【AI+AAPL】Apple Negotiates with Google to Deploy Servers for New Siri Private Cloud Infrastructure Faces "Bottleneck"

According to the US tech media The Information, citing sources familiar with the matter, Apple (AAPL) has requested Google (GOOGL) to conduct a feasibility study on deploying dedicated servers within its data centers to run a new version of Siri powered by Gemini. It is reported that the plan must meet Apple’s strict privacy standards.

The media pointed out that once the new Siri gains widespread user adoption, the demand for AI computing power could rise rapidly, putting existing infrastructure under severe pressure. Apple and Google are discussing hosting the new Siri partly to proactively prepare for a potential surge in computing needs.

For years, Apple has prohibited AI engineers from using Google Cloud due to privacy concerns. It wasn’t until 2023, after Google upgraded its security systems to meet Apple’s privacy requirements, that Apple began integrating Google Cloud into its AI infrastructure and adopted Google’s custom Tensor Processing Units (TPUs).

In January this year, Apple announced an agreement with Google to incorporate the Gemini model into Apple products.

Private Cloud Usage Only 10% Due to Financial Strain and Executive Departures

Apple’s move to seek external help is closely related to the current state of its internal cloud infrastructure. Data shows that the private cloud computing system designed specifically for AI at Apple has an average utilization rate of only 10%, with some servers still stored in warehouses and not yet installed.

Approximately a dozen former Apple executives and engineers described that this situation is due to Apple’s finance department consistently suppressing large-scale investments in its own cloud infrastructure for years. Instead, Apple prefers to rent computing power from external providers like Google and Amazon Web Services (AWS) to maintain flexible control over infrastructure costs.

Additionally, Mike Abbott, who led the integration of cloud infrastructure, left in 2023. His team members soon moved to General Motors (GM), further weakening Apple’s internal cloud capabilities.

▼Click the image to enlarge

Limitations of Private Cloud Systems Hampering Apple’s AI Progress

Former employees also pointed out that Apple’s private cloud systems perform poorly within Apple’s own data centers. Software updates for private cloud servers take much longer than for other types of servers, and servers equipped with Apple’s self-developed chips are not designed for AI workloads. This results in obvious limitations when running large models like Google Gemini.

Apple’s progress in AI continues to lag behind expectations, and the delayed launch of a more conversational version of Siri has led to a lukewarm market response to its AI features.