NYT: Apple's AI Struggles Began with 2023 Chip Budget Dispute

Apple's current struggles with Apple Intelligence and Siri began in early 2023 when AI head John Giannandrea sought approval from CEO Tim Cook to purchase more AI chips for development, according to a new report from The New York Times.

Cook initially approved doubling the team's chip budget, but CFO Luca Maestri reportedly reduced the increase to less than half that amount, and instead encouraged the team to make existing chips more efficient.

The lack of adequate GPU resources meant Apple's AI team had to negotiate for computing power from providers like Google and Amazon.

At the time, Apple's data centers had about 50,000 GPUs that were more than five years old – far fewer than the hundreds of thousands of chips being purchased by competitors like Microsoft, Google, and Meta.

The NYT report goes on to cover the leadership conflicts within the company, describing a power struggle between Robby Walker, who oversaw Siri, and Sebastien Marineau-Mes, a senior executive with the software team. The two reportedly battled over who would spearhead Siri's new capabilities, with both ultimately receiving pieces of the project.

Apple Intelligence faced significant delays after internal testing revealed Siri was inaccurate on nearly a third of requests. Apple subsequently admitted that it would take longer than expected to roll out the more personalized ‌Siri‌ experience, and that these features will be rolled out "in the coming year."

However, according to the report, Apple still plans to release its enhanced Siri experience this fall. The functionality includes personal context, onscreen awareness, and improved app integration. Some Apple executives reportedly aren't concerned about the delay, and believe competitors haven't perfected AI either, giving Apple time to get it right.

Following the delay, software chief Craig Federighi reorganized executives, removing responsibility for the new Siri from Giannandrea and reassigning it to Mike Rockwell, who leads the Vision Pro division. The details of Apple's Siri team changes and the delayed Siri revamp were previously reported by Bloomberg and The Information.

For more details on Apple's internal issues, including political infighting, budget constraints, and talent drain, see The New York Times' full report.