NYT: Apple's AI Struggles Began with 2023 Chip Budget Dispute

Apple's current struggles with Apple Intelligence and Siri began in early 2023 when AI head John Giannandrea sought approval from CEO Tim Cook to purchase more AI chips for development, according to a new report from The New York Times.

apple intelligence black
Cook initially approved doubling the team's chip budget, but CFO Luca Maestri reportedly reduced the increase to less than half that amount, and instead encouraged the team to make existing chips more efficient.

The lack of adequate GPU resources meant Apple's AI team had to negotiate for computing power from providers like Google and Amazon.

At the time, Apple's data centers had about 50,000 GPUs that were more than five years old – far fewer than the hundreds of thousands of chips being purchased by competitors like Microsoft, Google, and Meta.

The NYT report goes on to cover the leadership conflicts within the company, describing a power struggle between Robby Walker, who oversaw Siri, and Sebastien Marineau-Mes, a senior executive with the software team. The two reportedly battled over who would spearhead Siri's new capabilities, with both ultimately receiving pieces of the project.

Apple Intelligence faced significant delays after internal testing revealed Siri was inaccurate on nearly a third of requests. Apple subsequently admitted that it would take longer than expected to roll out the more personalized ‌Siri‌ experience, and that these features will be rolled out "in the coming year."

However, according to the report, Apple still plans to release its enhanced Siri experience this fall. The functionality includes personal context, onscreen awareness, and improved app integration. Some Apple executives reportedly aren't concerned about the delay, and believe competitors haven't perfected AI either, giving Apple time to get it right.

Following the delay, software chief Craig Federighi reorganized executives, removing responsibility for the new Siri from Giannandrea and reassigning it to Mike Rockwell, who leads the Vision Pro division. The details of Apple's Siri team changes and the delayed Siri revamp were previously reported by Bloomberg and The Information.

For more details on Apple's internal issues, including political infighting, budget constraints, and talent drain, see The New York Times' full report.

Popular Stories

iOS 26

iOS 26.2 Coming Soon With These 8 New Features on Your iPhone

Thursday December 11, 2025 8:49 am PST by
Apple seeded the second iOS 26.2 Release Candidate to developers earlier this week, meaning the update will be released to the general public very soon. Apple confirmed iOS 26.2 would be released in December, but it did not provide a specific date. We expect the update to be released by early next week. iOS 26.2 includes a handful of new features and changes on the iPhone, such as a new...
AirPods Pro Firmware Feature

Apple Releases New Firmware for AirPods Pro 2 and AirPods Pro 3

Thursday December 11, 2025 11:28 am PST by
Apple today released new firmware designed for the AirPods Pro 3 and the prior-generation AirPods Pro 2. The AirPods Pro 3 firmware is 8B30, up from 8B25, while the AirPods Pro 2 firmware is 8B28, up from 8B21. There's no word on what's include in the updated firmware, but the AirPods Pro 2 and AirPods Pro 3 are getting expanded support for Live Translation in the European Union in iOS...
Google maps feaure

Google Maps Quietly Added This Long-Overdue Feature for Drivers

Wednesday December 10, 2025 2:52 am PST by
Google Maps on iOS quietly gained a new feature recently that automatically recognizes where you've parked your vehicle and saves the location for you. Announced on LinkedIn by Rio Akasaka, Google Maps' senior product manager, the new feature auto-detects your parked location even if you don't use the parking pin function, saves it for up to 48 hours, and then automatically removes it once...
iOS 26

iOS 26.4 and iOS 27 Features Revealed in New Leak

Friday December 12, 2025 10:56 am PST by
Macworld's Filipe Espósito today revealed a handful of features that Apple is allegedly planning for iOS 26.4, iOS 27, and even iOS 28. The report said the features are referenced within the code for a leaked internal build of iOS 26 that is not meant to be seen by the public. However, it appears that Espósito and/or his sources managed to gain access to it, providing us with a sneak peek...
iOS 26

Apple Releases iOS 26.2 With Alarms for Reminders, Lock Screen Changes, Enhanced Safety Alerts and More

Friday December 12, 2025 10:10 am PST by
Apple today released iOS 26.2, the second major update to the iOS 26 operating system that came out in September, iOS 26.2 comes a little over a month after iOS 26.1 launched. ‌iOS 26‌.2 is compatible with the ‌iPhone‌ 11 series and later, as well as the second-generation ‌iPhone‌ SE. The new software can be downloaded on eligible iPhones over-the-air by going to Settings >...
Foldable iPhone 2023 Feature 1

Apple to Make More Foldable iPhones Than Expected [Updated]

Tuesday December 9, 2025 9:59 am PST by
Apple has ordered 22 million OLED panels from Samsung Display for the first foldable iPhone, signaling a significantly larger production target than the display industry had previously anticipated, ET News reports. In the now-seemingly deleted report, ET News claimed that Samsung plans to mass-produce 11 million inward-folding OLED displays for Apple next year, as well as 11 million...
AirTag 2 Mock Feature

Apple AirTag 2: Four New Features Found in iOS 26 Code

Thursday December 11, 2025 10:31 am PST by
The AirTag 2 will include a handful of new features that will improve tracking capabilities, according to a new report from Macworld. The site says that it was able to access an internal build of iOS 26, which includes references to multiple unreleased products. Here's what's supposedly coming: An improved pairing process, though no details were provided. AirTag pairing is already...
iOS 26

15 New Things Your iPhone Can Do in iOS 26.2

Friday December 5, 2025 9:40 am PST by
Apple is about to release iOS 26.2, the second major point update for iPhones since iOS 26 was rolled out in September, and there are at least 15 notable changes and improvements worth checking out. We've rounded them up below. Apple is expected to roll out iOS 26.2 to compatible devices sometime between December 8 and December 16. When the update drops, you can check Apple's servers for the ...
macOS Tahoe 26 Thumb

Apple Releases macOS Tahoe 26.2 With Edge Light

Friday December 12, 2025 10:08 am PST by
Apple today released macOS Tahoe 26.2, the second major update to the macOS Tahoe operating system that came out in September. macOS Tahoe 26.2 comes five weeks after Apple released macOS Tahoe 26.1. Mac users can download the macOS Tahoe update by using the Software Update section of System Settings. macOS Tahoe 26.2 includes Edge Light, a feature that illuminates your face with soft...

Top Rated Comments

wanha Avatar
9 months ago
Sounds like Apple committed the cardinal sin of innovation:

Trying to innovate in a cost-effective way.

That's a contradiction, because innovation requires exploring unknown territory, which means trying approaches that may not work.

Without this exploration, a company limits itself to incremental improvements within known boundaries - ie not actual innovation.

Innovation is thus inefficient by definition, and it requires leadership to acknowledge this in order for innovation to receive the resources it needs.
Score: 34 Votes (Like | Disagree)
antnythr Avatar
9 months ago
Apple Employees: Can we have AI?

Apple: We have AI at home

The AI at home:

At the time, Apple's data centers had about 50,000 GPUs that were more than five years old — far fewer than the hundreds of thousands of chips being purchased by competitors like Microsoft, Google, and Meta.
Score: 28 Votes (Like | Disagree)
0049190 Avatar
9 months ago
Why is the world’s richest company penny pinching on development costs? They seem more interested in their share price than their products and customers.
Score: 21 Votes (Like | Disagree)
D-a-a-n Avatar
9 months ago
Seems like they're struggling with a lot of things lately. Vision Pro, AI, software quality,... Maybe too many politics at board level.
Score: 19 Votes (Like | Disagree)
Falco McGregor Avatar
9 months ago
So now we have John Giannandrea or people close to him leaking to the press that the Apple Intelligence issues aren’t his fault. Reports from Bloomberg, The Information and now The NY Times on this are basically spinning narratives from the different camps at Apple to pin the blame. And at the end of the day, it sounds like most of these features will be out by September anyway. Embarrassing for sure but not nearly as big a story as the macro-economic forces that are far more a threat to Apple in the next three years.
Score: 16 Votes (Like | Disagree)
Jarman74 Avatar
9 months ago

Cook initially approved doubling the team's chip budget, but CFO Luca Maestri reportedly reduced the increase to less than half that amount, and instead encouraged the team to make existing chips more efficient.
What’s most staggering here is that Siri’s abysmal performance compared to the competition went unnoticed or was brushed off, even in light of ChatGPT’s obvious superiority at the beginning of 2023—especially when GPT-4 was released.

I’m all for sensible investment and spending, but if you failed to notice that Siri was being outperformed by every other assistant year after year—and despite sitting on an unfathomable pile of cash, you remained hellbent on penny-pinching—the full responsibility for the Apple Intelligence debacle falls squarely on you. It leaves me wondering whether Maestri was shown the door when the mistakes could no longer be swept under the rug.
Score: 16 Votes (Like | Disagree)