I think they want it to work well with web search. That’s why Google is the obvious choice. Also their ai offering is low risk of getting eliminated where as open ai could fail at any time

It appears to be lack of competence given they lied about the initial features of Apple Intelligence.

First, they touted features that no one actually built and then fired their AI figurehead “leader” who had no coherent execution plan—also, there appears to have been territorial squabbling going on, about who would build what.

How on earth did Apple Senior Management allow this to unravel? Too much focus on Services, yet ignoring their absolute failures with Siri and the bullshit that was Apple Intelligence, when AI spending is in the trillions?

There is just too much money being burned in AI for Apple to keep researchers. Also models have no respect for original art which leads to a branding issue of being a platform for artists.

Apple is competent at timing when to step into a market and I would guess they are waiting for AI to evolve beyond being considered untrustworthy slop.