Apple Inc. is reportedly in early discussions with Google to potentially use the Gemini AI model for a significant revamp of its Siri voice assistant. This move comes as Apple faces delays in upgrading Siri, with the company now considering external AI partnerships to enhance its voice assistant capabilities.

Potential Collaboration with Google

According to sources familiar with the matter, Apple has approached Google about building a custom AI model for the new Siri. Google has reportedly begun training on a model that could run on Apple's servers, signaling a potential collaboration between the two tech giants in the AI space.

Internal Restructuring and AI Development

The news of potential external partnerships comes amid internal changes at Apple:

• The Siri upgrade has been postponed due to engineering setbacks.
• Apple's AI chief, John Giannandrea, has been sidelined from Siri development.
• The project is now overseen by Craig Federighi and Mike Rockwell.

Internally, Apple is testing two versions of the revamped Siri:

1. 'Linwood' - powered by Apple's own AI models
2. 'Glenwood' - using external technology

Exploring Multiple AI Partnerships

While talks with Google are ongoing, Apple is considering other AI partners:

• The company has held discussions with Anthropic and OpenAI for potential partnerships.
• These exploratory talks suggest Apple is seriously considering external AI technology to boost Siri's capabilities.

Challenges in Apple's AI Team

Apple's AI efforts have faced some setbacks:

• The company's AI models team has experienced notable departures.
• Chief architect Ruoming Pang left for Meta.

Market Response

The news of potential collaboration between Apple and Google has been well-received by investors:

• Apple shares rose 1.40% following the news.
• Google's parent company Alphabet saw its stock climb 2.90%.

Current Status of Negotiations

It's important to note that while discussions are underway, the situation remains fluid:

• No formal commercial negotiations are currently taking place.
• Apple is still several weeks away from deciding whether to use internal or external AI models for Siri's revamp.

Foxconn Recalls Chinese Engineers from India Factory

In a separate development affecting Apple's supply chain, Foxconn Technology Group has recalled approximately 300 Chinese engineers from its Yuzhan Technology component factory in Tamil Nadu, India. This marks the second such withdrawal in recent months. The company is replacing departing Chinese staff with Taiwanese engineers.

The Yuzhan factory, which produces enclosures and display modules for older iPhone models, began production months ago. This move follows Beijing officials verbally encouraging regulatory agencies to curb technology transfers and equipment exports to India and Southeast Asia.

The withdrawal threatens Apple's efforts to rapidly localize its supply chain in India. However, the company can mitigate the impact by increasing display imports and relying on other local suppliers for enclosures.

Despite these challenges, Apple is making progress in its Indian manufacturing efforts. The company is producing all four iPhone 17 models in India ahead of their debut, marking the first time all new variations will ship from India from launch.

As the AI landscape continues to evolve rapidly, and supply chain dynamics shift, these developments could significantly impact Apple's strategies in both AI integration and global manufacturing. Stakeholders will be watching closely as Apple navigates these challenges and opportunities in the coming months.

Apple Inc., the tech giant known for its innovative products, is setting its sights on an expansive artificial intelligence (AI) hardware roadmap that could reshape the smart home landscape. The company's plans include the development of home robots, a redesigned Siri voice assistant, smart displays, and security cameras, signaling a significant push into the AI-powered home device market.

Tabletop Robot: The Centerpiece of Apple's AI Vision

At the heart of Apple's AI hardware strategy is an ambitious tabletop robot, slated for release in 2027. This device is expected to feature an iPad-sized display mounted on a motorized arm, bringing a new level of interactivity to home automation. The robot will be powered by a revamped version of Siri, leveraging large language models to enable multi-person conversations and provide context-aware suggestions.

Smart Displays and the 'Charismatic' OS

Apple is also working on a smart speaker with a built-in display, targeted for launch by mid-2026. This device will run on a new operating system called 'Charismatic,' which will incorporate facial recognition technology to offer personalized user experiences. This move positions Apple to compete more directly with existing smart display offerings from competitors like Amazon and Google.

Enhanced Home Security Offerings

The company's AI hardware roadmap extends to home security, with plans to develop battery-powered security cameras equipped with facial recognition and infrared sensors. Additionally, Apple is working on a facial recognition doorbell, aiming to challenge established players in the smart home security market such as Amazon Ring and Google Nest.

Siri Upgrade: The Software Backbone

Underpinning these hardware innovations is a significant upgrade to Siri, Apple's voice assistant. The company is pursuing two internal projects to enhance Siri's capabilities:

1. Project Linwood: Focuses on developing Apple's own foundation models.
2. Project Glenwood: Explores the integration of third-party AI, such as Anthropic's Claude.

These efforts could result in a major Siri upgrade as early as next spring, potentially revolutionizing how users interact with Apple's ecosystem of devices.

Strategic Shift Amid Slowing Growth

This ambitious foray into AI-powered home devices comes at a crucial time for Apple. The company has faced slowing growth in its flagship product lines and criticism for lagging behind in the generative AI race. By broadening its product portfolio with these AI-driven innovations, Apple aims to tap into new market segments and reinvigorate its growth trajectory.

As Apple embarks on this AI-centric journey, the tech industry and consumers alike will be watching closely to see how these ambitious plans materialize and potentially reshape the smart home landscape.