Kuo: Apple's AI Deal with Google Is Temporary and Buys It Time (www.macrumors.com)

Apple is set to mass-produce its own AI-focused server chips by the second half of 2026, as the company temporarily partners with Google to meet pressing AI demands, according to analyst Ming-Chi Kuo. This collaboration comes amid heightened expectations for Apple to deliver impressive AI capabilities, especially following lofty promises related to its Apple Intelligence initiative and Siri upgrades. The partnership with Google allows Apple to leverage powerful AI models while it navigates challenges in its own AI development, particularly as competition intensifies and user expectations evolve rapidly. Kuo emphasizes that this deal is a stopgap solution rather than a permanent pivot, underscoring Apple's long-term strategy to eventually gain full control over core AI technologies. As the demand for on-device and hybrid AI workloads is anticipated to rise significantly by 2027, Apple aims to enhance its hardware differentiation and overall user experience through its in-house chips. By establishing Apple-operated data centers to support faster and more efficient AI processes, the company positions itself to not only catch up with industry advancements but also to define its future in AI innovation.