Apple is facing a split inside its top leadership team about how the company should move forward with artificial intelligence.
Reports say that two senior executives, Craig Federighi and Eddy Cue, have very different ideas on whether Apple should spend money on buying AI startups or continue to build everything by itself.
According to The Information, Apple has recently looked at AI companies like Perplexity, which makes an AI-powered answer engine, and Mistral, a Paris-based AI startup.
These two firms are being discussed as possible acquisition targets. Eddy Cue, Apple’s Senior Vice President of Services, believes Apple should make a big investment and buy advanced AI companies.
He thinks this is the best way to quickly bring in new technology and the right talent. Cue played a leading role in Apple’s Beats acquisition back in 2014, and he now wants a similar bold step for AI.
Craig Federighi, Apple’s Senior Vice President of Software Engineering, does not agree with this idea. He thinks Apple can create the needed AI technology inside its own walls without buying other companies. Federighi worries that buying other companies could create problems, especially when it comes to fitting outside teams into Apple’s way of working and its technology.
He believes that building internally is safer and more consistent with Apple’s long-term approach.
Apple is known for being very careful when it comes to acquisitions. With only a few big exceptions like Beats in 2014 and buying Intel’s modem business in 2019 the company usually avoids huge, billion-dollar deals. Most of the time, Apple buys small companies quietly to add specific technologies to its products. This cautious style has served Apple well for years, but it is now being tested because AI is moving very fast.
Other technology giants are taking a very different approach. Meta has been hiring aggressively and even using strategies like “reverse acquihires” to get the best AI talent. Google and Microsoft have put billions into AI, while Microsoft’s partnership with OpenAI has already given it a big head start. With competition moving at this pace, experts are questioning if Apple’s careful style will be enough to keep up.
At the same time, Apple is working on its own AI projects. The company plans to release a new version of Siri, redesigned with something called App Intents, next spring. This improved Siri is expected to be part of a wider rollout called Apple Intelligence, which will bring more AI-powered tools for Apple users. However, insiders say that progress has been slower than expected, which makes the debate between Cue and Federighi even more important.
This moment is critical for Apple. The iPhone 17 launch is coming on September 9, 2025, and AI features are expected to be one of the highlights. Investors and users are watching closely to see how far Apple can go with artificial intelligence.
If Apple decides to stay conservative and build everything internally, progress might remain slow. If it makes a bold move and acquires advanced startups, it could narrow the gap with its rivals much faster.