blogpost<\/a> it\u2019s seen an increase in search queries from Apple devices.<\/p>\n\n\n\nApple currently offers OpenAI\u2019s ChatGPT as an option in the Siri digital assistant and is expected to add Gemini, Google\u2019s AI search product, later this year. <\/p>\n\n\n\n
Cue said Apple also looked at Anthropic, Perplexity, China-based DeepSeek and Grok from Elon Musk\u2019s xAI for this purpose. <\/p>\n\n\n\n
He said the agreement with OpenAI allows it to add other AI providers to the company\u2019s operating system, including Apple\u2019s own.<\/p>\n\n\n\n
Before ChatGPT was chosen last year as part of Apple Intelligence in iOS 18, there was a \u201cbake-off\u201d with Google, Cue said. He said Google had provided a term sheet that \u201chad a lot of things Apple wouldn\u2019t agree to and didn\u2019t agree to with OpenAI.\u201d <\/p>\n\n\n\n
Technology is changing fast enough that people may not even use the same devices in a few years, Cue said. <\/p>\n\n\n\n
\u201cYou may not need an iPhone 10 years from now as crazy as it sounds,\u201d he said. <\/p>\n\n\n\n
\u201cThe only way you truly have true competition is when you have technology shifts. Technology shifts create these opportunities. AI is a new technology shift, and it\u2019s creating new opportunities for new entrants.\u201d<\/p>\n\n\n\n
Cue said that, in order to improve, the AI players would need to enhance their search indexes. <\/p>\n\n\n\n
But, even if that doesn\u2019t happen quickly, they have other features that are \u201cso much better that people will switch.\u201d<\/p>\n\n\n\n
\u201cThere\u2019s enough money now, enough large players, that I don\u2019t see how it doesn\u2019t happen,\u201d he said, referring to a switch from standard search to AI.<\/p>\n\n\n\n
Cue also said that large language models \u2014 the underlying technology for generative AI \u2014 will continue to improve, giving users more reason to change their habits.<\/p>\n\n\n\n
Still, he believes Google should remain the default in Safari, saying that he has lost sleep over the possibility of losing the revenue sharing from their agreement. He said Apple\u2019s pact with Google today for regular search still has the most favorable financial terms. <\/p>\n\n\n\n
Cue is in charge of offerings like iCloud, TV+ and Apple Music, but he\u2019s also known as the company\u2019s chief deal maker. <\/p>\n\n\n\n
Any losses from the search partnership being broken up would be reflected on the financial results for his division. <\/p>\n\n\n\n
The services group has been a major bright spot for the company in recent quarters as sales of hardware have slowed. <\/p>\n\n\n\n
The unit generated a record $26.6 billion (R485 billion) during the March period. <\/p>\n\n\n\n
Cue\u2019s group is likely to further lose revenue after a judge ordered Apple to allow developers in the US to pay for in-app items outside the App Store, costing Apple up to 30% of revenue on each transaction.<\/p>\n\n\n\n
Last year, Apple and Google expanded their deal to include Google Lens integration as part of the Visual Intelligence feature on the latest iPhones. <\/p>\n\n\n\n
That allows a user to take a picture and use Google AI to analyse it. <\/p>\n\n\n\n
Cue also said that its agreement with Microsoft\u2019s Bing \u2014 a non-default option in Safari \u2014 was recently amended to be a year-to-year arrangement.<\/p>\n\n\n\n
Apple\u2019s own AI technology has lagged behind those of peers. <\/p>\n\n\n\n
The company doesn\u2019t have a AI search engine and has been forced to delay major upgrades to Siri that would have used a customer\u2019s personal data to help fulfill queries. <\/p>\n\n\n\n
The company is holding its annual developer conference starting June 9, when it plans to introduce improvements to Apple Intelligence, its AI platform.<\/p>\n\n\n\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
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