0:08
I was just thinking about all this
AI race stuff and how
0:10
everything's gone from 0 to 100.
And then Apple,
0:13
they've just kind of been scrambling
the past two years trying to build
0:17
Apple intelligence and haven't
really done very well yet.
0:20
I just feel like...
it's so obvious
0:26
No, they.
They really won...
0:28
Wait, sorry, no.
Are you...
0:29
Are you trying to say that Apple,
0:31
the one that announced a new Siri and
then didn't deliver on it for two years
0:35
until they had to start over and build it
from the ground up with help from Google,
0:39
that Apple
Won the AI race?
0:41
See, I...
I think your definition of...
0:44
the AI race is a little bit too narrow.
0:47
Like, obviously,
being OpenAI and having ChatGPT...
0:53
making the hardware that
everyone runs AI on...
0:56
Is a different thing.
0:58
I don't think you can ignore
how hard Apple has lagged here.
1:02
I remember when ChatGPT first
came out and everybody saw
1:05
this as like the obvious...
1:08
So if you're a tech company,
you gotta move fast. So they did.
1:11
Google starts going crazy,
Meta turns the burners on,
1:15
Bing was insane for a couple of weeks.
1:17
I remember all this action and
then Apple just. Just nothing.
1:21
Just nothing from them.
1:22
They literally refuse to say
AI in their events for months.
1:26
I know, but think about it.
It's Apple, right?
1:28
Their thing has never been being
on the bleeding edge of tech.
1:31
They always sit back,
1:32
let the early adopters figure out what
the pros and cons and the bugs are,
1:36
and then they'll step in
late with their own version,
1:39
taking it to the next
level for their ecosystem.
1:43
That's what Apple intelligence is:
Apple waiting for the tech to
1:45
get good enough for the first...
1:47
hundred million users of
ChatGPT to work the bugs out.
1:53
obviously it's past the
early adopter phase,
1:56
not every technology has to be
adopted like some kind of race.
2:00
obviously tech companies are trained
to see emerging stuff as a threat,
2:04
but this AI stuff was never a
threat to Apple's core business...
2:08
Like, they're still a hardware company.
2:10
Like, you said it yourself.
2:11
I've watched your videos.
2:12
They are the iPhone company
and they sell the iPhone.
2:16
but you would expect
still the company with...
2:18
trillions of dollars to spend...
2:20
would still see ChatGPT spin up
2:22
and then Gemini and Claude and
Meta and all this other stuff,
2:25
and would think, okay,
number one, this is here to stay,
2:29
we should build a version of our own
that's cohesive with our ecosystem.
2:33
But Apple intelligence has
been kind of a joke so far...
2:36
Yeah, okay, hot take...
2:37
I don't think Apple intelligence
has to be that good.
2:46
I basically think it
just has to be good...
2:49
for investors to believe
Apple's competitive or just
2:52
doing something with AI.
2:53
But it doesn't have to be amazing for
Apple to still be winning because...
2:58
you're still buying an iPhone.
3:03
buying an iPhone?
Like,
3:05
if I'm someone who really cares about AI,
3:08
then there's so many other phones
that I would buy before an iPhone.
3:13
a Google phone or a Samsung
phone or a Xiaomi phone.
3:16
They all have the AI assistants
and the writing tools and the,
3:19
I don't know, the photo editing.
3:21
All this AI stuff that's way better
than what Apple's been making.
3:25
everything you just
mentioned is such a gimmick.
3:28
Like no one's actually buying a
new phone just to use that stuff.
3:32
Like it almost feels like Apple's
just playing along just to,
3:34
you know,
have some stuff that's comparable.
3:36
Oh yeah, here's some writing tools,
here's some photo editing with AI.
3:40
And,
and then of course the Siri improvements,
3:44
And Genmoji of course.
But here, tell me if you agree with this.
3:46
All of the fastest, most secure,
3:48
generative AI stuff happens on device,
right?
3:52
And then the bigger, more capable models,
that's what you go to the cloud for.
3:56
So as these on device models
get better and better,
3:58
you go to the cloud less and less, right?
Yeah...
4:02
someday you will basically
never have to go to the cloud.
4:05
You'll do all your stuff on device...
4:06
Who's gonna make that device?
4:10
Honestly don't think maybe.
4:12
like in this future where all these
early adopters finally get their
4:16
local on-device models,
4:17
doing tasks for them and running
everything locally with tons
4:20
of memory on these machines,
4:22
Apple's gonna be there to sell...
those machines.
4:25
That's where they fit into this AI puzzle.
4:27
And just 'cause they don't do
the software doesn't really
4:30
Like they don't do search engines either.
4:34
they sell you the device...
that should do the googling on.
4:38
Why do you think Nvidia wants to
make RTX Spark a thing so bad?
4:39
They want a piece of
that hardware pie too.
4:41
Especially outside the U.S.
4:44
what I think I hear you saying
4:46
is there's actually two different races.
4:49
In race number one,
the competition is so far ahead,
4:52
Apple's kind of already took the L,
but they can't look like they're losing.
4:56
So they have eventually cobbled
together enough of an AI suite
4:59
to not be embarrassing anymore.
5:01
But I think it's pretty clear
that in a world where company
5:04
A pays company B $1 billion
5:07
company B already won.
5:10
But in race number two,
5:13
way out on the horizon,
and Apple does have a bit of a head start
5:18
because they still make the iPhone,
5:20
and Apple is going to protect
that iPhone's position with
5:23
everything they've got.
5:25
Now, they could still win that race
5:29
there's nothing preventing OpenAI
from coming along and making
5:32
a phone and taking everything
5:34
from Apple, the iPhone company.
5:35
There are so many rumors of them working
on something like that already...
5:41
so Apple's gonna enter
a new product category,
5:43
and they're gonna do it the
exact same way they always do,
5:46
which is by making it work the best
5:48
with the iPhone.
And actually,
5:49
that's what they're doing with the...
5:51
Have you tried the beta?
5:53
The new Apple Intelligence
stuff like Siri pulls from
5:56
iMessage and Apple Calendar and Photos
5:58
in a way that the ChatGPT
6:00
app on the iPhone never could.
6:02
But Siri doesn't, like,
excel at anything that...
6:05
ChatGPT or Gemini doesn't already do.
Like,
6:08
we're not coding apps
or anything with Siri.
6:11
It doesn't even work in the background,
6:13
so you can't leave it and come
back later for large requests
6:16
like you can in the others.
6:17
It also doesn't remember anything
about you without making notes
6:20
in the iPhone's Notes app.
6:22
So it just has way less
of that personal context.
6:25
that's just basic stuff
you can already do today...
6:27
with the ChatGPT app on the iPhone.
6:28
Yeah.
Okay, so the real question...
6:32
an AI company is going to come along and
make some new hardware that's so good...
6:37
that it can get people to
switch from the iPhone?
6:42
do you believe...
Apple
6:43
could make their AI good enough...
6:46
to keep people on the iPhone?
6:52
So I won, right?
Hey, what are y'all talking about??
