Apple released iOS 27 on Monday, introducing a redesigned Siri that can hold conversations, draft emails, search photos and messages, and handle complex queries. The update brings Siri closer to chatbots such as ChatGPT and Claude, but it arrives as the broader AI market shifts toward autonomous AI agents that can complete real-world tasks.
New CEO John Ternus used his first product event appearance to call the iPhone an 'intelligent personal hub' and emphasize Apple's privacy-first approach. AAPL shares edged up 0.63% after the iOS 27 release. However, former Apple AI employees told The Wall Street Journal that Apple's privacy stance may slow product development and limit the AI experiences it can deliver.
Competition is accelerating. Instinct, built by an 11-person startup and already valued at $2.5 billion, operates in the cloud and can book flights, cancel appointments, register users for events, and manage calendars through iMessage or WhatsApp. Meta's Muse, launched last week, reached nearly 600,000 downloads in its first five days, putting it close to ChatGPT's early pace and directly competing with Apple's ecosystem.
Separately, The Information reported that Apple is developing an AI-focused enterprise server using two or four planned M8 Ultra chips and is discussing Nvidia's NVLink Fusion networking technology to connect them. The project would mark Apple's first dedicated server hardware since the Xserve line was discontinued in 2011. The server is aimed at AI developers, businesses, and governments, with a potential launch around 2029, though it could still be canceled.
The potential Apple-Nvidia collaboration would be notable given the companies' historically strained relationship. Apple's Mac sales rose 29% year over year to $10.3 billion in its latest quarterly results, and AI labs have reportedly been buying tens of thousands of Mac mini and Mac Studio units, signaling demand for Apple-based AI compute.
