Uncertainty around Apple's AI policy, including reliance on third-party models, has contributed to low morale among AI engineers, complicating talent retention.

Meta’s AI efforts, led by Alexandr Wang’s Superintelligence Labs, have received over $14.3 billion in investment, reflecting fierce industry competition despite delays in releasing advanced models like Llama 4.

The leadership change and talent loss at Apple could impact investor confidence and market expectations, especially with a major Siri update on the horizon.

Apple’s development of the M5 chip aims to make devices more intelligent locally, reducing latency and improving privacy, which is crucial for strengthening its position in AI hardware.

The upcoming Siri upgrade, part of Apple’s broader AI strategy, will extend AI search and answer features across platforms like Safari and Spotlight, aiming for a device-wide AI experience.

Yang, a key figure in Apple's AI strategy and head of the AKI team working to make Siri more ChatGPT-like, has left Apple after six years to join Meta, intensifying the global competition for top AI talent.

Apple is developing its own AI models alongside partners like Google’s Gemini AI, aiming for privacy-focused, on-device AI solutions, but leadership changes like Yang's departure raise concerns about project progress.

Talent migration and leadership turnover could delay the delivery of advanced, privacy-centric AI assistants, impacting user experience and trust within Apple's ecosystem.

Apple continues to focus on building a secure, private AI ecosystem, expecting to release an upgraded, LLM-backed Siri in early 2026 alongside a new Apple Home product, despite industry upheaval.

There have been discussions about acquiring AI startups like Perplexity AI to enhance Apple's capabilities, but no acquisitions have been finalized so far.

The AKI team was preparing a major Siri update scheduled for March, which would enable more complex requests and web integration, but development setbacks have postponed this upgrade to next year.

Despite launching new products such as the MacBook Pro, iPad Pro, and Vision Pro, Apple’s stock remains marginally down amid macroeconomic and geopolitical challenges, with investor sentiment cautious.