Apple is building a ChatGPT rival to fix broken AI features, take on OpenAI

After sitting out most of the AI party, Apple is now scrambling to catch up, and fast. The iPhone-maker is reportedly working on its own ChatGPT-style chatbot, internally codenamed “Answer Engine,” in a bid to finally inject some real smarts into Siri and its other services.

So, what exactly is Apple building?

According to Bloomberg’s Mark Gurman, Apple’s upcoming chatbot is designed to answer questions by pulling information from across the web. It could either launch as a standalone app or get baked into Siri, Safari, and other parts of the Apple ecosystem. Internally, a new team called “Answers, Knowledge, and Information” is leading the charge, and Apple is already hiring engineers with search engine and algorithm chops to push things forward.

This comes after a slow and somewhat awkward entry into the AI race. Apple Intelligence was introduced earlier this year but got mixed reactions. Most of its AI features, like message summaries, felt too basic to keep up with what ChatGPT, Gemini, or even Copilot have been offering for a while. To make things worse, the company delayed key updates like the much-hyped ChatGPT integration with Siri.

Losing talent while rivals sprint ahead

As Apple tries to build its own AI muscles, it’s also been bleeding talent to rivals. Meta, for instance, has poached at least four senior AI researchers, including Apple’s head of AI, Ruoming Pang. His switch reportedly came with a $200 million compensation package, yep, that’s not a typo.

These exits haven’t gone unnoticed. Investors have been urging Apple to look beyond in-house solutions. Some want the company to make bold moves like acquiring Perplexity AI, a rising AI search startup co-founded by Indian-origin computer scientist Arvind Srinivas. That kind of buyout could help fast-track Siri’s long-overdue reinvention.

Strong iPhone sales but AI still a worry

Even with its AI stumbles, Apple isn’t exactly hurting. The company just posted its best revenue growth since 2021, raking in $94 billion in the latest quarter. Thanks to strong iPhone sales and a booming services business, it even beat Wall Street expectations.

Still, analysts aren’t all cheering. Some are worried about Apple’s lag in AI and ongoing concerns like global tariffs. CEO Tim Cook, meanwhile, hinted in a recent investor call that Apple is “open to acquisitions” that could help fast-track its roadmap.

Bottom line? Apple’s late to the AI game, but it’s finally moving. Whether it can catch up, or surprise us all with something game-changing, remains to be seen.