Name: Apple at 50 is betting its AI future on the device
Uploaded: 2026-04-02T20:18:40.803Z
Duration: 2 min 17 s
Description: CNBC’s MacKenzie Sigalos reports on how Apple is leaning on outside models for now while positioning itself to win if AI shifts from the cloud to consumer hardware.

CNBC’s MacKenzie Sigalos reports on how Apple is leaning on outside models for now while positioning itself to win if AI shifts from the cloud to consumer hardware.

Cupertino

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Apple, celebrating its 50th anniversary, is reevaluating its position in the artificial intelligence race after falling behind competitors who invested heavily in cloud-based AI and large-scale data training. Insights from former Apple executives and engineers indicate that the company's strong privacy culture contributed to its slower adoption of generative AI technologies.

To address this, Apple is reportedly opening Siri to external chatbots and leveraging Google's Gemini, marking a significant shift in strategy. Rather than outspending rivals on cloud infrastructure, Apple is betting on its traditional strength: integrating AI directly onto its devices within its established ecosystem, a move that could give it an advantage as AI models become more efficient and device-friendly.

Apple at 50 is betting its AI future on the device

Apple has just turned 50. This company was once at the forefront of the consumer tech race with iMacs, iPods and iPhones. The question now, though, is if it's fallen behind on the A.I. race. CNBC's Mackenzie Sagalos has more. As Apple marks its 50th anniversary, the big question is whether the company squandered its lead in A.I. To answer that, I went straight to the people who helped build Apple. Steve Wozniak, former CEO John Sculley and the engineers behind the iPod, iPhone and Siri. People who were there for some of the most important chapters in the company's rise. And what they told me is that, yes, Apple lost the first round of A.I. and with it, a multi-year head start. In part because the same privacy culture that helped define Apple also left it poorly suited to the first phase of generative A.I., which rewarded companies willing to train on enormous amounts of data and spend heavily on cloud infrastructure. That was never Apple's model. So now Apple's doing something that once would have seemed almost unthinkable for a company so committed to controlling its own stack. It's opening Siri to outside chatbots, reportedly, and leaning on Google's Gemini to help rebuild the experience. But the people I spoke with do not see that as surrender. They see it as a stopgap, a familiar Apple move. Partner, learn, then build it yourself. It's done that before with maps, with chips and with other core technologies. Right now, A.I. is still a cloud business. The models behind Chatshubuti, Clod and Gemini are too large to run well on a phone, but they're getting smaller and fast. And when more of that intelligence shifts onto the device, the company that controls the hardware, operating system and customer relationship will have the edge. That's Apple's bet. While Microsoft, Alphabet and Amazon are set to collectively spend $100 billion to $200 billion apiece on CapEx just this year, Apple's spending closer to $14 billion, backed by more than $145 billion in liquid assets. So rather than trying to outspend everyone in the model wars, Apple is betting that it can still win where it's always been strongest, on the device, inside the ecosystem that it already owns. For CNBC Business News, I'm Mackenzie Sagalos in San Francisco.

French President Emmanuel Macron said U.S. President Donald Trump's mocking comments about his marriage did not merit a response, calling them "neither elegant nor appropriate" for the situation.

Paris

Macron says Trump marriage comments do not 'merit response'

U.S. President Donald Trump has announced that Pam Bondi is out as attorney general, in his second major cabinet-level shake-up in less than a month. Deputy Attorney General Todd Blanche will temporarily replace Bondi in an interim capacity.

Washington

Trump fires Pam Bondi as U.S. attorney general

President Donald Trump said the U.S. is close to its war goals in Iran, aiming to destroy missile production and block nuclear ambitions. Oil prices jumped and markets fell after Trump's first address since the war began.

Iran Strikes

Middle East Conflict

Trump says U.S. nears war goals in Iran as markets slide

NASA’s historic Artemis II mission to the moon launched Wednesday evening, taking four astronauts into Earth's orbit and on a path toward the world's first crewed lunar mission in a generation, beginning a journey into remarkable territory.

Florida

Artemis II launches as NASA shoots for the Moon in historic mission

President Trump addressed the nation about the Iran war Wednesday night, saying that the U.S. would complete its mission there "very shortly." He also sought to assure Americans that the conflict with Iran would be brief compared to other wars in U.S. history and insisted that gas prices would go down quickly.

Trump says Iran war objectives 'nearing completion' in address to the nation

The first payment to Ukraine under the €90 billion loan could happen in a matter of days after Hungary lifts its veto. EU officials, however, concede the dispute will be solved only after the country goes to the polls on April 12.

Brussels

Ukraine Invasion

EU readies first payment to Ukraine as soon as Hungary lifts veto

U.S. President Donald Trump is again threatening to pull the United States out of NATO, calling European allies "cowards" for their refusal to support the joint U.S.-Israeli war against Iran.

Trump renews NATO attacks as Europe rejects role in Iran war

President Donald Trump became the first sitting U.S. president to attend a Supreme Court hearing after showing up on Wednesday (April 1) to listen to arguments on his birthright citizenship executive order.

Trump becomes first sitting president to attend Supreme Court hearing

American journalist Shelly Kittleson, who was kidnapped in Iraq, was concerned about her safety before she was taken, one of her editors tells CBS News' Chris Livesay.

Baghdad

American journalist Shelly Kittleson kidnapped in Iraq

The Artemis II mission to the moon is expected in a few hours if all goes according to plan. Linda Godwin, a retired astronaut and professor emeritus at the University of Missouri, joins CBS News with more.

Cape Canaveral

NASA's Artemis II mission set to launch

Golf legend Tiger Woods said on Instagram that he's "stepping away for a period of time to seek treatment" and focus on his health following his DUI arrest after a car crash in Florida last week. His announcement comes as court documents reveal new details about his arrest.

Jupiter

Tiger Woods seeks treatment after DUI arrest

U.S. President Donald Trump says operations in the Middle East will end in 2 to 3 weeks, but the administration wouldn't confirm if it's planning a ground invasion. Secretary of War Pete Hegseth said the U.S. prefers a peace deal, adding, 'In the meantime we'll negotiate with bombs.'

Hegseth says Iran deal preferable, U.S. will 'negotiate with bombs'

Trump targets birthright citizenship as the Supreme Court reopens the 14th Amendment battle, sparking protests and fears for U.S. identity.

Trump to challenge U.S. birthright citizenship in Supreme Court

Heavy strikes hit Lebanon's capital Beirut overnight as Israel claimed it had struck a "senior Hezbollah commander" and another member of the group. Israeli Defence Minister Israel Katz said his country's military intends to occupy a swathe of southern Lebanon.

Beirut

Israeli strikes kill seven in Beirut as it vows to occupy southern Lebanon

Syria's president has met with UK Prime Minister Keir Starmer in London to discuss the return of Syrian refugees and potential British investment in his country. Ahmed al-Sharaa is trying to drum up support in Europe for Syria's economic recovery after years of conflict.

London

Syrian president Al-Sharaa meets UK PM Starmer in London

President Trump lashed out at European allies who he said haven't done enough to help reopen the Strait of Hormuz to oil tanker traffic. Weijia Jiang has details.

Trump lashes out at European allies over Strait of Hormuz

U.S. Defense Secretary Pete Hegseth has called on NATO allies to help reopen the Strait of Hormuz, which has been effectively closed by Iran during the ongoing war.

Pentagon chief calls on NATO to act on Strait of Hormuz crisis

The U.S. Supreme Court ruled on Tuesday (March 31) in the case of a Colorado law banning conversion therapy for minors. Justice Ketanji Brown Jackson was the lone dissenter.

Supreme Court rules against Colorado youth 'conversion therapy' ban

Spain's airspace is now closed to U.S. planes involved in attacks on Iran, a step beyond its previous denial of use of jointly operated military bases. Prime Minister Pedro Sanchez has become one of the most vocal critics of the U.S. and Israeli attacks in Iran.

Madrid

Spain closes airspace to U.S. planes involved in attacks on Iran

The FBI says the synagogue attack earlier in March was inspired by Hezbollah, targeting Michigan’s largest Jewish temple with a truck packed with fuel.

West Bloomfield Township

FBI: Michigan synagogue attack inspired by Iran-backed Hezbollah

High Representative Kaja Kallas gathered EU foreign ministers in Kyiv to honor the victims of the Bucha massacre, which has since then come to symbolize the search for justice and accountability in Ukraine.

Bucha

EU, except Hungary, vow accountability for war crimes in Ukraine

U.S. President Donald Trump has told aides that he is willing to end the U.S.-Israeli war with Iran even if the Strait of Hormuz remains largely closed, The Wall Street Journal reported, citing officials.

Trump willing to end war even if Strait of Hormuz stays closed: report

A new court filing reveals defense attorneys for Tyler Robinson, the man accused of killing Charlie Kirk, claim an ATF analysis could not conclusively connect the bullet that killed Kirk to the gun Robinson allegedly used. Now the lawyers are asking to delay Robinson's preliminary hearing to review the evidence.

Salt Lake City

Questions raised about bullet used to kill Charlie Kirk

A Tehran resident told CBS News many people have given up hope that the war will help topple the regime, adding that it is "ready at any cost" to stay in power. Meanwhile, U.S. President Donald Trump has renewed threats to strike Iran's power plants.

Tehran

Trump continues Iran threats amid hopes for peace

Israeli Prime Minister Benjamin Netanyahu, Trump's partner in attacking Iran, said more than half of his military aims had been achieved, but both leaders refused to put a timeline on an operation that has ignited a month-long regional war and jolted global markets.

Jerusalem

Netanyahu says Iran war goals achieved 'beyond halfway point'

The White House said U.S. sanctions policy toward Cuba remains unchanged, even as a sanctioned Russian oil tanker was allowed to deliver fuel to the island on humanitarian grounds. The United States suspended Venezuela's oil exports to Cuba after American forces captured Venezuelan President Nicolas Maduro in early January.

Havana

U.S. says Cuba sanctions unchanged as Russian oil tanker allowed entry

About 90% of Iran’s crude oil exports leave the country via the small island in the Persian Gulf's north, much of it destined for China and other Asian markets.

Kharg

Trump threatens to obliterate Kharg Island if no deal reached soon

Iran issued a warning to the U.S., against a possible ground invasion as both sides continue to launch air and missile strikes. Holly Williams has the latest.

Iran warns against U.S. launching ground operation

Millions of people protested at "No Kings" rallies across the U.S. and Europe over the weekend against the Trump administration's policies and the war in Iran. Organizers estimate at least 8 million participated in more than 3,300 protests worldwide.

Millions protest Trump administration at 'No Kings' rallies

With Marines and the Army's 82nd Airborne Division amassing in the Middle East, President Trump on Air Force One wouldn't confirm if U.S. forces will head into Iran for a ground operation, only saying, "I just have lots of alternatives." It comes as members of both parties have voiced concerns.

Apple at 50 is betting its AI future on the device

Breakdown

See The Full Story

Rise of AI