Apple Executives Reportedly Have a Disagreement About AI Acquisition Deals

Two Apple executives are reportedly at odds over each other's strategy for the company's approach to artificial intelligence (AI). Apple's foray into the AI space has been limited and marred by endless delays. While one reason behind the delay is its late entry into the space, another is its reluctance to invest heavily in technology. As per the report, the Cupertino-based tech giant's cautious approach is due to two senior executives not being able to come to an agreement on whether Apple should acquire an AI startup or not.

Apple's Craig Federighi and Eddy Cue Are Reportedly in Disagreement Over AI

According to The Information (via AppleInsider), Apple's Senior Vice President of Software Engineering, Craig Federighi, and the company's Senior Vice President of Services, Eddy Cue, have recently argued over their different approach on how the tech giant should strategise to catch up to rivals in the AI space.

Cue, who played an instrumental role in Apple's acquisition of Beats in 2014, reportedly holds the belief that making a big-money AI deal is the ideal way for the company to acquire the technology and talent necessary to develop powerful AI tools. On the other hand, Federighi reportedly disagrees with the acquisition approach and believes the tech stack can be developed internally.

The conflict between the two senior executives highlights the ongoing struggles Apple has been facing in pushing out consumer-focused AI features. While Cue has reportedly shortlisted Perplexity, the maker of the AI-powered answer engine, and Paris-based Mistral as potential targets for acquisition, the senior leadership is said to be concerned about whether the value of the acquisition can justify the friction of integrating the company. The price of the deal is said to be trivial.

When it comes to big money acquisitions, Apple's approach has generally been cautious. With the exception of the Beats acquisition in 2014 and the modem unit of Intel in 2019, the company has stayed away from billion-dollar deals.

However, with Meta's aggressive hiring spree and reverse acquihire strategy, and similar push for AI by companies such as Google, OpenAI, and Microsoft, whether a cautious approach will work or not cannot be said conclusively.