Apple's AI Struggles Raise Concerns About Its Future Innovation Capabilities
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Apple acquired Siri in 2010 to bring AI and voice assistants to iPhones, but has failed to capitalize on the early lead and now risks falling behind big tech competitors in the AI race.
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Apple is in talks to license Google's Gemini AI model rather than rely on its own AI efforts, signaling an inability to compete at the top level of AI.
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With tech valuations increasingly tied to AI capabilities, Apple trades at premium multiples compared to Google despite slower growth, a reversal of AI fortunes, and possible overvaluation.
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Abandoning or struggling with major innovation projects like self-driving cars and now AI points to a concerning trend of Apple having trouble capitalizing on huge potential growth markets.
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Upside risks come from the potential for the Apple Vision Pro headset to be a transformative product that leads the next computing platform, but pricing and competition remain concerns.