Apple is reportedly disbanding its artificial intelligence (AI) division and transferring two significant product operations to other departments. According to recent sources, the technology company based in Cupertino is in the process of integrating its covert robotics team into its hardware engineering division. This transition follows the earlier relocation of Siri to the software engineering organization in March. The move away from the AI division began in 2021, when Apple reassigned its self-driving car initiative from AI to Kevin Lynch, the Vice President of Technology overseeing the development of watchOS.
Apple Aims to Reestablish Its Functional Organization
In his latest Power On newsletter for Bloomberg, Mark Gurman outlines that Apple is seeking to reorganize its AI division after functioning in this structure for six years. Prior to 2018, Apple utilized a functional organizational model instead of a focus on product-based units. This meant that rather than having discrete divisions for the iPhone and Apple Watch, the company operated under broader categories such as hardware engineering, software engineering, and services that collaboratively developed various aspects of its devices.
To enhance its focus on AI technology, Apple appointed John Giannandrea as Senior Vice President of Machine Learning and AI Strategy, having previously held a similar role at Google. Following this decision, the company began consolidating various AI initiatives under Giannandrea’s leadership, which included managing Siri, Apple Intelligence, the now-defunct self-driving vehicle projects, and the covert robotics team. This marked a significant shift as Apple moved away from its traditional functional hierarchy.
Now, Gurman reports that Apple is assessing the outcomes of this six-year venture, feeling a sense of lag behind competitors in the AI arena. The company has experienced multiple delays, particularly concerning updates to Siri, which has prompted a reevaluation of the future of its AI division.
In March, Giannandrea lost oversight of Siri, which was reassigned to Mike Rockwell, who leads the visionOS development team. Gurman further suggests that the robotics unit is also expected to transition away from the AI division and be integrated into the hardware engineering department led by John Ternus.
Apple’s robotics team appears to be a major focus, with earlier reports indicating that the company is developing non-humanoid robots, with the first units projected to start production by 2028.
The Bloomberg article suggests that the removal of these projects from the AI division reflects an increasing dissatisfaction with Giannandrea’s tenure. Sources indicate that Apple may be preparing for his departure, and it is unlikely that his position will be filled once he leaves. Instead, the company plans to revert to its previous functional organizational structure established before 2018.
