The deeper issue, in my view, is that Apple is violating its own philosophical belief, articulated by Steve Jobs himself: that Apple should always own the primary technology behind its products (i.e., multi-touch, click-wheel). This is central to Apple's "we need to make it ourselves" approach.
Camera lenses are commodities. AI models are foundational. Apple's own executive leadership likened models to the internet, and said, well surely we wouldn't try to build and own the internet! This misplaces AI as infrastructure when in fact it's foundational to building and serving useful applications.
They further see "chat" (and by extension) as an app, but I think it's more like a foundational user interface. And Apple's certainly always owned the user interface.
When Siri was first announced, there was excitement that voice might be the next paradigm shift in user interface. Partly because Siri is so bad for a decade now, and partly because people didn't feel like talking to their screens, Apple may have learned a very unhelpful lesson: that Siri is just a feature, not a user interface. In this age though, chat and voice are more than features, and yet Apple doesn't own this either.
Apple should not buy Perplexity. Perplexity is smoke and mirrors, and there's nothing defensible about its business. Apple cannot get the talent and the infrastructure to catch up on models.
So what then?
OpenAI is not for sale. Anthropic is likely not for sale, but even if it were, Apple wouldn't buy it: Anthropic is very risky to Apple's profit margin profile and Apple can't unlock Anthropic's bottleneck (capacity).
In fact, to Apple's advantage, why not let the VCs and competitors like Microsoft and Amazon and Google light their money on fire while this industry takes shape, provided you have an option in the end to sell a product to the consumer?
The best option, in my view, is Search Deal Redux: partner deeply with Google and Gemini. Google very obviously wants as much distribution as possible, and Apple has more hardware distribution than any company in history.
Partnership is the only path because, yes, Apple missed this one badly. There is one area where I agree with Tim Cook, though: being late doesn't guarantee you lose, even in AI.
https://genai-showdown.specr.net
This model gets 8 of the 12 prompts correct and easily comes within striking distance of the best-in-class models Imagen and gpt-image-1 and is a significant upgrade over the old Gemini Flash 2.0 model. The reigning champ, gpt-image-1, only manages to edge out Flash 2.5 on the maze and 9-pointed star.
What's honestly most astonishing to me is how long gpt-image-1 has remained at the top of the class - closing in on half a year which is basically a lifetime in this field. Though fair warning, gpt-image-1 is borderline useless as an "editor" since it almost always changes the whole image instead of doing localized inpainting-style edits like Kontext, Qwen, or Nano-Banana.
Comparison of gpt-image-1, flash, and imagen.
https://genai-showdown.specr.net?models=OPENAI_4O%2CIMAGEN_4...