Apple Develops AI Search Engine to Compete with ChatGPT

Recent reports indicate that Apple is venturing into the realm of artificial intelligence by forming a dedicated team focused on developing a new AI-powered search engine. This initiative aims to create an innovative 'answer machine' that bears similarities to existing platforms like Perplexity.

The newly formed team, known as 'Answers, Knowledge, and Information' (AKI), is reportedly under the leadership of Robby Walker. Previously, Walker was part of the Siri development team, which has undergone significant changes recently. The team is tasked with exploring the implementation of a search experience akin to that of ChatGPT, which could potentially lead to the creation of Apple's first comprehensive chatbot.

Despite Apple's historical reluctance to embrace chatbot technology, there are indications that the company may consider developing a system of this nature for its support applications. This move could serve as a strategic response to anticipated declines in revenue from its lucrative search deal with Google. Eddy Cue, Apple's services chief, has hinted at a noticeable drop in search queries, attributing it to users increasingly favoring AI-generated search results, a claim that Google has disputed.

Moreover, Apple has reportedly been in discussions with Perplexity regarding a partnership. CEO Tim Cook has expressed openness to significant acquisitions in the AI space, suggesting that the company is keen on fortifying its position in the increasingly competitive market.

Currently, Apple's AI initiatives lack a dedicated search function, focusing instead on features like AI-generated summaries and image creation. These offerings have been criticized as inferior to those of competitors such as ChatGPT and Claude. Although users can access OpenAI's ChatGPT through Apple products, the company is now moving towards developing its own search capabilities, potentially in the form of a streamlined chatbot.

The AKI team is reportedly developing a proprietary web crawler to gather data from the internet, which will then be made accessible to users through a chatbot interface. There are also discussions about launching a dedicated application, along with the necessary backend infrastructure, to support services such as Siri, Spotlight, and Safari.

In addition to these developments, Apple is actively recruiting talent to work on 'innovative information experiences' across its flagship products, including Siri, Spotlight, and the news application. However, the Apple Intelligence team faces challenges in retaining skilled employees, with reports indicating that several members have left for positions at Meta, where competitive salaries for AI experts are being offered.