Apple and AI: Partnership with Google as a transitional solution Apfelpatient

Growing competition in artificial intelligence is putting increasing pressure on Apple. While other tech companies are rapidly improving their cloud-based AI models, Apple faces the challenge of meeting high expectations without losing long-term control over core technologies. A recent report by renowned analyst Ming-Chi Kuo explains why Apple's current AI deal with Google should primarily be seen as a temporary solution.

For years, Apple has pursued the goal of developing key technologies in-house and deeply integrating them into its hardware, software, and services. However, this principle is coming under pressure in the field of AI. The speed at which large AI models and cloud-based systems are evolving has drastically changed expectations for digital assistants and system-wide AI capabilities. It is precisely at this stage that Apple is turning to external support, without abandoning its long-term ambitions.

Short-term AI pressure shapes Apple's strategy

According to Kuo, Apple is currently under considerable short-term pressure in the AI field. This pressure is significantly influencing the company's current strategy. In a post on the X platform, the analyst explained that while Apple wants to maintain control over its AI technologies in the long term, it is forced to make pragmatic decisions in the short term.

Two key challenges in Apple's AI development

Kuo cites two specific problems that prompted Apple to partner with Google. The first is the need to deliver a compelling AI presentation at this year's WWDC. Previously, Apple had announced, among other things, Apple Intelligence and extensive improvements to Siri, which have not yet been fully implemented.

The second point concerns the enormous pace of development of cloud-based AI systems. These advances have raised expectations so much that even fulfilling Apple's previous promises may no longer be enough to be perceived as competitive.

Changing expectations of AI and digital assistants

With the rapid advancement of modern AI models, user perceptions have also changed. What is considered a powerful assistant or system-wide AI today is more sophisticated than it was just a few years ago. Kuo argues that even a fully implemented version of Apple Intelligence would struggle to clearly differentiate itself without access to particularly powerful, large-scale models. Apple is currently attempting to close precisely this gap by utilizing external AI models.

The AI deal with Google as an interim solution

According to Kuo, the AI agreement with Google is not a long-term strategic shift. Rather, it serves to reduce short-term pressure and buy Apple time. He believes that AI features on devices alone will not have a significant impact on hardware sales in the short term. However, the partnership allows Apple to better manage expectations for its platforms while its internal AI development continues.

Developing our own AI server chips as a long-term goal

Apple places great importance on owning its own key AI technologies in the long term. According to Kuo, the company plans to begin mass production of its own AI-focused server chips in the second half of 2026. Apple's data centers are expected to go online in 2027.

This timeline suggests that Apple anticipates a significant increase in demand for on-device and hybrid AI workloads starting in 2027. With greater control over server-side data processing and infrastructure, Apple could leverage AI more effectively to differentiate hardware, shape operating systems, and enhance the overall user experience.

Apple's AI strategy: between current pressures and future planning

Ming-Chi Kuo's report makes it clear that Apple's AI deal with Google is primarily a pragmatic interim solution. Apple is responding to short-term pressures and increased expectations without losing sight of its long-term vision. With its own AI server chips and data centers starting in 2026 and 2027, the company is preparing for a phase in which artificial intelligence will play a central role in products, platforms, and the entire ecosystem. (Image: Shutterstock / Primakov)