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Apple is allegedly separating its artificial intelligence (AI) business and moving two major product divisions. According to the source, the Cupertino-based tech firm is now relocating its covert robotics section to the hardware engineering division, after the relocation of Siri to the software engineering organization in March. The process of transferring major projects away from the AI division allegedly began in 2021, when Apple relocated the self-driving vehicle project from the AI division to Kevin Lynch, Apple's VP of Technology and the person in charge of watchOS development.
Apple Plans to Bring Back Its Functional Organization
Bloomberg's Mark Gurman reports in his current Power On newsletter that Apple is looking to revamp its AI group after six years. Prior to 2018, the tech giant's organizational hierarchy was functional rather than product-based. This implies that instead of having distinct iPhone and Apple Watch divisions, the business had hardware engineering, software engineering, and services divisions that focused on various aspects of the devices.
To focus on AI technology, the business appointed John Giannandrea as Senior Vice President of Machine Learning and AI Strategy (ex-Google). Soon after, Apple allegedly began combining multiple AI operations under his guidance. This is supposed to include initiatives like Siri, Apple Intelligence, the now-defunct self-driving vehicles, and the secretive robotics division. This was claimed to be a first for the IT behemoth, as it deviated from its functional structure.
According to Gurman, Apple is suddenly calculating losses six years after creating the division. The tech titan apparently believes it has slipped behind competitors in AI, and after several delays in the delivery of Apple Intelligence features — most notably Siri updates — it is now pondering the future of the AI business.
Giannandrea apparently lost Siri in March, and it was subsequently passed over to Mike Rockwell, who is overseeing the visionOS development team. Gurman now asserts that the robotics group is transitioning away from the AI division and will be taken over by the company's hardware engineering department, overseen by John Ternus.
Apple's robots division is allegedly a major priority for the firm. According to a story from earlier this year, the tech giant is working on non-humanoid robots, with the first items entering production in 2028.
According to Bloomberg, the removal of projects from the AI branch reflects the company's growing displeasure with Giannandrea. Apple is reported to be planning for his future departure, and the post is unlikely to be filled, according to Gurman. Instead, the IT behemoth is expected to return to its functional organizational hierarchy that existed before to 2018.
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