Apple’s Big AI, Siri and Software Launch

**SPEAKER_2** (0:02)
Bloomberg Audio Studios, Podcasts, Radio, News. Bloomberg Tech is live from coast to coast, with Caroline Hyde in New York, and Ed Ludlow in San Francisco.

**Caroline Hyde** (0:21)
This is Bloomberg Tech. Coming up, all eyes on Apple's Developer Conferences. The iPhone maker is set to unveil a revamped Siri.
We'll be live from Cupertino. Plus, Nvidia and SK Hynix, they partner up on next generation AI memory chips with a multi-year deal.
And SpaceX gets ready to go public. We'll discuss what to expect from this week's record-breaking IPO. But at the moment, we turn our attention to what the markets are up to, and look a reprieve from the sell-off we saw on Friday. Now, we're having the best day in about a month for the NASDAQ 100, but remember Friday, we had the worst day in a year for this benchmark, and technology just saw a real sell-off anxiety that maybe would run too far, too fast, particularly in the world of hardware and chips. Well, today, we bounced back on the Sox. We're up 6.4 percent, but that's just clawing back some of the losses we saw on Friday after this benchmark had its worst day since 2020 So maybe we get a little bit more positive momentum, particularly as Nvidia has been talking about this buying opportunity, but also we get intricate news.
Look at Intel. This is a report coming from the information that maybe Google and others are turning to different makers, manufacturers of their chips, not just TSMC. Could we get a big healthy order coming through from Google for TPUs from Intel? We charge up 12% on that particular reporting from the information. But look at what's happening in terms of Apple. Look all eyes on what we're going to get in terms of Siri, what it's going to signal to the developers. We're currently up stealthily, maybe 15, 16 percent. Yeah, to date, it's the second best magnificent seven performance throughout all of those stocks on the year, because it even manages to do well when we've got anxiety around AI. So let's talk about what we therefore could see in terms of a refueling on this stock when they start to infuse AI a little bit better. Bloomberg, Apple, and of course, Consumer Tech Managing Editor Mark Gurman is alongside our own Ed Ludlow. Now, Ed's over in Cupertino. We're luckily to going to LA for our man of the moment when it comes to all Apple reporting as well. Mark Gurman, we start with you. Look, you've been reporting intricately on what we're going to be getting in terms of Siri. Is it going to live up to the hype?

**Mark Gurman** (2:26)
I think if you look at the features from AI standpoint on Apple devices right now, you basically have two subsets of features. You have Apple Intelligence, which are the on-device models, the Cloud models, things like writing tools, things like more advanced notifications, and then you have Siri. I would say both of those buckets are subpar compared to the competition. After today, you're going from subpar and you're going to be upgrading to pretty adequate, right? And so I think this new Siri will be extremely effective and enjoyable and useful for mass consumers. And I think that will put a little bit of pressure and threat on the chat GPTs, the Geminis, the Anthropics of the world. But in terms of game changing innovation, whiz bang new AI features, you're not going to see that. You're going to see a breakthrough new Siri interface, a Siri app, Siri evolving into a chatbot.
Siri working really effectively for the first time in 15 years, using those underlying models from Gemini. So I think overall, Apple has a very positive story to tell on Siri. And then on the Apple Intelligence front, the non-Siri AI features, there's a lot of good stuff, things for photo editing.
You're also going to see some improvements across iOS, a new customizable camera app. So I think a lot of nice refinements. And then the last thing I'll say, a lot of people have been asking for major performance and quality improvements. Stop throwing a thousand new features at us every year. Take a step back and make sure everything you've done over the last 10 years works well. And so they're doing that this year as well.

**Ed Ludlow** (4:06)
The headline mark is going to be the standalone app, right? Where Siri goes from a place where you have a feature, a single voice command gives a single result to a multi-step task within an app that will follow you from iOS to Mac OS, etc. Give us the specifics that you've been reporting on how this revamped Siri will work in practice.