Apple is reportedly breaking up its artificial intelligence (AI) division and relocating two key product operations. As per the report, the Cupertino-based tech giant is currently moving its secretive robotics group to the hardware engineering division, after Siri was moved to the software engineering organisation in March. The process of taking away key projects from the AI division reportedly began in 2021 when Apple shifted the self-driving car project from under the AI division to Kevin Lynch, VP of Technology at Apple, and the executive leading the development of watchOS.
Apple Plans to Bring Back Its Functional Organisation
In his latest Power On newsletter, Bloomberg’s Mark Gurman writes that Apple is trying to restructure its AI division after a period of six years. Before 2018, the tech giant’s organisational hierarchy was a functional system, instead of product-based business units. This means instead of having a separate iPhone division and Apple Watch division, the company had hardware engineering, software engineering, and services divisions that worked on different parts of the devices.
In order to focus on AI technology, the company hired John Giannandrea as Senior VP of Machine Learning and AI Strategy (ex-Google). Soon after, Apple reportedly began merging various AI operations under his leadership. This is said to include projects such as Siri, Apple Intelligence, now-discontinued self-driving cars, and the secretive robotics division. This was said to be a first for the tech giant, as it moved away from its functional hierarchy.
Gurman states that Apple is now counting losses six years after the creation of the division. The tech giant reportedly feels it has fallen behind competitors in AI, and multiple delays in the rollout of Apple Intelligence features — most significantly the upgrades to Siri — it is now considering the future of the AI division.
Giannandrea reportedly lost Siri in March, which was then handed to Mike Rockwell, who is leading the development of visionOS. Now, Gurman claims that the robotics group is also moving away from the AI division and will be taken over by the company’s hardware engineering department, which is led by John Ternus.
Apple’s robotics group is reportedly a big focus point for the company. Earlier this year, a report claimed that the tech giant is working on non-humanoid robots, and the first products in this category could enter production in 2028.
The Bloomberg report claims that removing projects from the AI division also highlights the company’s growing dissatisfaction with Giannandrea. Apple is said to be preparing for his eventual exit, and once he leaves, the position is unlikely to be replaced, according to Gurman. Instead, the tech giant will reportedly move back to its functional organisational hierarchy that was in place before 2018.
