Some Apple AI servers are reportedly sitting unused on warehouse shelves, due to low Apple Intelligence usage

Source: 9to5Mac

Background

Earlier this year, Bloomberg reported that Apple was looking to host the much‑delayed new Siri models on Google servers, rather than Apple’s Private Cloud Compute. The Information is reporting a similar story, saying that Google has been tasked with running Siri servers inside its data centers while adhering to Apple’s privacy standards.

Private Cloud Compute Issues

• Underutilization: Apple is using only about 10 % of Private Cloud Compute’s capacity on average, leaving some already‑manufactured Apple servers sitting dormant on warehouse shelves.
• Fragmented infrastructure: Different teams run independent technologies instead of a single centralized pool, causing idle resources in one part of the stack while another part lacks capacity.
• Financial friction: The finance team is frustrated by the costs of duplicate infrastructure but is unwilling to invest billions in a full overhaul. Past attempts to unify the stack have stalled over the past decade.
• Hardware limitations: The system relies on modified M2 Ultra processors that are not powerful enough for the latest frontier models like Gemini, which the new Siri will be based on. Updating the software is also trickier and slower.

Because the initial crop of Apple Intelligence features hasn’t been used as much as Apple expected, the Private Cloud Compute buildout is viewed negatively. Apple anticipates much higher demand for the new Siri chatbot features once they launch, but the current stack does not seem up to the task.

Talks with Google

Apple is in advanced talks with Google to run the new Siri inside Google’s data centers. Google already has extensive experience with mass LLM server buildouts thanks to Gemini. Apple already relies on Google’s cloud for some iCloud features, such as cloud storage.

Future Outlook

The rapidly changing AI landscape may force Apple’s leadership to reconsider its cloud‑infrastructure strategy. While heavier in‑house investment could be on the horizon, implementing those changes is expected to be a longer‑term trajectory.

You can read the full story over at The Information.