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