The case, which was filed in 2024 by investor Peter Landsheft in a federal court in California, followed announcements by Apple at its 2024 developer conference, where the company said a range of new AI tools would arrive with upcoming iPhones.

Those features did not appear when the devices launched later that year.

Shareholders argued the delay affected them, saying the company promoted features that were not ready. Apple later confirmed in 2025 that the upgraded Siri would not be available until 2026.

Under the proposed settlement, eligible iPhone users in the United States could receive between $25 and $95 per device, but the final amount will depend on how many claims are submitted.

The offer applies to devices that support Apple Intelligence, including the iPhone 16 range and the iPhone 15 Pro models, sold between June 10, 2024 and March 29, 2025.

Apple plans to open the claims process within 45 days of May 5, 2026. Customers will need to provide proof of purchase, along with their device serial number and Apple ID.

The company has not admitted wrongdoing. In a statement, it said, “Apple has reached a settlement to resolve claims related to the availability of two additional features. We resolved this matter to stay focused on doing what we do best, delivering the most innovative products and services to our users,”

Since introducing its AI drive, known as Apple Intelligence, in 2024, Apple says it has released several other tools. These include Live Translation, Writing Tools, Genmoji and a photo editing feature called Clean Up.

Attention now turns to Apple’s next developer event, Worldwide Developers Conference, where executives have confirmed the long-delayed Siri upgrade will be presented. The company is expected to outline how the assistant will handle more complex tasks and respond with better context.

Beyond software, there are also signs Apple may adjust its hardware plans. Reports say the base iPhone 18 could be pushed back, with more focus placed on higher-end models and new designs.

However, the settlement still needs court approval before payments can go ahead.

The iPhone maker said on Monday that Ternus will take over on September 1, while Cook will become executive chairman.

The leadership change comes as Apple strengthens its focus on artificial intelligence, responding to competition from companies including Nvidia, Meta and Google.

Ternus joined Apple in 2001 and currently serves as senior vice-president of hardware engineering. He has worked on several of the company’s biggest products, including the Mac, iPad and AirPods.

He is also seen as an important figure in improving Mac sales in recent years, helping the product regain momentum against personal computer competitors.

Although he has kept a lower public profile than some Apple executives, the company has recently given him a more visible role.

Last year, Ternus presented the iPhone Air, a major redesign of Apple’s flagship device and one of the biggest changes to the product line in years.

At 50, he takes over at the same age Cook did when he succeeded Apple co-founder Steve Jobs in 2011.

Cook leaves the chief executive role after overseeing one of the most successful periods in Apple’s history. Since taking charge in August 2011, he has helped increase the company’s market value by about $3.6 trillion.

He was widely credited with expanding Apple’s global supply chain, especially through manufacturing partnerships in China, while also growing the company’s services and hardware businesses.

Cook also became the first Fortune 500 chief executive to publicly come out as gay in 2014 and often spoke on issues including workplace diversity and environmental policy.

Apple said Cook will remain involved in dealing with policymakers as executive chairman.

Ternus now inherits a company under pressure to show stronger progress in artificial intelligence.

Although Apple introduced Siri in 2011, it has struggled to match the pace of newer AI-focused companies.

Tech giants such as OpenAI and Anthropic have attracted millions of users with new chatbot products, while Nvidia has become the world’s most valuable listed company on the back of demand for AI chips.

In January, Apple reached an agreement with Google to use Gemini technology to improve Siri.

Ternus will also face competition in new devices. Meta Platforms has found success with smart glasses, while Apple’s Vision Pro headset has faced questions over its high price.

Alongside appointing John Ternus as CEO, Apple said Johny Srouji has been named chief hardware officer. He will continue leading the company’s custom chip and sensor teams.

The hardware engineering group previously led by Ternus will now be overseen by Tom Merieb.

According to a report by Bloomberg, the upgrade will arrive with iOS 27, iPadOS 27 and macOS 27, expected later this year.

People familiar with the plans said the feature will allow Siri to process multi-step commands in a single query, instead of handling them one at a time.

Right now, Siri responds to one instruction per request. That has left it trailing competitors that can manage more complex tasks in a single interaction. With this change, a user could ask Siri to get directions and share them with a contact in one sentence.

Apple is also working on a comprehensive redesign of Siri. The company is said to be building a more advanced version of the assistant using technology linked to Alphabet Inc.’s Gemini model. Apple has not responded to requests for comment.

The upgrade is expected to feature at the Worldwide Developers Conference on June 8, 2026, where Apple usually previews its next software updates.

Beyond handling multiple requests, Apple is testing a new Siri app with both voice and text input. Users may also be able to revisit past conversations, a feature already common with tools like ChatGPT.

There are also plans for an “Extensions” system that would allow third-party services to plug directly into Siri.

At the same time, Apple is looking at opening Siri to other AI providers. Reports say users could choose between different assistants, including those from Anthropic, alongside existing integrations.

This changes the tech giant’s approach. Apple’s earlier Apple Intelligence rollout in 2024 did not gain strong traction, and the company has been under pressure to close the gap with competing systems.

Internally, the project to overhaul Siri into a full chatbot is said to carry the codename “Campos”. The plan is to embed it across the iPhone, iPad and Mac, replacing the current interface with something more interactive and capable.

The agreement, announced on Monday, hands Google a function inside Apple’s ecosystem at a moment when Apple has had issues trying to scale in advanced software development. 

Under the deal, Google Gemini models will power the upcoming version of Siri and extend into other features tied to Apple Intelligence, a clear transition away from Apple’s tradition of relying almost entirely on its own tools.

Gemini already underpins key features in Samsung’s Galaxy devices, but Apple’s reach is much larger. With more than two billion active devices worldwide, Apple offers Google access to a scale that few platforms can match.

“After careful evaluation, Apple determined Google’s AI technology provides the most capable foundation for Apple Foundation Models,” Google said, adding that Gemini will support future Apple Intelligence features as well.

While neither company disclosed financial terms, industry reports put the deal at roughly $1 billion per year. If accurate, it would rank among the largest licensing agreements of its kind and underline how urgent Apple’s position has become. 

Gemini 3, Google’s latest flagship model, reportedly runs on about 1.2 trillion parameters. Apple’s internal models are believed to be far smaller, a gap that helps explain why Apple looked outside after repeated delays.

Those delays have been expensive. Since mid-2024, Apple has pushed back major improvements to Siri several times. Executive reshuffles followed, and the first wave of Apple’s generative tools failed to impress users or developers. 

Apple had already opened the door to outside help late last year by integrating ChatGPT into its devices. That arrangement allowed Siri to hand off complex questions to the chatbot, but only if users opted in. 

The new setup changes the balance. Gemini will sit much closer to the core of Apple’s system, while ChatGPT remains a secondary option.

“Apple’s decision to use Google’s Gemini models for Siri shifts OpenAI into a more supporting role, with ChatGPT remaining positioned for complex, opt-in queries rather than the default intelligence layer,” said Parth Talsania, CEO of Equisights Research.

However, Tesla chief executive Elon Musk wrote on X: “This seems like an unreasonable concentration of power for Google, given that (they) also have Android and Chrome.” Musk runs his own firm, xAI, which is investing heavily to compete with the biggest players.

Beyond the technology itself, the deal strengthens a commercial relationship that has lasted for years. Google already pays Apple tens of billions of dollars annually to remain the default search engine on iPhones and other devices.

Adding Gemini tightens that bond and makes Google even more embedded in Apple’s daily operations.

Investors welcomed the news. Alphabet’s market value climbed above $4 trillion on Monday, placing it in a small club alongside Nvidia, Microsoft and Apple itself. The company’s shares rose 65% last year, driven by growing trust in its strategy and speedy progress across text, image and video systems.

Google also moved quickly to address issues around data use. “Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple’s industry-leading privacy standards,” the company said.

His departure comes at a challenging period for Apple Intelligence, the company’s flagship AI initiative, which has faced several issues since its October 2024 launch.

Giannandrea’s replacement is Amar Subramanya, a veteran of both Microsoft and Google, most recently leading engineering for Google’s Gemini Assistant. The hire shows Apple’s intent to get serious in AI, leveraging Subramanya’s insider knowledge of a long-standing competitor.

Apple Intelligence has struggled from the start. Early features, like its notification summary tool, produced incorrect headlines, drawing complaints from the BBC. 

Mistaken reports included a claim that Luigi Mangione, accused of killing UnitedHealthcare CEO Brian Thompson, had shot himself, a falsehood, and that darts player Luke Littler had won a championship before the final began. 

Siri’s promised overhaul has also faltered, delaying its launch indefinitely and leading to class-action lawsuits from iPhone 16 buyers who expected a new AI assistant.

A Bloomberg investigation in May revealed serious issues. When Craig Federighi, Apple’s software chief, tested the new Siri shortly before its planned launch, many touted features simply didn’t work. 

Leadership changes followed as Giannandrea was stripped of Siri oversight in March, which passed to Vision Pro creator Mike Rockwell, and Apple removed its robotics division from his control. 

Bloomberg described weak communication, budget mismatches, and staff mockingly calling his team “AI/MLess.” Some researchers left for OpenAI, Google, and Meta.

Apple is now reportedly leaning on Google’s Gemini to power the next Siri, a twist in the 15-year rivalry between the two tech giants across operating systems, app stores, browsers, and now AI.

Giannandrea arrived at Apple from Google, where he led Machine Intelligence and Search. At Apple, he oversaw AI strategy, machine learning infrastructure, and Siri development. 

Now, Subramanya will assume those responsibilities, reporting to Federighi, and focus on helping Apple catch up in the AI race.

Apple has long taken a different path, prioritising on-device AI processing with Apple Silicon chips for privacy reasons. Complex requests are handled via Private Cloud Compute, designed to temporarily process and then delete user data. 

This approach has some trade-offs: models are smaller and less capable than those in competitors’ data centres, and the lack of real-world user data may slow progress compared to rivals.

“We are thankful for the role John played in building and advancing our AI work, helping Apple continue to innovate and enrich the lives of our users,” said Tim Cook, Apple’s CEO. 

“AI has long been central to Apple’s strategy, and we are pleased to welcome Amar to Craig’s leadership team and to bring his extraordinary AI expertise to Apple. In addition to growing his leadership team and AI responsibilities with Amar’s joining, Craig has been instrumental in driving our AI efforts, including overseeing our work to bring a more personalized Siri to users next year.”

The agreement, according to Bloomberg, would be one of Apple’s biggest collaborations with an external technology partner in years.

For now, Apple plans to rely on Google’s large-scale model, which has 1.2 trillion parameters, to strengthen Siri’s processing power and decision-making. 

That’s nearly eight times more advanced than Apple’s current 150 billion-parameter cloud model. The company sees the deal as a temporary measure while it works to bring its own artificial intelligence system up to par.

Apple tested several models, including OpenAI’s ChatGPT and Anthropic’s Claude, before selecting Google’s Gemini earlier this year. Those close to the project said Apple concluded that Gemini offered the best blend of speed, reliability, and contextual understanding.

The revamped Siri, codenamed Linwood, is expected to launch next spring as part of iOS 26.4. The project, known internally as Glenwood, is being overseen by Mike Rockwell, the executive behind the Vision Pro headset, and software engineering chief Craig Federighi.

Under the terms being finalised, Google’s Gemini model will manage Siri’s “summariser” and “planner” functions, which help the assistant interpret user intent and coordinate complex actions. 

However, Apple’s own models will still handle several on-device tasks. To protect user data, Gemini will operate within Apple’s Private Cloud Compute servers rather than Google’s infrastructure.

Neither company has commented publicly on the partnership. Unlike the Safari search deal, Apple is expected to keep Google’s role behind the scenes, branding Siri’s improvements under its own ecosystem rather than sharing credit.

The collaboration is a rare moment of pragmatism from Apple, which has long avoided outsourcing key software capabilities. But as competitors like OpenAI, Microsoft, and Google grow quickly, Apple appears more willing to depend on outside systems, at least for now, to maintain competitiveness.

Despite leaning on Google, Apple has not abandoned its vision to build proprietary AI tools. The company’s in-house models team is reportedly developing a trillion-parameter cloud model, aiming to match Gemini’s quality by next year. Executives say they can phase out the Google technology in due course.

Globally, Apple is also preparing a version of the new Siri for the Chinese market, where Google services are banned. The Chinese variant is expected to run entirely on Apple’s own models with a compliance layer from Alibaba Group, tailored to meet local regulatory demands.

Shares of both companies briefly rose after reports of the talks surfaced, Apple gaining less than 1% to $271.70, and Alphabet rising as much as 3.2% to $286.42.

Pang led Apple’s Foundation Models team, responsible for training the AI systems powering recent on-device tools like Genmoji and smart notifications.

His departure, confirmed by insiders, follows growing internal challenges at Apple over its reliance on external models from OpenAI and Anthropic to deliver critical Siri upgrades. 

For a company that prides itself on tight vertical control, outsourcing key AI infrastructure to rivals has raised eyebrows internally and beyond.

Meta, meanwhile, is making no secret of its aggressive expansion plans. Pang now joins its elite AI division, Meta Superintelligence Labs (MSL), which has become a magnet for top talent. 

It’s headed by Alexandr Wang, the former CEO of Scale AI, a company Meta recently invested in at a $29 billion valuation. Bloomberg reports that Pang’s compensation at Meta runs into the millions annually.

Pang’s exit comes weeks after his deputy, Tom Gunter, also left Apple, and is part of a pattern of senior AI defections. Mark Zuckerberg has been personally overseeing this high-stakes recruitment wave, pulling in names like Daniel Gross of Safe Superintelligence and former GitHub CEO Nat Friedman. Researchers from OpenAI, Anthropic, and DeepMind have also reportedly crossed over to Meta.

“Apple’s recent AI enhancements have been minimal, and the more sought-after features, like the Siri revamp, are being pushed out to 2026,” said Dipanjan Chatterjee, Forrester VP and principal analyst. “Apple’s strong brand equity has absorbed much of this damage without customer defection, but this equity is being steadily eroded as Apple fails to make good on its AI promises.”

While Apple made a strong hardware showing at WWDC 2025, its AI reveal leaned heavily on partnerships, rather than showcasing any breakthrough from its internal teams. That silence from within is now being read as a red flag.

Zhifeng Chen has now taken over Pang’s team, but oversight is fragmented across software boss Craig Federighi, Siri and Vision Pro head Mike Rockwell, and a diminished role for John Giannandrea. 

Analysts say this reshuffling is unlikely to change Apple’s pace, particularly in a market where rivals are throwing around $10 million to $100 million offers just to attract top talent.

Sam Altman, CEO of OpenAI, in a recent podcast interview with his brother, said, “Meta had been targeting his employees with signing bonuses that went as high as $100 million.”

The device, which was initially slated for release in early 2025, is now on hold as Apple works to improve its voice assistant.

The company confirmed the setback, stating that the new Siri features, which were intended to power the smart home hub, require more time to perfect. “It’s going to take us longer than we thought to deliver on these features, and we anticipate rolling them out in the coming year,” Apple spokesperson Jacqueline Roy said.

Apple had unveiled plans to revamp Siri, integrating it with Apple Intelligence, its suite of AI-powered features. The goal was to make Siri more personalised, intuitive, and deeply integrated with user data and apps. 

However, multiple reports state that Apple’s AI team has encountered serious technical and organisational issues.

According to Bloomberg, the team working on Siri has been facing engineering challenges, as well as internal leadership problems, which have slowed the rollout of planned upgrades. 

Some Apple executives are reportedly dissatisfied with the progress, leading to reports that the company may need to overhaul its approach entirely.

This delay does not only affect Siri but has disrupted Apple’s general smart home strategy. The postponed hub was designed to function as a control centre for Apple’s HomeKit ecosystem, featuring a six-inch touchscreen, video calling support, and advanced voice-command capabilities. With Siri’s new features not ready, Apple has been forced to put the project on hold.

Internal Testing Underway, but No Confirmed Release Date

Even with the delay, Apple is not abandoning the project. The company has reportedly begun an internal testing programme, allowing select employees to use the smart home hub at home to gather feedback. This shows that while the public release may be far off, Apple is still actively refining the product.

Analysts believe Apple’s approach is a strategic move to avoid launching an underwhelming product. Unlike competitors such as Google and Amazon, which have quickly advanced their AI-driven voice assistants, Apple has prioritised privacy and user security over speed. 

While this approach aligns with the company’s philosophy, it has placed Apple behind in the race for AI dominance.

The Smart Home Hub: What to Expect

Internally codenamed “J490,” the smart home hub is expected to feature:

• A six-inch touchscreen for interactive controls and video calls.
• Seamless integration with HomeKit to manage smart home devices.
• Voice control powered by Siri, allowing users to operate devices hands-free.
• Temperature and proximity sensors, enhancing automation and user experience.

With the delay, Apple now aims for a second or third-quarter 2025 launch, aligning with the expected rollout of more advanced Siri functionality. 

Apple is working to address its AI development challenges and deliver a product that can compete in the sophisticated smart home market.

The company clarified that it has never sold Siri data, nor used it to create marketing profiles or targeted advertisements.

Last week, Apple agreed to pay $95 million to settle a lawsuit claiming that Siri had inadvertently recorded private conversations after being unintentionally activated.

Plaintiffs alleged that these recordings were disclosed to third parties, including advertisers. Although the settlement was reached, Apple did not admit to any wrongdoing, maintaining its stand that the allegations were unfounded.

In a statement issued on Wednesday, Apple reaffirmed its position, stating, “Apple has never used Siri data to build marketing profiles, never made it available for advertising, and never sold it to anyone for any purpose.”

The tech giant explained that Siri is designed with privacy at its core. Most Siri requests are processed directly on users’ devices to minimise data sharing. In cases where server input is required, Apple emphasised that only minimal data is transmitted, ensuring user anonymity through random identifiers rather than personal accounts.

Apple further clarified that audio recordings of Siri interactions are not retained unless users explicitly opt-in to assist in improving the service. Even then, the recordings are used exclusively for that purpose and can be revoked at any time.

The settlement, which could see eligible Apple customers receiving up to $20 per Siri-enabled device, has led to many interpreting the resolution as an admission of guilt, a notion Apple strongly refutes.

The company stressed that privacy remains a foundational principle in all its products and services, including Siri.

In its efforts to enhance privacy, Apple highlighted advancements in on-device processing and private cloud computing. These technologies enable Siri to deliver personalised results without compromising users’ security or storing sensitive data on Apple servers.

Apple’s philosophy, which it describes as a “fundamental human right” is its stronghold. While similar challenges face other tech companies, including Google, Apple is working to ensure it protects consumer data.

The settlement, filed in a federal court in Oakland, California, is still subject to approval by U.S. District Judge Jeffrey White.

The lawsuit, which dates back several years, accused Apple of allowing Siri to unintentionally activate and record private conversations when users did not deliberately trigger the assistant. 

Plaintiffs claimed these recordings were sometimes shared with third parties, including advertisers. Apple has denied any wrongdoing but has chosen to settle the case.

Users alleged that Siri’s “Hey, Siri” feature, introduced in September 2014, often activated accidentally, capturing personal conversations. In some instances, this reportedly led to targeted advertisements. 

For example, two plaintiffs said discussions about products like Air Jordan sneakers and Olive Garden restaurants prompted ads for those items, raising issues about data privacy.

The class action lawsuit covers a period from 2014 to the end of 2024 and involves tens of millions of potential claimants. Eligible Apple device owners could receive up to $20 per Siri-enabled device, including iPhones and Apple Watches. Claims are capped at five devices per individual.

As part of the agreement, Apple will delete any unauthorised Siri recordings made before October 2019 within six months of the settlement’s effective date. The company will also update its user guidance on Siri’s data collection practices to provide clearer information.

The plaintiffs’ legal team is expected to request up to $28.5 million in legal fees and an additional $1.1 million for expenses from the settlement fund.

Beyond Apple, Google is also facing a similar lawsuit involving its voice assistant, which is being handled in the same federal district.

Apple has not issued any public statements about the settlement. The lawsuit, Lopez et al v. Apple Inc., reveals the growing demand for transparency and accountability in how tech companies handle consumer data.