Siri AI could come with a paywall for power users
In his final earnings call, Tim Cook teased that Apple's long-awaited Siri AI upgrade might introduce paywalled limits for advanced compute.
Stock photo for illustration only, not from the actual event
- Tim Cook hinted that the upgraded Siri AI may introduce usage limits and paywalls.
- Users could potentially purchase extra compute for Siri AI through existing iCloud+ subscriptions.
- The overhauled Siri AI is available in iOS 27 beta and slated for a wider fall rollout.
- John Ternus steps in as CEO amid AI delays and rising hardware supply costs.
During his final earnings call as Apple CEO, Tim Cook revealed that the company's long-awaited Siri AI upgrade could incorporate paywalled limits for power users. While Cook acknowledged that these plans are not finalized, he envisions a model where users can purchase additional compute power for Siri AI through their existing iCloud+ cloud storage subscriptions.
This strategy mirrors other AI providers such as Anthropic and OpenAI, both of which furnish limited free consumer tiers alongside upgrade options to support heavier workloads. The revamped Siri AI is currently accessible within the iOS 27 beta and is scheduled for a broader release this autumn.
As longtime Senior Vice President of Hardware Engineering John Ternus assumes the role of CEO, he takes the helm at a critical juncture. Apple has lagged behind competitors in developing an advanced AI assistant, even resorting to licensing a custom Gemini model from Google to bolster Siri. The overhaul faced such severe delays that Apple was forced to pay $250 million to settle a class-action lawsuit regarding how it marketed the iPhone 16's AI capabilities.
Stock photo for illustration only, not from the actual event
Apple's contemplation of a paywall for Siri AI highlights the staggering computational costs required to operate modern large language models at scale. By integrating these advanced capabilities into the established iCloud+ ecosystem, Apple can offset infrastructure expenses while encouraging deeper ecosystem lock-in, all against the backdrop of industry-wide hardware pressures.
Furthermore, Apple and fellow hardware manufacturers face formidable hurdles in securing necessary supply chain components. Driven by an industry-wide AI-related RAM shortage, manufacturing costs have escalated, prompting companies like Meta, Samsung, Microsoft, and Sony to increase device prices. Apple raised prices for Macs and iPads last month, though it has yet to alter pricing for its current iPhone lineup.
Source: TechCrunch
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