In a stunning move that signals deep turmoil within its artificial intelligence division, Apple has announced a major leadership shakeup. John Giannandrea, the company’s AI chief since 2018, is stepping down after Apple Intelligence faced embarrassing failures and Siri’s overhaul collapsed. His replacement? A seasoned executive who knows Apple’s biggest competitors intimately. This dramatic shift reveals just how far behind Apple has fallen in the AI race that’s defining the future of technology.
Join us in showcasing the cryptocurrency revolution, one newsletter at a time. Subscribe now to get daily news and market updates right to your inbox, along with our millions of other subscribers (that’s right, millions love us!) — what are you waiting for?
Why Did Apple Replace Its AI Chief?
The departure of John Giannandrea wasn’t a simple retirement or planned transition. According to internal reports and Bloomberg’s investigation, Giannandrea had already been sidelined months before Monday’s announcement. In March, CEO Tim Cook stripped Siri development from Giannandrea’s oversight entirely, handing it to Mike Rockwell, creator of the Vision Pro. Apple’s secretive robotics division was also removed from his control. The writing was on the wall: Apple’s AI strategy was failing, and leadership needed to change.
Meet Apple’s New AI Chief: Amar Subramanya
Apple’s choice for Giannandrea’s replacement is telling. Amar Subramanya brings 16 years of Google experience, most recently leading engineering for the Gemini Assistant, followed by executive experience at Microsoft. This hire represents a strategic pivot – bringing in someone who understands Apple’s competitors from the inside. Subramanya will report directly to Craig Federighi, Apple’s software chief, with a clear mandate: fix Apple’s AI problems and help the company catch up in a race it’s currently losing.
| Executive | Role | Background | Current Status |
|---|---|---|---|
| John Giannandrea | Former Apple AI Chief | Google (Machine Intelligence & Search) | Stepping down, advisor through spring |
| Amar Subramanya | New Apple AI Chief | Google (16 years), Microsoft | Taking over immediately |
The Apple Intelligence Disaster: What Went Wrong?
Apple Intelligence, launched in October 2024 as Apple’s answer to the ChatGPT moment, has been nothing short of a public relations nightmare. The problems started immediately and kept coming:
- False News Generation: The notification summary feature created embarrassing, untrue headlines, including falsely reporting a suspect’s suicide and declaring sports championships before they ended
- BBC Complaints: The British broadcaster complained twice after Apple Intelligence spread misinformation about high-profile cases
- Siri Overhaul Collapse: When Federighi tested the new Siri weeks before its planned April launch, he discovered many touted features simply didn’t work
- Legal Consequences: The indefinite delay triggered class-action lawsuits from iPhone 16 buyers promised an AI-powered assistant
Inside Apple’s AI Organizational Crisis
Bloomberg’s May investigation revealed deeper structural problems within Apple’s AI division:
- Weak communication between AI and marketing teams
- Budget misalignments and resource allocation issues
- Employee morale so low that some mocked Giannandrea’s group as “AI/MLess”
- An exodus of AI researchers to competitors including OpenAI, Google, and Meta
The Siri Overhaul That Never Happened
Perhaps the most telling failure was Siri’s promised transformation. Apple had positioned the Siri overhaul as its flagship AI achievement, but internal testing revealed fundamental flaws. The delay wasn’t just embarrassing – it was costly. iPhone 16 buyers who purchased devices with the promise of revolutionary AI capabilities are now suing. Even more humbling: Apple is reportedly leaning on Google’s Gemini to power the next version of Siri, a remarkable admission of defeat in a rivalry that spans mobile operating systems, app stores, and now artificial intelligence.
Apple’s AI Philosophy: Strength or Weakness?
Apple has taken a fundamentally different approach to AI than its competitors. While Google, Microsoft, and OpenAI pour billions into massive data centers, Apple focuses on processing AI tasks directly on users’ devices using Apple Silicon chips. This privacy-first approach avoids collecting user data, with more complex requests routed through Private Cloud Compute servers that promise temporary processing and immediate deletion.
But this philosophy comes with clear trade-offs:
- On-device models are smaller and less capable than cloud-based alternatives
- Apple’s reluctance to collect user data means researchers train models on licensed and synthetic data rather than real-world information
- The approach may have permanently left Apple behind in the AI arms race
What This Means for Apple’s Future
The leadership change represents more than just personnel shuffling. It signals that Apple recognizes the severity of its AI problems and is willing to make dramatic changes. Subramanya’s background suggests Apple may be reconsidering its go-it-alone approach, potentially opening doors to more partnerships like the rumored Gemini integration.