Apple is making major structural changes to its AI division, just as it prepares for one of its most closely watched earnings reports in recent years. After falling behind competitors like Google, Amazon, and OpenAI in artificial intelligence and machine learning, Apple is shifting away from a centralized AI leadership structure. The company initially hired Google’s former AI chief, John Giannandrea, in 2018 in hopes of unifying AI efforts and regaining its lead. However, this approach has not delivered the results Apple had hoped for.
As a result, Apple is now reverting to its traditional functional model, moving components of the AI division back into other parts of the company. Siri has been transferred to software engineering, while the robotics team is being shifted to hardware. This reflects a return to a model where teams are divided based on their technical function rather than a centralized AI strategy.
These changes come just ahead of Apple’s upcoming earnings call, which analysts expect to focus heavily on AI, U.S.–China trade tensions, supply chain shifts to India, and how Apple is responding to political and technological challenges. Many believe the real story will be in the questions Apple is forced to answer—not just the numbers it reports.
Vocabulary:
• restructure (verb): to change the organization of something
• division (noun): a department or part of a company
• scattered (adj): spread out across different places
• functional (adj): based on specific roles or operations
• engineering (noun): the design and building of machines or systems
• approach (noun): a way of dealing with something
• earning (noun): profits or financial results of a company
• tariff (noun): taxes on imports or exports
• remark (noun): spoken or written comments
• analyst (noun): someone who studies data or performance to give insights
• innovation (noun): the introduction of new ideas or technologies
• prepared (adj): ready in advance
• brace (verb): to get ready for something difficult or unexpected
Source: Bloomberg Technology