Apple AI Chief Steps Down After Challenging Tenure - What’s Next for Tech’s AI Race?

Another tech giant's AI ambitions just hit a speed bump.

Apple's artificial intelligence chief is out—departing after a tenure marked by internal friction and mounting pressure to catch rivals. The move comes as Silicon Valley's AI arms race intensifies, with Apple playing catch-up while competitors sprint ahead.

The Pressure Cooker

Insiders describe a division straining under the weight of expectation. While Google, Microsoft, and OpenAI rolled out flashy AI products, Apple's efforts remained largely behind the curtain—polishing features for future iPhones while the public narrative shifted.

The team faced the classic innovator's dilemma: integrate AI seamlessly into existing ecosystems, or chase the bleeding-edge demos dominating headlines? That tension reportedly fueled internal debates about direction and pace.

The Ripple Effect

Leadership changes at this level rarely happen in a vacuum. They signal strategic recalibration—or acknowledge that current trajectories aren't delivering fast enough.

For Apple, the timing is particularly delicate. Investors are hungry for AI-driven growth stories, and the stock market has been ruthlessly rewarding companies that articulate clear AI roadmaps (and punishing those that don't). Wall Street's patience for 'wait until next year' narratives is wearing thin—especially when 'next year' requires explaining why you're still behind.

The Road Ahead

Who steps into the role will speak volumes. A promotion from within suggests continuity; an external hire signals a sharper pivot. Either way, Apple's AI strategy now carries a new footnote: 'under new management.'

The company's immense resources and integrated hardware-software ecosystem remain formidable advantages. But in AI, talent and momentum matter as much as capital—and today, Apple conceded some of both.

One cynical finance take? This is what happens when your R&D budget could fund a small country's GDP, but you still get outmaneuvered by startups and rivals in the decade's defining tech shift. The market rewards movement, not just money—and right now, Apple needs to show it's moving faster.

Giannandrea steps down following delays in Siri and AI projects

The shift comes amid mounting frustrations over missed milestones — most notably, the delayed relaunch of the company’s VIRTUAL assistant, Siri, and the underwhelming initial reception of Apple’s broader AI efforts. In March 2025, the tech firm removed Siri from its oversight and reassigned it to other executives; just weeks later, a secretive robotics division also slipped out of its purview.

The company’s change in AI leadership comes as experts this year have said Apple has fallen behind its tech peers in artificial intelligence. This technology field has been reinvigorated since OpenAI launched ChatGPT in 2022.

Apple Intelligence, which aimed to position the company alongside AI leaders such as OpenAI and Google, has not been well-received by users and critics. Earlier this year, one of its most critical aspects, a significantly improved Siri assistant, was delayed until 2026, showing major development struggles.

Apple seeks to recalibrate AI strategy as competition heats up

Subramanya will serve as Vice President of AI, reporting to Craig Federighi, Apple’s Senior Vice President of Software Engineering. Cook noted that Federighi already played a key role in the company’s AI efforts. Federighi is Apple’s top software executive.

“In addition to growing his leadership team and AI responsibilities with Amar’s joining, Craig has been instrumental in driving our AI efforts, including overseeing our work to bring a more personalized Siri to users next year,” Cook said in a statement.

Subramanya, who has spent 16 years at Alphabet Inc.’s Google and most recently served as Microsoft Corp.’s corporate vice president of AI, is expected to lead Apple’s core “foundation models,”. He will also be in charge of machine‑learning research and AI safety efforts, indicating a renewed push at the firm to recalibrate its AI strategy.

In a brief statement, Apple CEO Tim Cook thanked Giannandrea for “the role he played in building and advancing our AI work,” while expressing Optimism for the road ahead under Subramanya’s leadership. 

Subramanya will lead teams at the iPhone maker working on the company’s foundation models, research, and AI safety. Other teams initially under Giannandrea will be moved under Chief Operating Officer Sabih Khan and Services Chief Eddy Cue, Apple said.

Apple shares, which are up 16% in 2025 so far, have lagged behind many other big technology companies, as investors have perceived the tech firm as falling behind those investing billions in AI chips and frontier model chatbots.

In August, the company announced a “significant increase” in its spending on AI, and Cook has labeled it a “profound” technology. Apple has struck a deal with OpenAI, the leader in AI, to integrate ChatGPT into some of its products, such as Siri. 

But Apple is playing a different game than companies like Microsoft, Google, and Meta. It is spending much less on infrastructure for the technology. The company also prefers its AI to run on its devices, instead of communicating back to more powerful computers in the cloud. 

Giannandrea’s departure highlights the struggles in Apple’s AI plans. What was once expected to make the company a leader in AI now appears to be a project facing challenges that require new ideas and direction. 

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