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Apple Inc.’s (NASDAQ:<\/a>AAPL<\/a>) decision to outsource its artificial intelligence<\/a> (AI) foundation to Alphabet Inc.\u2018s (NASDAQ:<\/a>GOOG<\/a>) (NASDAQ:<\/a>GOOGL<\/a>) Google is not a strategic masterstroke but a sign of a company in \u201chuge, hairy trouble,\u201d according to the research team at Cathie Wood’s ARK Invest.<\/p>\n During the latest episode of ARK\u2019s \u201cThe Brainstorm,\u201d Chief Futurist Brett Winton offered a scathing critique of the newly announced partnership that will see Google’s Gemini models power Siri.<\/p>\n Winton characterized the iPhone maker as \u201cfloundering,\u201d arguing that the deal highlights Apple’s inability to compete in the AI arms race.<\/p>\n “I think Apple’s in huge, hairy trouble,” Winton said. He pointed to a stark reversal in the economic dynamic<\/a> between the two tech giants.<\/p>\n Don’t Miss:<\/p>\n While Google previously paid Apple an estimated $20 billion annually to be the default search engine on iOS, the new dynamic requires Apple to pay for intelligence.<\/p>\n \u201cApple\u2026 is having to turn around and repeatedly pay Google somewhere around a billion dollars a year,\u201d Winton noted. \u201cSo they\u2019re net losing $21 billion a year on people trying to find information through their system.\u201d<\/p>\n The critique extended beyond financials to Apple\u2019s product culture. Winton argued that the company has \u201clost its ability to curate\u201d and lacks the internal talent to build a frontier foundation model.<\/p>\n He dismissed the idea that simply paying Google would solve Apple\u2019s product issues<\/a>, citing the lackluster reception of current \u201cApple Intelligence\u201d features.<\/p>\n Trending: If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it<\/a>?<\/p>\n Winton noted that users, including his own family members, are disabling the features because they accidentally trigger unwanted actions.<\/p>\n