Apple (AAPL.US) plans to launch AI search tools next year, partnering with Google to upgrade Siri and challenge OpenAI

According to Jinse Finance APP, Apple Inc. (AAPL.US) plans to launch its own AI-driven web search tool next year, intensifying competition with OpenAI and Perplexity AI Inc.

According to sources familiar with the matter, the company is developing a new system internally codenamed "World Knowledge Answers," which will be integrated into the Siri voice assistant. Apple has also discussed eventually applying this technology to the Safari web browser and Spotlight (the feature used to search from the iPhone home screen).

Sources said Apple aims to release this service, referred to by executives as the "answer engine," in the spring as part of a long-delayed comprehensive upgrade plan for Siri.

The concept is designed to make Siri and Apple's operating system a platform for users to query information across the entire web—operating similarly to ChatGPT, Google Search's AI Overview feature, and a batch of emerging applications. This technology will rely on large language models (LLM), which are the key supporting technology for generative AI.

The underlying technology for the next-generation Siri may partly come from Google, a subsidiary of Alphabet (GOOGL), which has long been a partner of Apple. According to sources, the two parties have formally reached an agreement this week, with Apple set to evaluate and test Google's AI models to provide technical support for the voice assistant.

It is revealed that Apple's new search experience will feature an interactive interface integrating text, photos, videos, and local points of interest, while also providing an AI-driven summarization system aimed at delivering faster, more accurate, and easier-to-read search results than the current Siri. Spokespersons for Apple, based in Cupertino, California, and Google, based in Mountain View, both declined to comment.

The current version of Siri can answer basic questions and provide factual information about celebrities, events, movies, and sports, but it struggles with complex queries and common-sense searches, often resorting to providing Google or ChatGPT search results. This voice assistant, which was groundbreaking when it debuted in 2011, has now become a weak point in Apple's AI field.

These latest developments come as a U.S. judge ruled this week that Apple may maintain its agreement to set Google as the default search engine on its devices—with only minor adjustments. This agreement brings Apple about $20 billion in revenue annually, and investors are relieved by its continuation. However, the shift toward AI search is still underway.

Earlier this year, Apple services chief Eddy Cue testified in court that the volume of Google search queries from Apple devices had declined. "This is the first time in 20 years," he said, "We are beginning to see traditional search engines face potentially strong competitors," referring to AI-based search solutions.

However, Monday's ruling to maintain the Apple-Google search agreement may mean the urgency for the company to develop its own service has somewhat diminished.

Comprehensive Siri Upgrade

As part of the long-promised Siri innovation plan, this digital assistant will be able to access personal data and screen content to better handle queries and will also allow more precise device operations via voice. But Apple now plans to achieve even more ambitious goals through updates. The Siri technology overhaul, codenamed "Linwood" and "LLM Siri," lays the foundation for AI search functionality.

Craig Federighi, Apple's head of software engineering and the executive in charge of Siri strategy, hinted at broader changes at a recent staff meeting: "The results of our end-to-end transformation of Siri have met expectations, which allows us not only to deliver the announced features but also to provide upgrades far beyond what was envisioned."

Multiple teams are involved in the search plan, including the Siri group led by Federighi, the AI division headed by John Giannandrea, and the services unit managed by Cue. Vision Pro headset creator Mike Rockwell is leading the effort under Federighi's guidance, while former Siri chief Robbie Walker is a key driver of the project under Giannandrea.

Apple plans to use the same underlying search system for the World Knowledge feature and the already announced (but delayed) device-precise search function. This tool will help users find specific images, files, and other types of information more quickly.

Although Apple mainly plans to embed the new search system into existing features, it has also considered developing a chatbot-like application for search. Media reports last month indicated that Apple is recruiting for its newly established "Answers, Knowledge, and Information" (AKI) team, which is involved in search development.

The new Siri and search changes are currently planned to be released with the software update codenamed "Luck E," corresponding to the iOS 26.4 system, expected as early as March next year. The initial version of iOS 26 will debut this month alongside the new iPhone flagship, with Apple planning to launch the iPhone 17 series next Tuesday.

Gemini and Anthropic

Apple is restructuring Siri around three core components: the planner, the web and device search system, and the summarizer. The planner parses voice text input and decides how to respond; the search system scans the web or user data; the summarizer integrates information to generate answers.

The major shift is that Apple is considering using at least some third-party AI models to power the new Siri through the "Glenwood Project." The current version of Siri runs entirely on Apple's own technology.

According to sources, Apple is currently inclined to use a customized version of Google's Gemini model for the summarizer, which will run on Apple's private cloud computing servers. The search engine giant has delivered the technology to Apple, and both parties are collaborating on fine-tuning tests.

Apple is also considering using the Google model for the planner function, but is also continuing to evaluate reliance on Anthropic PBC's Claude model or its own in-house models. The two parties have not ruled out the possibility of ultimately using Gemini to handle additional AI and search-related functions.

Currently, the iPhone maker plans to retain its self-developed "Apple Foundation Model" technology to handle user data searches, which helps protect user privacy since customer information will not be processed by third-party technology.

Google was not the initial choice for the Siri project. Anthropic was once close to reaching an agreement, and Apple's internal evaluation showed Claude's quality was superior to Gemini. However, Anthropic reportedly set a high price for the technology—an annual fee of over $1.5 billion—while Google was willing to offer more favorable financial terms. This prompted Apple to invite Google to develop the model powering Siri.

This is not the first time the two parties have negotiated an AI-related agreement. Last year, Apple approached Google about integrating the Gemini chatbot into Siri, but ultimately chose to cooperate with OpenAI. Both companies have publicly stated they are still working on the agreement, but the feature has yet to be rolled out to users.

A Brand-New Look

In addition to the Siri and AI search upgrades in the first half of next year, Apple plans to visually revamp the voice assistant and develop a health AI agent to support a paid health subscription service in 2026. Another Siri update will bring stronger conversational capabilities to future home devices.

All of this is part of Apple's revival plan to catch up with Silicon Valley competitors in the AI field. After the delay of the new Siri this spring, Apple adjusted its executive structure to initiate the transformation, but the process will take time. When the iPhone 17 is released next week, no major new AI features are expected to be launched.

Acquisition Strategy

During the development of the new Siri, Cue and head of mergers and acquisitions Adrian Perica weighed a series of potential acquisitions. Media reports exclusively that Apple discussed acquiring Perplexity and Mistral, and executives recently met with French AI startup Mistral in July.

This summer, Apple seriously evaluated Perplexity's technology, but is currently no longer actively considering a bid. Its own search product will compete with the startup's offering. Apple is still seeking deal opportunities, especially to supplement its talent pool.

The company is facing a wave of talent loss. The "Apple Foundation Model" team, composed of dozens of scholars, researchers, and engineers, has continued to lose members in recent weeks. In early July, the department's founder and head, Pang Ruoming, left to join Meta Platforms, with a salary exceeding $200 million. Since then, about ten team members have left, most following Pang to join the social media giant.

Last week, three more core AI researchers left: John Peebles and Nan Du joined OpenAI, while Meng Zhao went to Anthropic. More team members are actively interviewing for other job opportunities.