Apple pivots to AI with Google Gemini integration and workforce cuts

Apple is undergoing a major strategic pivot toward artificial intelligence, marked by significant structural changes and legal settlements. The company has announced it will integrate Google Gemini to power its new Siri-based Apple Intelligence architecture, moving away from developing its own foundational AI models.

To facilitate this transition, Apple is cutting approximately 200 jobs, split equally between the Vision Pro and Siri/software development divisions. While the Vision Pro gaming and immersive video teams are being reduced following weak sales, the company remains committed to the product line and is shifting resources toward future smart glasses technology.

In legal developments, Apple has agreed to a $250 million settlement in a class-action lawsuit regarding delayed Siri AI features. US customers who purchased iPhone 15 Pro or iPhone 16 models between June 10, 2024, and March 29, 2025, may be eligible for payments of $25 to $95 per device.

Additionally, Apple is implementing strict regional hardware restrictions for its AI services. Devices purchased in China (identified by the CH/A model number) are blocked from accessing Apple Intelligence features, regardless of the user's current location or software settings.