A closer look at Apple's AI strategy: Project Greymatter, local and cloud LLM data processing, Siri, sealing a chatbot partnership deal with OpenAI, and more

Though Apple's first set of modern AI features won't be as impressive as rival offerings, the company is betting that its massive customer base can give it an edge.

Bloomberg 2024-05-28 Mark Gurman

Context & Ripple Effects

This report extends the prior outline of Project Greymatter by tying Apple’s AI effort to a hybrid model: some LLM work on-device, some in the cloud, and Siri as a principal product surface. The strategy matters because Apple is explicitly leaning on installed-base distribution while acknowledging its initial feature set may trail rivals.

The arc also foreshadows execution risk: follow-on coverage found the new Siri absent from the iOS 18 beta and many features delayed, while later reporting described an AI strategy reset around a Gemini-powered Siri.

First-order effects

Apple must coordinate on-device and cloud LLM processing as it brings modern AI capabilities to Siri and other customer-facing features.
An OpenAI chatbot partnership would give Apple an external model option while it develops Project Greymatter, rather than relying solely on its own first-generation capabilities.

Second-order effects

Siri becomes the key test of whether Apple can turn AI distribution into regular user adoption; delayed or limited features would leave more room for competing assistants and chatbots.
The hybrid design creates a product and infrastructure trade-off: Apple can reserve some tasks for devices while using cloud systems for others, making the boundary between the two central to feature design and rollout.

Third-order effects

If this approach holds, consumer AI competition will turn less on a single frontier model and more on integrating multiple models and compute locations into established device ecosystems.
Partnerships with chatbot providers may become a durable complement to proprietary AI stacks, particularly for platform companies seeking broad AI coverage before their in-house systems match leaders.

The trend: Apple’s plan is one data point in the shift toward hybrid, distribution-led AI products that combine on-device capabilities, cloud processing, and external model partners.

Discussion

@mergesort Joe Fabisevich on threads
If Apple does unveil some sort of chat bot functionality at WWDC24 I wonder if they'd plop it right into iMessage. Both to use inside of a chat with friends, but also a special chat or type of chat that you can message to ask something like “what's the score of the Mets game”, t…
@bzamayo Benjamin Mayo on threads
Apple is so behind they are still blogging about machine learning when the whole industry has moved on to artificial intelligence https://machinelearning.apple.com/
@bzamayo Benjamin Mayo on threads
hey siri make me an emoji that looks like scarlett johansson
@davemark@mastodon.social Dave Mark on mastodon
From @markgurman on #Apple and #WWDC — “The Siri personal assistant will get an upgrade as well, with more natural-sounding interactions based on Apple's own large language models” — To me, two biggest Siri needs are: — More reliable understanding — Context (for follow-up ?s…
@markgurman Mark Gurman on x
Power On: Inside Apple's generative AI plan and iOS 18, including new features like AI-created Emojis, extensive Home Screen customization and a big focus on summarizing information https://www.bloomberg.com/...
@carnage4life Dare Obasanjo on x
The bet that AI hardware startups like Humane and Rabbit made was that Siri sucks so bad that people would buy another device to talk to ChatGPT instead. They missed the most obvious alternative which is that Apple would just integrate ChatGPT themselves. Game over 👾 [image]
@staska Stasys Bielinis on x
@steven_aquino I also still think that Apple is probably fine, has been doing this AI stuff for years, and has enough time to catch up wherever they are behind. And they are definitely behind in LLMs But a couple of things worry me. Siri and Nokia. The analogy may be rather stret…
@steven_aquino Steven Aquino on x
The “Apple is behind in AI” narrative is super dumb because FIRST! but also because Apple's done AI in plain sight re: accessibility forever—it's just the company isn't doing it with as much flash as others. To wit... •Personal Voice •Detection Modes in Magnifier •Listen for
@gartenberg Michael Gartenberg on x
“the company may announce an iOS 18 feature to let users change their app icons to different colors” 😳 iOS users have been clamoring for this feature for years. #coursge https://www.theverge.com/...
@betaprofiles @betaprofiles on x
In iOS 18, Apple is reportedly going to let users create custom emojis using Generative AI, based on what you're texting. It seems like the Emoji Keyboard isn't enough for Apple—they want even more emojis in iOS 18 🤣 Source: Mark Gurman [image]
@parkerortolani Parker Ortolani on x
So curious how they'll recolor app icons. Are they going to have to be updated by each developer with some sort of layered tvOS approach? Are they just going to apply color filters? Will they encourage the use of more glyphs, maybe even SF symbols as icons? Should be interest…
@parkerortolani Parker Ortolani on x
Little nervous about AI feature parity with visionOS and iPadOS. @markgurman specifically calls out iOS and macOS. Hope they don't stiff us this year with too many platform specific features. https://www.bloomberg.com/...
@saschasegan Sascha Segan on x
The buzziest part of the iPhone rumors is the part I thought was least important and clearly I have no joy in my heart
@brandonbutch Brandon Butch on x
This is a start.. but PLEASE let us choose custom app icons without relying on Shortcuts.
@sdw Sebastiaan de With on x
iOS 18 rumors quickly went from ‘wow this sounds rad’ to a designer's worst nightmare [image]
@ashleevance Ashlee Vance on x
How much does the person in charge of AI emojis get paid per year?
@dinodaizovi Dino A. Dai Zovi on x
Apple seems to be more mature in deciding what to apply AI to compared to rushing in only to have it tell people to do dangerous things like run off of cliffs, cook with gasoline, eat glue, etc.
@autismcapital @autismcapital on x
🚨 There'll be no OpenAI chatbot integrated into Apple's iOS18 but on the plus side you get...generative emojis... [image]
@gartenberg Michael Gartenberg on x
So basically Apple devices will be capable of doing the most basic tasks that Android users have had for a year. Good news for Apple is anything introduced will be reported as trailblazing and market leadership. Never underestimate Apple marketing. https://www.theverge.com/...
@saranbyte Saran on x
Pretty fun feature! Hope it's implemented in a similar way to how it works on Gboard with Android
@spercharged @spercharged on x
NEWS: The Apple Watch and watchOS 11 will gain new AI-powered Siri capabilities, just like the iPhone and iOS 18, according to @markgurman. [image]
@leakerapple @leakerapple on x
@markgurman I'm a bit confused. Here you said Apple will be using their own LLM for the revamped Siri, but you also said they'll be partnering with OpenAI for a chatbot. So will Siri be using Apple's LLM or OpenAI's? [image]
r/technology r on reddit
Apple Bets That Its Giant User Base Will Help It Win in AI
r/technology r on reddit
Report: Apple signs deal with OpenAI for iOS, still wants Google as an ‘option’
r/singularity r on reddit
Thoughts from r/singularity on this one?
r/ChatGPT r on reddit
Apple Bets That Its Giant User Base Will Help It Win in AI
r/apple r on reddit
Apple Bets That Its Giant User Base Will Help It Win in AI
r/OpenAI r on reddit
Apple Bets That Its Giant User Base Will Help It Win in AI

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