Rival

Over 2 billion Apple devices currently exist worldwide. The choice to bring Google’s Gemini AI into the heart of these devices signals both the magnitude of Apple’s challenge and the reach of this partnership. Recent financial reactions—Google’s stock jumping 9% in a day while Apple’s only 3% after the news—indicate who stands to gain the most. Apple appears to be raising its floor, slowing its decline, while Google is positioned to raise its ceiling.

This collaboration is, in effect, Apple seeking to patch critical holes in its AI offerings by bringing in technology from its chief rival. In the world of technology, such a move would have been inconceivable just a few years ago, underscoring how deep Apple’s setbacks have been in artificial intelligence.

Tracing Apple’s AI Setbacks: From Siri to Talent Exodus

Siri was once a pioneer, introducing many to personal AI assistants. Today, compared to Google’s Gemini Live or ChatGPT’s voice mode, Siri lags far behind. Apple's foundational models, meant to power its next generation of AI features, have failed to meet even basic benchmarks, forcing the company to reassess and rebuild from the ground up.

Compounding the technical issues is a significant loss of key AI talent. Since July 2025, five waves of principal engineers and researchers have left Apple’s AI team, with notable figures accepting offers from Meta and others. The reasons are multifaceted: internal models underperformed; compensation lagged behind market leaders; and strategic missteps were evident, such as the rebranding exercise “Apple Intelligence” which distracted from substantive progress.

Financially, Apple’s struggle is evident. Year to date, Apple’s stock declined 2%, while Google and Microsoft rose above 20%. Major AI project delays and mounting lawsuits, including allegations of false advertising and executive misrepresentation of AI capabilities, have shaken investor confidence.

The Mechanics of the Google Partnership: Privacy and Integration

According to the Bloomberg report discussed in the podcast, the Apple-Google deal involves a custom version of Google Gemini, specifically trained to run within Apple’s private cloud infrastructure. This is key to maintaining Apple’s traditional focus on user privacy—a concern for many stakeholders—by keeping all Google AI processing on proprietary Apple servers.

The integration will be part of a new web search tool for Siri called “World Knowledge Answers,” which mirrors the answers-engine model popularized by Perplexity and adopted by both ChatGPT and Gemini. If a Siri query involves personal data, Apple’s own (less capable) foundational models will handle it. For all other queries, World Knowledge Answers will utilize Google Gemini’s capabilities—delivering AI-generated summaries from web search results in a unified interface that supports text, photos, videos, and local points of interest.

The aim is to prevent Apple’s devices from becoming “dumb pipes” in the emerging AI ecosystem. The strategy starts with Siri and is planned to expand to Safari and Spotlight search, further embedding Google’s AI within the Apple experience.

Negotiation Dynamics and the Failed Alternatives

Apple explored partnerships beyond Google, eyeing other leading AI companies. OpenAI and Anthropic were both considered, but Anthropic reportedly demanded a $1.5 billion annual fee. There was even consideration of acquiring Perplexity, but ultimately Apple opted to contract with Google for faster and more reliable deployment.

This decision reflects a pressing need for Apple to deliver usable, reliable AI—even if it means ceding technological leadership and deepening dependence on a rival who can execute at scale.

Business Implications: The Shifting Hierarchy of Big Tech

This development highlights several near-term trends:

  • Short-Term Stability, Long-Term Uncertainty for Apple: While the Google partnership will likely boost Apple’s AI credibility in the short term and prevent immediate investor panic, it cements dependence on external innovation rather than in-house capability.

  • Google’s Expanding Influence: By embedding Gemini within billions of Apple devices while maintaining control of its own ecosystem, Google stands to solidify its position not just in search, but as the fundamental AI utility provider for the smartphone era.

  • Talent and Execution as Differentiators: The loss of Apple’s top AI engineers to direct competitors was decisive, demonstrating that in AI leadership, compensation and culture matter as much as brand legacy.

  • Potential Regulatory Scrutiny: Consolidating so much AI capability between two already dominant tech players could attract antitrust attention, especially given the scope of data and the scale of distribution.

Rollout Timeline and Next Steps

According to the latest reporting, the new Apple Smart AI features—powered by World Knowledge Answers and the custom Gemini integration—are slated for public launch in March 2026. Further expansion into Safari and Spotlight will follow.

For the ecosystem of technology partners, enterprise customers, and investors, this partnership is a clear sign of evolving market dynamics: strategic alliances now hinge less on traditional rivalries and more on timely access to production-ready, scalable AI capabilities.

Conclusion

Apple’s unprecedented step—partnering with Google to plug its AI gap—signals not a simple learning curve, but an operational and cultural crossroads for Apple. The value and future positioning of industry giants is being recalibrated not merely by products, but by the ability to execute AI at scale, retain top talent, and make bold choices when internal plans go awry.

For those managing portfolios, innovation initiatives, or technology procurement, this episode marks a new basis for assessing power, opportunity, and risk across the AI landscape.


Topics Covered in This Episode:

  1. Apple and Google Partnership for AI
  2. Apple's Ongoing AI Strategy Failures
  3. Bloomberg Report: Gemini AI Integration
  4. Siri AI Overhaul With Google Gemini
  5. Technical Details: Gemini on Apple Servers
  6. World Knowledge Answers Feature Launch
  7. Apple's AI Talent Exodus to Competitors
  8. Legal Risks and AI Feature Lawsuits
  9. Impact on Big Tech Competitive Landscape
  10. Potential Timeline for Smarter Siri Release


Keywords:

Apple, Google, Apple and Google partnership, Apple Intelligence, generative AI, Google Gemini, AI relevance, Siri, Siri failures, large language models, chief rival collaboration, Big Tech AI, market cap, AI-powered web search, AI search engine, Bloomberg report, AI features, AI partnership, AI summarizer, Apple AI delays, technological rivalry, OpenAI, Anthropic, Perplexity, AI foundation models, custom AI model, Private Cloud Compute, privacy architecture, AI talent exodus, machine learning, Apple lawsuits, false advertising, AI market competition, AI integration, hardware vs. software, ChatGPT alternative, Spotlight search, Safari AI integration, AI-driven device functionality, Meta, DeepMind, Microsoft AI, AI-powered summaries, web summarization, device intelligence, AI-powered assistants, smart assistant shortcomings



Podcast Transcript


Jordan Wilson [00:00:16]:
The company that was once the most valuable, powerful, and prominent in the world can't get the most important thing right. That's giving AI to its users. And it's gotten so bad now that we are seeing new and official reporting that apple, the company that just can't get apple intelligence, right. Is actually enlisting the help of their chief competitor, Google to get it done. So on today's show, gonna kind of bring a hot take Tuesday on a Thursday, maybe, we're going to talk about the new breaking news story that Apple is reportedly and officially going to team up with Google to stay AI relevant. I'm excited to dive into this one. I hope you are too. If you're new here, welcome.

Jordan Wilson [00:01:14]:
What's going on y'all? My name is Jordan Wilson, and this is Everyday AI. This is your daily livestream podcast and free daily newsletter helping everyday business leaders like you and me not just keep up with happen with what's happening in the world of AI, but how we can make sense of it and use all this information to make the right decisions to grow our companies in our careers. If that's what you're trying to do, it starts here with the unedited, unscripted, realist thing in artificial intelligence, this live stream podcast. But if you wanna take it to the next level, make sure to go to your everydayaon.com. There, you gotta go sign up for the free daily newsletter. We're gonna be recapping the highlights from today's show as well as keeping you up to date with everything else that's happening in the world of AI. No BS, just what you need. So make sure you go check out our daily newsletter.

Jordan Wilson [00:01:59]:
All right. Apple catastrophic failure. I mean, there's definitely going to be books and movies written about how apples fall from prominence probably started with its absolute fumbling of the AI back. They had the resources, they had the people, they had the plan they couldn't execute and they failed at a scale. I think we probably haven't seen in decades. So on today's show, we're gonna detail the new breaking Bloomberg report that unveils how Apple needed help from its chief rival, Google, to not fail at AI or maybe just fail a little less. We're going to uncover Apple's recent AI failures that led them to this point. And we're going to project how this could change the competitive AI landscape in big tech.

Jordan Wilson [00:02:58]:
All right. Live stream audience. What's going on, Miguel? Joining us from Chile. Yeah. If you are listening, on the podcast, you can always join us live, 07:30AM Central Standard Time on the LinkedIn, the YouTube, all those different things. Marie holding it down for New Jersey. Robert joining in from Raleigh. Two people from Chile.

Jordan Wilson [00:03:18]:
Jose joining us as well. Thanks to Brian and everyone else. If you have any questions like Michelle does here, make sure to get them in. Maybe I'll, crack them at the end, but pretty big story. And I'll just give you my take. It's not Tuesday, but we had the holiday this week. So I might just have enough, coffee and me to deliver a little bit of a hot take Tuesday on a Thursday, But here's what I think. This is pretty big.

Jordan Wilson [00:03:46]:
Right? It might just seem like one of those, you know, dorky AI and tech news subheadings, but this is monumental for a couple of reasons. It's, we're talking about more than 2,000,000,000 Apple devices out there in the wild in the world. So, this is going to affect potentially more than a billion people. In bringing the next generation of artificial intelligence to those 2,200,000,000 devices. But let's talk about trillions. That's the tech trillionaire companies. Two of them teaming up. You can make the argument that there hasn't been two more important companies over the last decade than Google and Apple.

Jordan Wilson [00:04:35]:
I I mean, you gotta throw Microsoft in there as well, but, I mean, Google and Apple, they fight on the hardware side, on the software side. They are two of the biggest rivals in the world. Right? I'm thinking of rivalries that I enjoy or kind of take a part of as a fan. Right? I'm a huge, North Carolina basketball fan. Right? Their chief rival is Duke. This is like North Carolina being like, let's hire Duke's team to teach us how to play basketball, even though we have to compete against them. Do you see how asinine this is and how actually monumental it is for one of and what was once the most powerful and prominent company in the world by market cap, no longer having to enlist the help and pay their biggest rival to deliver a now what's gen in generative AI and large language models, a fundamental feature. So Apple is years behind, and I think that they're gonna continue to lose their global footing.

Jordan Wilson [00:05:40]:
I've talked about this on previous shows. Apple, previously, when you're looking at companies in, in terms of market cap, they were the biggest and most powerful in the world and it wasn't even close. Right? Second and third place weren't even on the pedestal with them. Apple was light years ahead. Now Apple is barely hanging on to the third biggest company. And I've said this before on previous shows. I think whether it's two years or four, I think eventually Apple is gonna fall out of the top five companies in terms of market cap. I know when I initially said this, I don't know, maybe a half year ago when apple was still number one in the world, people are like, no, Jordan, you're crazy.

Jordan Wilson [00:06:18]:
And clearly they've already dropped to number three, so it's going to continue to happen. But I think this partnership, even though it does help apple a little bit, I think it raises their floor, but it raises Google's ceiling. My gosh, I was kind of shocked yesterday to see that, Google's stock shot up 9%. Apple's went up 3%. So I do think that this helps Apple's floor a little bit, but this pushes Google's ceiling and there's a big difference. Right. Especially when you think of having to shake the hand of one of your competitors, knowing that you're probably only gonna get incremental gains or stop the bleeding, but it's going to help explode one of your biggest competitors. So let's talk about what started this.

Jordan Wilson [00:07:03]:
This was a Bloomberg report that just came out, and you gotta note the headline, and we're gonna dissect this one a little later. It says apple plans, AI powered web search tool for Siri to rival OpenAI and perplexity. Okay. So again, this is not official official, but, Bloomberg by far, for at least a decade has been the go to source on being correct and authoritative in terms of Apple News. So this one I'll chalk up to yet. It's pretty much a done deal, but right now, it's just reports, but let's detail, what is happening. So, the Bloomberg report said that Apple and Google signed a formal agreement to test Gemini AI in Apple's environment. This is obviously a huge significant step in a historic partnership that marks Apple's continued AI failures.

Jordan Wilson [00:07:58]:
And also there were other players, in the, in the fold, including OpenAI and Anthropic and reportedly Anthropic was just saying they wanted too much money, apparently, dollars 1,500,000,000.0 a year that would increase annually to essentially be Apple's preferred AI partner. So Apple's first new version of Siri was really bad. And it reportedly forced a ground up rebuild of the technology, right? Technically Siri was one of the first pieces of artificial intelligence that billions of people in the world used. Right. It's been around for more than a decade. It is, more traditional machine learning, artificial intelligence, but let's be honest. It's dumb. Right? And I don't feel bad saying that even though I've, you know, had private conversations with people who worked on the original Siri team, I don't hesitate to say Siri is done.

Jordan Wilson [00:09:03]:
Alexa is done. Right? If you talk to these quote unquote smart assistants that were smart ten years ago, it's extremely painful because if you use Chad GPT's advanced voice mode, if you use Google's Gemini live, those are extremely helpful, right? And neural and sound like talking to a real person and they're smart Siri, Alexa, not, but Apple has also lost so much AI talent and we're going to unravel a little bit more why it's gotten to this point, but, they've essentially lost some of their biggest names in AI. Some of their top engineers leading their AI teams to Metta. And the new kind of buzzword here out of this report is Apple's world knowledge answers. And that is what they're hoping or positioning to challenge ChatGPT directly. So this Google Gemini partnership with Apple, kind of the, the service offering, or the feature that is going to arise from this. It's not just replacing Siri, but it's working on a, new feature or a new facet of Siri called World Knowledge Answer. And this partnership obviously could eventually be rolled out to billions, of devices.

Jordan Wilson [00:10:15]:
And this prevents Apple from becoming a dumb pipe in the AI revolution era. So let's talk a little bit more specifically on what this will look like. Again, this is according to the Bloomberg reports. So this world knowledge answers. What the heck is that? What does it mean? How will it be used? How is Google's Google's Gemini integrated into all of this? Okay. So apple is essentially developing an AI powered web search tool that they're calling world knowledge answers. Hopefully that's not what it's actually called when it is debuted, but Bloomberg says that this is going to function as more of an answers engine, right? So, kind of the, category technically popularized by perplexity. But now we've seen this rollout to ChatGPT, Google Gemini, etcetera, right? This is these large language models that essentially quickly, and usually accurately query multiple internet sources to provide an up to date answer.

Jordan Wilson [00:11:17]:
Okay. So that is essentially what we're talking about here with Apple's new partnership with Google Gemini in their world knowledge answers in this new system is designed to provide AI generated summaries from web search results instantly. So if you've used, either Google's AI overviews or Google's AI mode, it's kind of like that, by the way, if you're using that use Google's AI mode, Google's AI overviews, sorry. You know, I know Google is a partner of this podcast. Google's AI overviews, not super reliable. Their Google AI mode insanely useful, insanely useful, so fast, so accurate. It's probably, if I look at my quarterly use of tools and their, you know, plus or minus percentage, Google AI mode is probably the, AI tool I'm using more and more than anything else, at least compared to quarter over quarter. And I think that apple realizes that right.

Jordan Wilson [00:12:12]:
Apple says, Hey, we see the, You know, obviously with Google being the default search engine in apple, which Google reportedly pays more than $20,000,000,000 a year. So it looks like apple may be now given some of those billions of dollars back. I think they realized, Hey, this concept of using a capable large language model, to quickly deliver queries from the web and give them to users is going to be extremely helpful. And that's essentially what we're, we may be getting with this new kind of partnership feature in world knowledge answers. So how's this going to work? Right. I mean, you're not going to talk to Siri and it's going to be like, yo, hold up. Let me go use Google Gemini and, you know, go to Google dot com and go to AI mode for you. So there's some technical, aspects going on under the hood.

Jordan Wilson [00:13:03]:
So Bloomberg confirmed that Google's Gemini AI will specifically handle web summarization features for Apple, and it is a special version of Google Gemini that Google is reportedly making just for this, partnership. So their new, Apple's new Siri, which they promise is really getting smarter this time. Essentially it's broken down into3 core systems. There's an intelligent planner, a search system, and a web summarizer. Okay. So that is technically how it works. And Google, like I said, has already started training a custom AI model designed to run on Apple's server. And that's the big, the big, clincher here because Apple to their credit, right? I know I drag Apple through the mud, you know, and grok, it's kind of easy to, but one thing you have to tip your cap to is Apple takes privacy a little more seriously than other AI companies, with their, kind of private cloud architecture.

Jordan Wilson [00:14:08]:
And that is how this will eventually come together. So essentially, Google is creating a, Apple specific version of their Gemini model that will reportedly run on, Apple's private cloud compute. So, right now, and this is according to Bloomberg, all Google AI processing will run on that private cloud compute. So it's not like Siri's just gonna kick it to Google dot com in the background. So this is to ensure, you know, Apple's kind of data protection that they normally offer, on the rest of their device. Also, Apple does have their own foundational models, which are not very good. Let's be honest, to handle the private user data. Okay.

Jordan Wilson [00:14:50]:
So essentially, because of this, the way that this new system works and it has these three different pieces, so if anything is asking about your personal data, reportedly the new world, what is it? World knowledge answers. See, I I'm already forgetting it. World knowledge answers. That's just such a weird name anyways. So if you're asking something of this new smarter system and it's about your own personal data, reportedly it will use Apple's foundational models. But if you're asking for something outside of your own personal data, then that's where it will tap into this, custom and private, instance of Google Gemini to deliver that essentially answers engine for your query. So it will be interesting to see how, this happens if you're asking for both, right? What if I'm asking for something along the lines of, you know, Hey, my wife texted me, about this product. You know, I want to see the latest product reviews.

Jordan Wilson [00:15:54]:
And if this is a growing, you know, industry or something like that. I don't know how it's gonna handle it. You know, if it's gonna use both of these models, because if so, it's probably gonna be a little slow in the, likelihood for errors higher, but luckily that's why, the engineers get paid the MBA, dollars and not myself. So a little bit more about this private cloud compute. That's Apple's PCC security architecture that was unveiled back in June, around the time of their WWDC when they initially when Apple initially announced Apple intelligence. Right? Because they essentially said we're creating this whole new type of private cloud because, you know, that was one of the reasons that Apple dragged their feet on, you know, implementing generative AI and large language models into the iPhone and their other I devices is because they said they needed a more secure or a new type of cloud. Alright? And this is what, they're according to reports, they are saying will prevent Google from accessing personal user information directly, because I know that this is going to be a hot point of contention. For me, I don't care.

Jordan Wilson [00:17:04]:
I'll give all my data to Google, to, OpenAI, to Apple. Don't care for me, but I know I'm in the minority. There are a lot of people, are, privacy, and data watchdogs. So that's kind of how that will work because I'm sure there's gonna be a lot of interest in how that works. Right? Google being the company that has monetized, over the past couple of decades from data. Right? Data that you obviously, adhere to giving them when you use their services versus Apple, the company that has traditionally kept all data tightly under wraps. So it's an interesting juxtaposition in how that's ultimately going to play out. So let's talk a little bit more about this world knowledge answers, what it's going to mean initially, and then how it may expand.

Jordan Wilson [00:17:53]:
So Bloomberg says that first, this world knowledge answers is going to start with Siri, right? So any query that you would ask Siri would tap into if it's outside of your, personal or private data, in which case it would be handled by Apple's foundational models. If not, then it would tap into this World Knowledge Answers, which is the Google Gemini partnership. But later, Apple is reportedly going to want to expand this into Safari, which that would be great. And then also their spotlight search functionality. So, this will support, text photos, videos, and local points of interest in a unified interface. That part is interesting. Right? Obviously, being able to talk to Siri and, you know, say, hey, based on, you know, based on my preferences, what are the best restaurants around me? If you're in a new place, something like that. If we could finally get any AI system to do that accurately, I think that's when we usher in this new era, for those that are fine with the privacy implications of generative AI actually being useful in your daily life.

Jordan Wilson [00:19:06]:
Marie says sounds very complicated. Yeah. I will say this. A lot of times when we use AI, right, especially in a chatbot, it seems so simple. It's actually, especially this type of partnership, it is, kind of convoluted for sure. All right. So why did this happen? Right. How did we get from Apple, one of the first technically players in artificial intelligence, Apple, you know, pre ChatGPT had one of the deepest rosters in the world when it came to machine learning.

Jordan Wilson [00:19:46]:
So how did we get here? How did almost seemingly every single Apple competitor figure out generative AI and large language models, but Apple didn't? And it got so bad, so bad that Apple not only had to partner up and pay their chief competitor, but they're facing multiple lawsuits on just how much they overpromise their AI and underdelivered. Well, the reason we got here is Apple's in trouble. Yeah. I'm not the only one to think that Apple is on a a irreversible slide downward in terms of valuation. Yes. Apple, you know, recently CEO Tim Cook essentially said, hey. We're gonna go all in on AI. Right? Which is funny.

Jordan Wilson [00:20:41]:
They should have been saying this back in, you know, 2018, 2019, not in the year 2025, you know, saying, oh, we're gonna spend all this money and do all these acquisitions. It's if I'm being honest, in that aspect, either investing from scratch or acquiring companies is too little too late. The only way that Apple can even begin to right the ship is exactly what they're doing here, because I've been saying this on the show until I've been red in the face. There's only two players right now in the Frontier AI model game. That's OpenAI and Google. Sorry, Anthropic. Sorry, Meta. Sorry, Microsoft.

Jordan Wilson [00:21:23]:
Right? Microsoft obviously uses OpenAI's models to power their co pilot, but their own models, not there yet, but I'm interested to see if they can catch up. But there's there's no one near OpenAI and Google. That's why for their previous quote unquote smarter Siri that fell through the cracks and they had to disable a lot of the functionality because of these lawsuits. Right? We saw that they were getting, you know, the, summaries, right? When, Siri would summarize your text messages or emails or news stories, they were getting it, I'd say hilariously wrong, but a lot of times it was bad and ugly and they were facing lawsuits because of that. So OpenAI, sorry, Apple had to partner with OpenAI previously. And in this one, they could have partnered with OpenAI or even Quad, but they went with, Google or sorry, Anthropic, but they went with Google. So how did this happen? Well, it started Apple at their WWDC, the worldwide developer conference last year, unveiled Apple intelligence, which at that point, I knew it was destined to fail. Right? Anytime you try to hijack AI, how very apple of apple, right? The arrogance to come in and say, yeah, we're just going to rebrand artificial intelligence, apple intelligence.

Jordan Wilson [00:22:50]:
I roasted them at the time and will continue to roast them for all eternity, as long as I'm sitting here doing this show. So they unveiled at their WWDC, about fifteen months ago, their Apple intelligence and how they were going to bring this newer, smarter, AI to Siri. Then the lawsuits came because nearly a year later. Right. And they obviously tied it to sales. Right? They're like, okay. Well, you gotta have the newest iPhone to take advantage of it. So go buy that iPhone, and then it didn't work.

Jordan Wilson [00:23:22]:
It didn't come out. Right? So they're facing multiple lawsuits. So one, was Land Sheft versus Apple that alleged, Siri hallucinated AI features. That was funny. Sorry. They said like apple hallucinated, when they were talking about what Siri could actually do. Yeah. You saw all these even commercials that came out showing Siri doing these things that it definitely couldn't do.

Jordan Wilson [00:23:46]:
Yeah. I remember, sitting with my wife once and, like, an Apple commercial came on and this was recently, showing something in Siri and she's like, Siri can do that. And I'm like, no. It definitely can't. I'm like, that's gonna be a lawsuit. Yeah. Lawsuit. Another lawsuit, a Cardi verse Apple cited delayed AI features and false advertising claims.

Jordan Wilson [00:24:05]:
That one was in May 2025 where the Landshaft, lawsuit was in March 2025. Alright. Then right around that time, Apple announced some major, Siri and AI delays essentially kicking the can and they're like, whoops, we know we promised all this stuff, but it might not come out until 2026 or later. Then there was a another lawsuit, about two months ago in June 2025. Tucker versus Apple, were to accuse Apple executives of misleading investors about their actual AI progress because, yeah, everyone investing in Apple, they're hearing all these things. They're seeing all these promises. It's gonna come out. It's gonna come out and nothing comes out and their AI stinks.

Jordan Wilson [00:24:48]:
Apple intelligence is now a, the butt of a joke. And executives at this point had reportedly already sold nearly a $100,000,000 in stock during this tumultuous period. Right? So reportedly, the insiders over there working at Apple are like, oh, yeah. We're screwed. We better sell off, some of our stock before it starts to hit the tank. Right. Also, I mean, luckily Apple's hardware, I think has saved its stock, from dropping too much. But it is year to date down, right down 2%, which you might not be like, oh, well, what's the what's the big deal? You know, down 2%, you know, year to date.

Jordan Wilson [00:25:35]:
Well, okay. Well, when you look at Google, Google is up 21%, year to date. Okay. Microsoft, is up 20% year to date. So essentially their biggest competitors are all up 15 to 30% And here apple has dropped 2%. So people aren't happy, right? Investors aren't happy. Their, their biggest, shareholders, people sitting in the boardroom, they're not happy. No, one's happy with apple in their AI fallout.

Jordan Wilson [00:26:06]:
And if I'm being honest, I am surprised that Tim Cook is still leading Apple after all this. Because like I said, Apple had the talent. And I'm gonna go over a little bit on this talent exodus. So it's obviously hit them very hard in the last couple of months, losing some of their most important AI team members to Meta and OpenAI and Google, but they had the talent going all the way back to 2018. They had some of the best and brightest AI researchers, but now it seems like apple is not wanting to, play the game because the game right now, if you want the most capable AI engineers and researchers that are gonna help your company grow and compete, you gotta pay NBA salaries and apple, their arrogance. All right. Apple. Hey, this is apple intelligence.

Jordan Wilson [00:26:59]:
They're not playing that game. They're not giving, you know, these researchers and engineers what the market is demanding because they're apple. Right? Well, let's see how that turns out for you. You know what that gotcha, Apple? Now you gotta beg your competitors for help because of your arrogance in saying you're too big to play the game. So let's talk a little bit more about this. So like I said, Siri's actual architecture reportedly was failing. So according to reports, they quote unquote just couldn't get it to work properly. All right.

Jordan Wilson [00:27:37]:
According to internal sources sources. So their engineering teams, which are being depleted by the week, required a complete rebuild using advanced large language model technology from the ground up. That's how bad their revamped AI Siri rollout was that just didn't work. And their enhanced Siri launch timeline that was supposed to come out in 2024. Now it's like, okay, we're hearing March 2026, but only because of this Google partnership. So I'm sure that Google was aware how deep, that apple was into it. And I'm sure we'll find out, more of these details in terms of the financials later, but I'm guessing Google cashed in hard on Apple's arrogance and the fact that they were, let's be honest, screwed. Right? Transparently, I'm doing this live stream on my Mac computer.

Jordan Wilson [00:28:40]:
My computer, my phone, my camera that I'm using is my iPhone. Right. I've never so actively right after being an iPhone user and a Mac user for, I guess I've been using a Mac for twenty years. I've been using an iPhone for, I don't know, ten. I've never so desperately wanted to get off, to get off the, the, the apple, to get off the Mac. It's just hard. Right? It's hard because the stuff just works, but the stuff is just dumb now. Right? The iPhone's dumb.

Jordan Wilson [00:29:15]:
My Mac is dumb, right? As someone that uses AI daily and I'm seeing these, these, this new hardware, from, from Microsoft, their new, hardware that they're rolling out in their PCs. I'm seeing the new Google smartphones and it's just, they're smart now, right? The AI just works. It doesn't work anymore. And it is, I think the rest of the business world hasn't caught up yet. But I'm telling you in two to five years when apple is no longer a top five company in the world, which you would have asked people five years ago, everyone would have said that'll never happen. Apple will be here in ten, twenty years. They're not. One of the reason is the people.

Jordan Wilson [00:30:05]:
So, they couldn't get it right. So reportedly, and this was, according to some initial reporting from the information and Bloomberg, back two years ago, September 2023, they were reportedly spending millions of dollars per day training generative AI models. And a lot of the reporting at the time, you know, quoting anonymous sources said that Apple's internal models are going to be better than ChatGPT. No, they aren't. Not even making it to production because they're so bad. All right. And then in July, that's really when the Exodus started to happen. And this is why it is, I think, going to be really, really bad for apple in the very near future.

Jordan Wilson [00:30:49]:
So their apple foundation models lead. So the person literally leading their internal model development took a reportedly took a $200,000,000 compensation package, from Meta. So that's, Ruoming Peng, who took that deal. And then Apple, there's been five separate waves of multiple key AI researchers and engineers, five different waves of them lead, leaving, to Metta, OpenAI, DeepMind, and Anthropic in the last two months. So, most reports say it's more than a dozen key people on Apple's AI team. Guess what? They obviously know the ship is on fire. There's a fire internally and they don't want to be around when that thing sinks. And this is the latest sign on the exterior of the ship that says, yeah, we're sinking because we can't get the basics.

Jordan Wilson [00:31:51]:
Right. So we got to team up with Google. It almost wasn't Google though. Right? So, the Bloomberg report did say that, Anthropic was in the discussion, but their demands were a little too much, at least according to what they were offering. But Apple was also reportedly, looking at a perplexity acquisition, but instead chose to, partner with Google just for faster deployment. All right. Which tells you if their preference might've originally been acquiring perplexity, but then someone thankfully said, yeah, maybe we're not equipped to even acquire a company ourselves and put it into production. Maybe we just need to team up and pay someone that just already doing it and have them do the work for us.

Jordan Wilson [00:32:48]:
So again, we're talking about billions of devices and apples. Right? You also have to think of what this means for them being overly dependent on one of their biggest competitors. Google is in such a power position now, because my guess is because Google, I think has been the most impressive company, in the world dating back to I'll say December 2024. Google is on fire. And I think this is actually going to be Apple's redeeming AI moment, but it's coming on the back of Google. So Google is in a huge power position here, because I don't see, even if apple were to acquire perplexity and eventually roll this out in lieu of the Google partnership, I don't think they have the talent to do it. So I personally don't see this partnership going away any time soon. So this is really good for Google and really bad for apple because the only way apple can avoid being the dumb pipe in the room is by leaning on their smart competitor.

Jordan Wilson [00:34:17]:
So is it going to happen? What's this going to look like? When is my Siri gonna be able to do anything? I mean, sometimes I ask it for the weather. It doesn't even tell me the weather I asked for the time and it's like, I can't do that. Right? Some of the most simplest things. So reportedly, March 2026, we can all throw a big party, Apple users. That's when this World Knowledge Answers is expected to launch publicly. This partner, partnership with Google, that's when, the initial phases will launch. But then the, the instances of the World Knowledge Answers going to Safari and Spotlight will reportedly happen at a later date. And also there's some other obviously software updates that are coming built in health features, all these things.

Jordan Wilson [00:35:04]:
But I think the, the big software update people are looking at in March 2026 is just for the smarter Siri. That's if it happens, right? So we'll have to see if there's going to be any, federal probes on anything anti competitive happening here. Also we have to look at how this will impact others specifically OpenAI, Microsoft, and Meta. Right? The other big players in the room, obviously, right now, Apple has a current partnership, with OpenAI. They're currently, you know, trying to power, some of the queries for Siri. So essentially how it works now, if you ask Siri a question, so if you have this enabled in your settings, essentially it will pass certain queries off to ChatGPT as a third party provider. This is not how the new world knowledge answers will work. It will happen under Apple's hood, whereas how they have it set up, the Siri and OpenAI partnership right now is for the majority of things that Siri can't answer.

Jordan Wilson [00:36:20]:
It essentially says, would you like to do this in ChatGPT instead? And at that point, it's kind of passing the problem off to a smarter model. But we do have to talk about how big this is going to be in the landscape because OpenAI currently has that partnership with Apple and they currently have a partnership with Microsoft. Although we see that Microsoft is trying to venture out with other providers as well as working on their own models. So I would expect OpenAI, to have to come up with a trick up its sleeve in terms of being able to still compete with Google. All right. This is obviously a huge boon for Google. It gives them more money. It gives them more prowess.

Jordan Wilson [00:37:09]:
It gives them more devices that they're ultimately working with. So, you also have to look at how the other big three might respond to this big partnership news. All right. Yeah. Accidental hot take Tuesday, Cecilia. I agree. It just happened. Right.

Jordan Wilson [00:37:27]:
All right. So I hope this episode was helpful, but here's in a nutshell what's happening. Apple couldn't get it right. They have failed catastrophically over the years, even though they had all the pieces in place, reportedly spending millions of dollars, They've let essentially their best and brightest AI talent go away to their competitors, and now they're forced to pay their competitor in Google to make it work. So we'll see, but at least according to this breaking Bloomberg reports, March 2026, we may finally get a smarter Siri in world knowledge answers. This specific version of Google Gemini that is going to specifically run this new feature for Apple's AI. And hey, Apple, maybe we can stop calling it Apple Intelligence now, since it's technically Gemini Intelligence. So I don't know.

Jordan Wilson [00:38:26]:
Have we achieved AGI now? Apple Gemini intelligence. Alright. I hope this was helpful. If so, tell someone about it. Don't keep everyday AI as your own secret, as your own cheat code. That'd be rude. If this was helpful, please repost this. Please tell someone about it.

Jordan Wilson [00:38:44]:
If you're listening on the podcast, we appreciate it. Please leave us a rating and follow the show. I'd really appreciate that. And then after all that, please go to youreverydayai.com. Go sign up for our free daily newsletter and join some of the leaders in the industry who learn about AI from us. Thank you for tuning in. Hope to see you back tomorrow and every day for more everyday AI. Thanks, y'all.

Gain Extra Insights With Our Newsletter

Sign up for our newsletter to get more in-depth content on AI