According to Wccftech, Apple has announced its biggest AI shakeup yet, with AI chief John Giannandrea departing the company. He’s being replaced by Microsoft AI researcher Amar Subramanya, who will report to software boss Craig Federighi. This follows earlier reports that Apple plans to use a gigantic, tailored version of Google’s Gemini model—with 1.2 trillion parameters—to power a revamped Siri next year, a deal reportedly worth around $1 billion annually to Google. Meanwhile, Apple is facing a major talent drain, with OpenAI alone hiring about 40 Apple engineers in the last month, including key designers from the iPhone team. This exodus includes rising star Abidur Chowdhury, the designer of the iPhone Air, who left for an unnamed AI startup.
AI Strategy or Survival Tactic?
Look, this move is wild. You don’t just casually swap out your AI czar for a rival’s exec unless things aren’t going to plan. John Giannandrea was a huge get from Google back in 2018, and his departure signals a pretty dramatic course correction. Now, bringing in someone from Microsoft‘s research org is interesting. But here’s the thing: the real story might not be about internal AI development at all.
Think about it. The reported $1 billion annual deal to license Google’s Gemini, on top of the $20 billion Google already pays for search default status, paints a picture. It suggests Apple’s own foundational model efforts might be behind, and they’re opting for the “partner and integrate” strategy instead of a pure in-house build. So, is Amar Subramanya being hired to build, or to manage a complex web of partnerships? The statement from Tim Cook about a “more personalized Siri” next year hints the clock is already ticking.
The Brain Drain Is Real
And that talent exodus? It’s alarming. Losing 40 engineers to OpenAI in a month isn’t just competitive hiring; it’s a raid. When OpenAI, which is now working with Jony Ive on a mysterious “iPhone Killer” device, can poach your core iPhone design and human interface talent, it’s a direct threat. These aren’t just AI researchers; these are the people who define the Apple user experience.
Matt Theobald (manufacturing design) and Cyrus Daniel Irani (human interface) are huge losses. Their expertise is exactly what a company like OpenAI would need to move from software to a tangible, Apple-like hardware product. Abidur Chowdhury leaving adds insult to injury. It creates a perception that the most exciting work in tech isn’t at the Infinite Loop anymore, but at these aggressive, well-funded AI startups. That’s a brand problem money can’t immediately fix.
What’s Next for Apple AI?
So where does this leave them? Basically, Apple’s AI future seems to be a three-legged stool: a new external hire running the show, a massive external model (Gemini) doing the heavy lifting, and a focus on integrating it all into their ecosystem for that “personalized Siri.” It’s pragmatic, maybe even smart, but it’s not the “we built it all ourselves” narrative Apple loves.
The pressure on Craig Federighi and the new VP, Amar Subramanya, is immense. They have to prove that Apple’s magic—its integration, privacy stance, and hardware-software harmony—can turn licensed AI tech into a superior experience. If they can’t, they risk becoming a fancy UI layer on top of other companies’ core technologies. And for a firm that built an empire on vertical integration, that would be a fundamental shift. The official announcement of Giannandrea’s retirement is on the Apple Newsroom, but the real story is in the chaotic scramble happening behind the scenes.
