Apple has overhauled its AI strategy. It has stopped developing its own AI models and shifted toward becoming a platform operator distributing AI services from outside companies, Bloomberg News reported on March 29.

The report said Apple appears to have abandoned the in-house development route due to cost concerns. It was reported to have concluded that competing with OpenAI, Google and Anthropic in building foundation models would require unsustainable levels of capital spending. Apple, by contrast, believes it can handle operating a marketplace with its existing software engineering and content review capabilities.

Apple’s chosen model mirrors the structure of its existing App Store strategy. It creates a distribution channel, sets quality standards and collects platform fees. Apple reshaped the mobile software distribution market in 2008, creating an app economy worth $1.1 trillion and taking a 15 to 30 percent commission from it.

Beneficiaries of the strategic shift are AI companies such as OpenAI and Anthropic. They can reach more than 2 billion Apple device users without a separate distribution network. Smaller AI companies are also likely to use Apple’s platform as a route to acquire customers, Bloomberg News reported.

Google, by contrast, could be placed at a disadvantage. As Apple diversifies service revenue through AI marketplace fees, negotiations between Apple and Google over making Google the default search engine in Safari could tilt against Google, Bloomberg News reported.