How Apple Fell Behind in the Battle for AI Dominance

What you need to Know

• Apple faced a GPU shortage in 2024 due to heavy demand from Amazon and Microsoft.

• This shortage delayed the development of Apple Intelligence and its large language models (LLMs).

• iPhones have only recently started contributing to Apple’s AI data collection.

• Apple’s delayed entry into AI may focus on quality, privacy, and ecosystem integration.

• Apple is expected to reveal major AI updates at WWDC 2025 as it catches up.

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In the rapidly changing domain of artificial intelligence (AI), technology giants such as Amazon, Google, Microsoft, and Apple are competing to rule the future. While Microsoft and Amazon have, however, taken quick leaps in AI growth and integration, Apple has encountered many roadblocks. Recent reports indicate that Apple's ambitious plans for its AI ecosystem commonly known as "Apple Intelligence" have been substantially delayed because of a combination of supply chain issues, privacy commitments, and strategic decisions.

Apple Faced a GPU Crunch in 2024

Apple in 2024 ran low on high-power GPUs (Graphics Processing Units) the computer hardware backbone needed to train big language models (LLMs) and other artificial intelligence tools. Such chips, particularly from firms like NVIDIA, play a vital role in executing sophisticated machine learning algorithms and enormous datasets.

But the market was extremely competitive. Amazon and Microsoft had already purchased massive amounts of GPU resources, focusing their cloud computing and AI initiatives. As a deep Bloomberg report out on May 18, 2025, states, this bottleneck in GPUs drastically hindered Apple's work on its AI platform and its rollout in offerings such as Siri.

While its rivals went ahead with very powerful AI assistants and models built into their cloud platforms and hardware, Apple could not scale its models as quickly, placing it at a huge disadvantage.

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Strict Privacy Standards Further Complicate Apple’s AI Training

One of Apple's fundamental brand values is users' privacy. Apple, over the years, has made privacy-focused decisions that have won the confidence of millions of users. But in AI training, all these decisions come at a price.

Unlike Meta, Google, or Microsoft, who rely on real user interactions and large data sources to train their AI systems, Apple went the more limited route. The company does not use real user data for training and instead uses synthetic data computer-generated information provided by third-party vendors.

Although synthetic data does have its applications, it cannot exactly match the richness, subtlety, and range of actual human interactions. Consequently, Apple's AI models have lacked depth and precision relative to those offered by competitors.

Apple only recently began incorporating actual usage data from iPhones to supplement its training data sets. But this is coming too late in the game, particularly when competitors have already accumulated years of actual user data to hone their algorithms to perfection.

A Pattern That Has Worked Before

With the delay, however, Apple's strategy is not completely faulty. The technology giant has had a long history of waiting for new technologies to mature before incorporating them into its product lineup. Whether it was the iPod during the MP3 age, the iPhone during the smartphone craze, or even the Apple Watch, the company has usually waited and watched the market, learned from the competition, and then introduced shepherded, user-friendly, and market-ready innovations.

The same approach appears to be extended to Apple Intelligence. Rather than jumping into the race of AI merely for publicity, Apple is working to develop a strong, private, and seamless AI experience one that would fit its ecosystem and principles.

Apple's gradual rollout can also serve to steer clear of some of the initial mistakes that have been observed with generative AI, including biases, hallucinations, and privacy invasions. As much as the public might chastise the delay, Apple's attention to long-term quality and user experience might be a differentiator.

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What the Future Holds for Apple Intelligence

In the future, Apple will catch up step by step, particularly with supply chains settling down and GPU availability enhancing. With Apple Silicon adoption in Macs and iPhones playing a growing role in gathering real-world data to train AI, the foundation is being laid for an even more advanced, privacy-centered AI system.

WWDC 2025 could see big announcements on AI enhancements to macOS, iOS, and Siri. Whether or not Apple's AI initiatives will catch up with the size and smarts of the likes of ChatGPT, Microsoft Copilot, or Google Gemini remains to be seen.

Though Apple can be lagging in the AI race for the moment, it would be foolish to write off the company. The combination of guarded strategy, appreciation for privacy, and record of late-but-effective innovation still keeps Apple in the game. But in an area developing as quickly as AI, time is of the essence, and the world waits.