Apple's take on LLMs reshapes its AI strategy

• Apple leaders reportedly see large language models (LLMs) becoming commodities, which helps explain conservative AI spending.
• Apple maintains an internal models team but appears to favor hardware, software, and services control over costly LLM development.
• The company is exploring partnerships (reportedly with Google) to power Siri while keeping a measured investment posture.
• Analysts say Apple’s restraint could be an advantage if bespoke LLMs lose competitive value.

Why Apple is taking a different path on LLMs

Apple’s recent AI decisions — including delays to some Siri upgrades — have drawn criticism. A new report in The Information adds context: senior Apple leaders reportedly expect LLMs to become commoditized over time.

Leadership view: models may become commodities

The Information quotes Aaron Tilley describing internal sentiment: “Apple still has a team working on its own internal models that it could take advantage of in the future. But some Apple leaders hold the view that large language models will become commodities in the years to come and that spending a fortune now on its own models doesn’t make sense.”

How that belief affects Apple's investment strategy

If Apple expects LLMs to commoditize, it reduces the rationale for pouring billions into custom models now. Instead, Apple appears to prioritize the platforms around AI — the hardware, tightly integrated software, and subscription services where it already has strengths.

Partnerships over parallel R&D

The report also notes Apple is exploring third-party partnerships — including reported talks with Google to power Siri. That approach lets Apple boost Siri’s capabilities without the full cost and risk of training huge models in-house.

Implications for products and competitors

Competitors such as OpenAI, Google, and Meta continue heavy investments in foundational models. Apple’s restraint could pay off if generic LLM technology becomes widely available and differentiation shifts to integration, privacy, and device performance.

What to watch in 2026

Watch for how Apple balances internal model work with partnerships, and whether upcoming Apple Intelligence features emphasize on-device ML, privacy controls, and Apple Silicon optimization. The company’s choices will reveal whether conservative spending was strategic caution or missed opportunity.

Apple’s long-term AI success may hinge less on owning the largest model and more on controlling how AI fits into its ecosystem — from iPhone and macOS to Siri and cloud services.