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Apple Opens Apple Intelligence to Developers, Keeps AI Rollout Cautious at WWDC

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At its annual Worldwide Developers Conference (WWDC), Apple unveiled a series of incremental artificial intelligence updates, emphasizing practical features while keeping broader ambitions restrained compared to its tech rivals. The company announced that developers will now gain access to Apple Intelligence’s foundational on-device AI model, though cloud-based advanced capabilities remain out of reach.

Apple’s software chief Craig Federighi confirmed that third-party developers can integrate Apple’s on-device large language model (LLM), which operates at around 3 billion parameters. While this allows for enhanced privacy and offline functionality, it also limits the model’s capacity for more complex AI tasks that cloud-based systems can handle. Apple plans to supplement these with integrations from partners like OpenAI, allowing developers to use both Apple’s and OpenAI’s code completion tools directly within Apple’s developer platform, Xcode.

The updates reflect a shift from the sweeping promises made a year ago. Last year, Apple hinted at being a visionary in AI with talk of “AI agents.” This year, the company focused on concrete applications such as live translation during phone calls, call screening, and visual intelligence that helps users find products similar to those viewed online.

Federighi also announced a major design refresh across Apple’s operating systems, introducing a “Liquid Glass” aesthetic with semi-transparent icons and menus inspired by visionOS. Future OS versions will adopt year-based naming, replacing sequential version numbers.

While the AI additions may appear modest, Apple’s back-end infrastructure improvements suggest a longer-term strategy. The company prioritizes privacy-focused, on-device AI processing while allowing users to opt in when data is shared with third parties like OpenAI.

Despite these moves, analysts expressed mixed views. Some highlighted Apple’s cautious but practical approach, while others warned that Apple risks falling behind as competitors like OpenAI and Microsoft rapidly advance in AI development. Apple’s shares dipped 1.2% following the announcements.

In the broader context, OpenAI reported reaching a $10 billion annualized revenue run rate, underscoring the fast-paced evolution of the AI sector that Apple is cautiously navigating.

Apple Developing Custom Chips for Smart Glasses, AI Servers, and Next-Gen Macs

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Apple is advancing its hardware ambitions with the development of specialized chips designed to power future products, including its first smart glasses, AI servers, and next-generation MacBooks, Bloomberg News reported on Thursday, citing sources familiar with the matter.

The tech giant’s reported progress on a low-power chip for smart glasses signals its intent to directly compete with Meta’s popular Ray-Ban smart glasses, a category that’s becoming increasingly central in the race toward consumer wearables integrated with AI.

The glasses-specific chip is said to be based on Apple Watch silicon, emphasizing power efficiency and compact form factors. It has been tailored to support multiple cameras — a key feature for augmented reality (AR) and immersive use cases — and could enter mass production as early as late 2026 or 2027, with TSMC (Taiwan Semiconductor Manufacturing Company) slated as the manufacturing partner.

Beyond Smart Glasses:
Apple is also reportedly working on AI-optimized server chips to support the Apple Intelligence platform — the company’s suite of on-device AI features introduced for iPhones. These capabilities include notification summaries, email rewriting, and integration with OpenAI’s ChatGPT.

The server chips would provide the infrastructure needed to process more complex AI workloads, marking a notable shift for Apple as it begins to build its own AI compute backbone, rather than relying entirely on third-party providers.

MacBook Chip Roadmap Expands:
In addition, Apple is said to be developing new Mac chips, expected to be named the M6 and M7, extending its in-house silicon strategy. Apple’s custom chips have already proven transformative in differentiating its Mac lineup, offering significant performance gains over Intel-based predecessors.

Earlier this year, Apple also unveiled its first custom modem chip for iPhones, reinforcing its long-term commitment to vertical integration — from semiconductors to software.

While Apple has not publicly commented on the report, its steady push into AR, AI, and custom hardware signals the company is not merely following trends — but aiming to shape them.