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Cue vs. Federighi: Executives differ on if Apple should buy their way out of AI crisis

An internal clash between Eddy Cue and Craig Federighi about Apple Intelligence captures the company’s dilemma over whether to spend big or stick to its culture of caution.

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Does Apple Intelligence need outside help?

Apple is weighing acquisitions of Mistral and Perplexity as pressure mounts on its $20 billion Google search deal. Both startups offer Apple a possible lifeline as rivals pour billions into artificial intelligence.

Services chief Eddy Cue has argued that Apple must act quickly by buying Perplexity or Mistral. Federighi has resisted, convinced Apple’s engineers can build what’s needed internally.

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