Apple makes a huge bet on AI models becoming commodities (www.businessinsider.com)

Apple is set to integrate Google's Gemini AI into its Siri digital assistant, marking a pivotal shift in its AI strategy. This move allows Apple to remain flexible and cost-effective by enabling the swapping of AI providers as necessary. Rather than racing to develop proprietary models like competitors such as Google or OpenAI, Apple is adopting a model-agnostic architecture for Siri, codenamed Campos. This new approach, which is scheduled for launch later this year across Apple devices, signifies a strategic pivot where user experience and distribution take precedence over AI model development. This decision reflects Apple's belief that AI models will soon become commoditized, making quality roughly interchangeable across providers. By focusing on integration, privacy, and user experience, Apple positions itself to select the most beneficial and cost-effective AI solutions over time. This could also potentially allow Apple to reverse its current relationship with AI providers, similar to its existing arrangement with Google for search, where AI models might pay for access to Apple’s extensive user base. Ultimately, while Apple saves significantly on capital expenditures compared to its rivals, it is betting on a future where controlling the interface, rather than the AI model itself, will yield competitive advantage.