CNBC's Steve Kovach joins 'Squawk Box' to report on the latest news from Apple, which has reportedly shaken up its AI executive ranks in a bid to turn around Siri.

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 has announced changes to its executive team in an effort to improve its artificial intelligence efforts, particularly focusing on its virtual assistant, Siri. The AI division, previously led by John Giannandrea, will see Mike Rockwell stepping in to head the Siri team. Rockwell was formerly responsible for the Vision Pro headset team. He will report to Craig Federighi, Apple's software chief, who is now overseeing the updated Siri initiative.

The executive reshuffle follows delays in the anticipated rollout of improvements to Siri, which has faced criticism for its performance. Although Apple has not publicly detailed its turnaround plans, it has acknowledged the need for more time to implement a significant AI update for Siri. Discussions are ongoing about when these improvements will be released, with some estimates suggesting a wait until next year or later.

This leadership change is seen as a strategic move as Apple endeavors to build consumer trust and deliver on promised AI enhancements. While John Giannandrea retains his position despite the changes, Apple has previously shown a willingness to replace executives for underperformance, as seen in the past with Scott Forstall. Observers are eager to see what Apple will reveal at its annual Worldwide Developers Conference (WWDC), where future technology updates are typically showcased.



Apple shakes up AI executive ranks

Apple shuffling executive ranks around to address delays in its AI rollout. We said it was to fix Siri. I'm not going to get started. Steve Kovach joins us now with more. I still, when I'm dictating or doing anything, the stuff that that AI program comes up with has never been said by anyone. Yeah. And. Or it tells you to go to Google and figure out the answer. Some of the stuff is that I'm saying is, I don't know, maybe a little more. Look, they were supposed to fix that. And that didn't happen. And so now there's this big exec reorg happening after the failure to ship that big upgrade to Siri that was going to fix all the things you're complaining about. Now, Bloomberg reported on this yesterday. So let me tell you what the changes are going on in these executive ranks. You have Apple's artificial intelligence boss. His name is John Gianandrea. He is actually losing the Siri team. He used to be in charge of that. That's now going over to another executive named Mike Rockwell. He was formerly in charge of the Vision Pro headset team. He's going to be running Siri now. This is also something of a coup for another top Apple exec. That would be software boss Craig Federighi. Rockwell will report to him, putting Federighi ultimately in charge of this big Siri update. And lots of folks have been asking this week and especially yesterday after these moves, why Gianandrea basically only lost the Siri team and not his job. Tim Cook, the CEO, he's fired leaders in the past. Scott Forstall, most famously, he was in charge of iOS. And they put out that bad Apple Maps update back in 2012. That led to his firing. Another interesting angle here with Rockwell running Siri. Yes, when he shipped the Vision Pro, it worked just as advertised. It shipped on time. But it's not a product that's exactly setting the world on fire. And getting Siri AI right is way more important than getting the Vision Pro right, at least in the near-term future for Apple. No word from Apple how they really plan to turn things around. No comment on the news yesterday. All they've said so far is we need more time to get this AI update to Siri working properly. In the meantime, there's just some chatter going around. That's not going to happen until next year at the very earliest. Some people are even talking about 2027 until this happens. So if you're an Apple investor out there and you believe there's an AI iPhone super cycle coming, you're going to have to wait at least another year, guys. All right. So I don't even try now. You shouldn't. Use chat GPT. It's already right there on your phone. No, but like, it shouldn't be where if I'm going to use Siri, not only am I sort of ambivalent about using it, I get mad. Yeah? Does she get mad back at you? She doesn't really get mad, and she should for what I have called her. Oh. Can you say that on TV? No, probably not. But you shouldn't have a visceral feeling about how bad something is. They've got to fix this. And it's been around for almost 14 years since Siri launched. I mean, we all know the problems with it. And I think this is really telling this executive shakeup, though, and this kind of not power struggle, but power shift going on here. And John G. Andrea, that AI executive I told you about, he was hired by Apple several years ago from Google. He has a sterling reputation in the AI industry. And it was a big deal when he got hired. Everyone's like, oh, my God, Apple's taking AI seriously. This is going to be huge. Last year, just ahead of WWDC, when they finally unveiled Apple Intelligence, everyone's like, this is going to be his coming out moment. This is going to be great. And it turns out what they showed us didn't really exist. It was even close to ready. And here we go. By the way, they were advertising these features that we showed that commercial was starring Bela Ramsey. There's now a class action lawsuit going on saying false advertising. There's nothing there. There's nothing there. If I were to read between the lines, it would tell me that whatever they're going to announce in terms of the new Siri AI, whatever it is, is even that much more delayed. I mean, if a new executive team is going to come in and take over, there's got to be some transition time. It's not coming out around the corner. Exactly. And do they have to build this from the ground up? What are they going to do? And we're not going to get our next hint at that until June, where that's when at WWDC, they show off all their new software features. That's where they initially showed Apple Intelligence. And it turned out that just kind of landed with a thud. So what are they going to do to turn this around? And even more importantly, build trust that what they do announce at WWDC is actually going to launch when they say it's going to launch. This new RooOrg, they have their work cut out for them, for sure.

Talks between the U.S. President and Russian President Vladimir Putin concluded without an agreement on ending the war in Ukraine, despite being widely anticipated as a possible turning point.

Anchorage

Ukraine Invasion

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President Trump and Russian President Vladimir Putin met in Alaska for a high-stakes summit over ending the war in Ukraine. Nancy Cordes and Margaret Brennan have coverage and analysis.

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Trump, Putin arrive in Alaska for historic summit

Israel's far-right finance minister approved the construction of a controversial new settlement in the West Bank, saying it "finally buries the idea of a Palestinian state." But it's unclear if this move will actually go through. Rights groups swiftly condemned the plan.

Jerusalem

Middle East Conflict

Israeli finance minister approves new West Bank settlement

U.S. President Donald Trump indicated in an interview that he hoped to push Russian President Vladimir Putin toward a second meeting but acknowledged there was a chance Friday’s meeting would not succeed.

Washington

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Israeli Finance Minister Bezalei Smotrich said a plan to add more than 3,000 homes to a controversial settlement in the West Bank would bury ‘the idea of a Palestinian state.’

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London

Zelenskyy, Starmer meet ahead of Trump, Putin summit in Alaska

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Trump says he thinks Putin and Zelenskyy will make peace

Florida Gov. Ron DeSantis has announced plans to build another immigrant detention center, dubbing it the "Deportation Depot." The facility will be in North Florida.

Jacksonville

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President Trump had a virtual call Wednesday with Ukrainian President Volodymyr Zelenskyy ahead of his meeting with Russian President Vladimir Putin on Friday in Alaska. After the call, Zelenskyy said he told Mr. Trump that "Putin is bluffing."

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U.S. President Donald Trump said he would ask the Republican-controlled Congress to extend federal control of Washington's city police force beyond 30 days, escalating his campaign to exert presidential power over the nation's capital.

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With just hours left to reach a deal on plastics, negotiators in Geneva were scrambling to resolve a deadlock caused by “red lines” of member countries. Nations are crafting the first global, legally binding treaty on plastics pollution at the United Nations office in Switzerland.

Geneva

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At least 123 people have been killed in 24 hours, according to Gaza's Health Ministry. Israeli Prime Minister Benjamin Netanyahu says people will be given the opportunity to leave Gaza before a planned ground offensive, but no one is being pushed out.

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America's NATO allies stood firmly with Ukrainian President Volodymyr Zelenskyy ahead of the face-to-face meeting between President Trump and Russian President Vladimir Putin in Alaska. The European leaders showed a united front that there should be no peace deal without Ukraine's involvement.

Kyiv

NATO allies stand with Ukraine ahead of Trump-Putin summit

U.S. Immigration and Customs Enforcement must improve conditions for detainees at New York's 26 Federal Plaza, a judge ruled Tuesday.

New York

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National Guard troops arrived in Washington, D.C., following President Donald Trump's deployment and federalization of local police to crack down on crime in the nation's capital.

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U.S. President Donald Trump said that he had a "very good call" with Ukrainian President Volodymyr Zelenskyy, days before his scheduled Alaska meeting with Russian President Vladimir Putin.

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Israel's military chief of staff, Lt. Gen. Eyal Zamir, has approved the framework of a plan for a new offensive in Gaza. CBS News Middle East reporter Courtney Kealy has more details.

Israeli military chief approves 'framework' for new Gaza offensive

President Donald Trump said Wednesday there will be “very severe consequences” if Russian President Vladimir Putin doesn’t agree to stop the Ukraine war after Friday’s summit.

Trump warns of 'severe consequences' if Russia doesn't stop war

A Wisconsin woman on Tuesday was found guilty in the United Kingdom of trying to kill a man at point-blank range in 2019. Aimee Betro, 45, was part of a plot with two other co-conspirators to murder Sikander Ali, prosecutors said.

Birmingham

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Record-high temperatures across Europe are fanning wildfires across the continent. Experts say a warming climate and an increase in flammable vegetation from rural depopulation are major factors.

Madrid

Historic heat fuels fires across Europe

Hungary's PM Viktor Orbán said the EU attempts to set conditions for a meeting to which leaders of the EU were not invited. He also called for an EU-Russia summit.

Brussels

EU leaders rally behind Ukraine ahead of Trump-Putin talks

President Trump said Monday he expects that Russia and Ukraine will "land swap" certain territories as part of an eventual ceasefire deal. Mr. Trump is set to meet with Russian President Vladimir Putin in Alaska on Friday.

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Taylor Swift confirmed her 12th studio album, "The Life of a Showgirl," in a teaser for her upcoming appearance on her boyfriend Travis Kelce's podcast. Swift did not disclose the release date of the album.

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U.S. President Donald Trump said that his planned meeting with Russian President Vladimir Putin in Alaska on Friday will be to "feel out" the leader as pressure mounts for Russia and Ukraine to make a peace deal.

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