Everyday AI Podcast – An AI and ChatGPT Podcast - EP 286: Apple's AI - Too little, too late?

Episode Date: June 4, 2024

Here's a lil secret. Apple's behind Microsoft. Like way behind. But, all reports are pointing to Apple announcing a HUGE partnership with OpenAI next week. Can OpenAI save Apple's AI fu...ture and help it compete with Microsoft? Or is it too little, too late? Newsletter: Sign up for our free daily newsletterMore on this Episode: Episode PageJoin the discussion: Ask Jordan questions on Apple's AIRelated Episode: Ep 285: NVIDIA announces new AI chip, a new Siri powered by ChatGPT – AI News That MattersUpcoming Episodes: Check out the upcoming Everyday AI Livestream lineupWebsite: YourEverydayAI.comEmail The Show: info@youreverydayai.comConnect with Jordan on LinkedInTopics Covered in This Episode:1. Current State of AI in Apple2. Apple's Approaching AI Announcement3. Comparison of Apple with Its Competitors4. Apple's Financial Situation and Market PositionTimestamps:01:50 Daily AI news05:40 Apple's upcoming WWDC event is highly anticipated.11:01 User feels Apple devices are outdated, prefers AI.17:22 Apple integrates natural language processing and device AI.18:35 On-device and cloud AI combo, potential issues.21:40 Apple's market dominance may be challenged soon.27:28 Apple's cautious approach to AI implementation.28:57 Microsoft's investment in OpenAI puts Apple at a disadvantage.34:31 Reportedly, a cash-strapped company fails building AI.36:04 Apple integrating ChatGPT in operating system.Keywords:Apple, AI integration, Siri, Safari, Photos, Notes, iMessage, on-device processing, cloud processing, smart recap tool, GPT-4.0, OpenAI, Microsoft, chat GPT, AI-powered apps, personal hardware space, Apple Vision Pro, Spotify, Project Gray Matter, generative AI, market share, WWDC, iOS 18, competitive position, financial performance, AI technology, innovation, operating system, desktop system, personal assistants.Send Everyday AI and Jordan a text message. (We can't reply back unless you leave contact info) Start Here ▶️Not sure where to start when it comes to AI? Start with our Start Here Series. You can listen to the first drop -- Episode 691 -- or get free access to our Inner Cricle community and all episodes: StartHereSeries.com Also, here's a link to the entire series on a Spotify playlist. 

Transcript
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Starting point is 00:00:00 This is the Everyday AI Show, the everyday podcast where we simplify AI and bring its power to your fingertips. Listen daily for practical advice to boost your career, business, and everyday life. Meet Firefly AI Assistant, now live in Adobe Firefly, the all-in-one creative AI studio. Just describe what you want to create and the assistant handles the rest, orchestrating multi-step workflows across Photoshop, Premiere Express, and more in one conversational interface. You direct the outcome. The assistant accelerates execution. The eyes of the tech world are going to be glued on Apple next week at its WWDC conference, where
Starting point is 00:00:52 after it seems like years of waiting, we will finally hear what Apple's AI plans are. So today we're going to give everyone a little bit of a preview of not just what Apple is set to release in terms of artificial intelligence, but also how we think it's. might be too little, too late. All right, I'm excited for today's episode. I hope you are too. But thanks for joining us. So welcome to everyday AI. We are your daily guide to learning and leveraging generative AI. So thank you all for joining us to our podcast listeners. Appreciate you as always. Make sure to check out your show notes. We always have related episodes, ways to reach out to myself and the team. So hey, we'd love to hear from you. Are you liking the
Starting point is 00:01:38 show? What do you want to hear more of? What do you want to hear less? of please let me know. And to our live stream audience, thank you for joining us as well. So before we get into this, I think a lot of things people are overlooking when it comes to Apple and their AI announcements coming next week, June 10th of WWDC. Before we get started on that, got to put in a little plug. Make sure you go to your everyday AI.com. Sign up for our free daily newsletter. Yes, we are a podcast. Yes, we are a live stream. But I think the newsletter is actually where you grow your company and grow your career. So make sure you check out our daily free newsletter that I think is your guide to growing.
Starting point is 00:02:15 So before we talk about Apple, let's first start the day as we do every single day by going over the AI news. You got to keep up with what's happening because there is a ton. All right. So let's start with Intel while they've unveiled new AI chips for their data centers at the Computex Tech conference. So at Computex, Intel announced their Xon 6 processor promising, promising, enhanced performance and power efficiency for high intensity data center workflows compared to its
Starting point is 00:02:43 predecessor. So the company revealed that prices for its gaudy two and gaudy three AI accelerators are lower than those of rival chips aiming to provide cost-effective AI training and inference solutions. So this move by Intel comes right after Nvidia and AMD recently launched new AI chips, intensifying competition in the AI industry in signaling a shift in. Sigmundling a shift and focus for Intel toward AI technologies. And it looks like, hey, I mean, you saw it here from Intel. It looks like companies are just going to try to compete on price because it seems like no one can compete in terms of power and efficiency with Nvidia.
Starting point is 00:03:21 So pretty strategic move here from Intel going on price. And yes, speaking of Nvidia, saw one of the biggest gains ever from Nvidia yesterday, shooting up about 5% after its own AI announcements over the weekend. All right. Next, everyone's getting in on AI, even micro-computer company Raspberry Pi. So Raspberry Pi, yeah, that little like $30 computer while they're planning to release an AI chip for its microcomputer that can run AI applications with a lower power consumption and processing power than other AI chips.
Starting point is 00:03:55 So this obviously reflects the ongoing trend of Edge AI and bringing kind of that computes power to actual devices and out of the cloud. So Raspberry Pi is releasing that AI chip. for its microcomputer that can run AI applications natively. So the chip has a lower power consumption and processing power, but is still able to run some popular AI tasks. So pretty exciting news, especially if you're a Raspberry Pi fan.
Starting point is 00:04:21 I think I used to back in the day when I was a little bit more of a dork than I am now. All right. And last but at least, SAP has announced some big large language model partnerships and integrations. So SAP unveiled some new AI innovations and partnerships at their annual SAP Sapphire conference, showcasing the company's commitment to infusing business AI into their enterprise cloud portfolio.
Starting point is 00:04:45 So SAP's generative AI co-pilot, Julie, is expanding throughout the company's solution portfolio and now integrating with Microsoft co-pilot to provide unified access to information. So as well as co-pilot, so SAP did also announce the availability of META's Lama models and Mistral models. Speaking of models, hey, Chad GPT was down overnight for millions of users, but seems to be back up and running.
Starting point is 00:05:13 So if over the last couple of hours you couldn't get any work done, that might have been why. All right. So there's always a lot more AI news in our newsletter where we recap our episode every day. Go over those news stories and a lot more, some of our favorite finds from across the web, just to keep you up. You don't got to spend hours a day trying to keep up. You've got to spend about seven minutes a day reading our newsletter. All right. So let's get straight to it. And let's talk about Apple's AI if it's too little,
Starting point is 00:05:40 too late. And hey, to our live stream audience, thank you as always for tuning in. Brian and Rolando from South Florida. We got Jay and hey, Fred holding it down for Chicago. Love to see it. Tara from Nashville, Woozy from Kansas City, some of our usuals. But I'd love to hear from you all or our podcast audience. Reach out to me on LinkedIn. Send me an email. What do you think about Apple's AI? Is it going to be too little too late? that's my thought. So let's just dive into it. But I'm going to go ahead and just kind of skip to the end.
Starting point is 00:06:12 And I'm going to tell you exactly what's going on, what you need to know. And then we're going to go ahead and pick it apart piece by piece. So Apple's WWDC conference is coming up on Monday. So we are less than a week out. And I thought it would be a good time to update everyone. But here's what I think. I think ultimately this is going to. to underwhelm.
Starting point is 00:06:36 I think Apple has completely missed the mark on integrating generative AI into its software and hardware. They are not just weeks or months, but they are years behind their closest competitors in Microsoft, Samsung, Google, etc. And if I'm being honest, I'm a huge Apple fan. And for the first time, I don't know, in 15,000. plus years, I'm even personally considering leaving all my Apple, right? I said this yesterday.
Starting point is 00:07:11 I'm recording right now on my iPhone. You know, this is being recorded and I guess streamed, you know, through my, through my Mac computer. But I think Apple is so far behind and they've made so many missteps when it's, when it's come to their generative AI implementation. So we're going to talk about that. But I think Microsoft actually has its first real. advantage in decades, right? So Apple obviously competes with a lot of different people,
Starting point is 00:07:39 depending on what you're looking at. They obviously compete with hardware when it comes to PCs, mainly with Microsoft. They're competing hardware for smartphones, right? They're competing with Samsung and Google, mainly, among others, and obviously with software as well. So the operating systems, you know, you have your OS for your desktop and your kind of iOS for your mobile. And I think in every single major area of Apple's business, they are so far behind. They are so far behind. And if I was sitting in the boardroom at Apple, I would not be happy. I would actually be shaking in my boots for the first time in a decade plus.
Starting point is 00:08:25 And that's not just random, you know, rumblings. I'm obviously, you know, you know, I bring receipts here. But I wanted to skip to the end. But for our audience, hey, it is Hot Take Tuesday. Doug called it. I love to see it, y'all. I actually do have a lot of hot takes. I don't know.
Starting point is 00:08:42 I don't know how I should say this because I am a big Apple fan, but let me know, do you want this? Should I be nice? Should I play nice to Apple? Or should I just bring the heat, like flame throw or stop? Let me know as I take a little sip on my water and we are going to break this down as we always do. We do these hot take Tuesdays where I usually come with an opinion. You know, most days on Mondays, we recap the AI news that matters.
Starting point is 00:09:10 And then usually Wednesday through Friday, we usually have expert interviews. I think we got like Wednesday, Thursday, Friday lined up for the next couple of weeks. But hot take Tuesday, sometimes I give an opinion. So what do you all think? Jennifer says we should burn it down. Adobe just introduced an entirely new way to create, bringing the power and precision of its creative suite into one conversational experience. Meet Firefly AI Assistant, now live in the Adobe Firefly app, the All In One Creative
Starting point is 00:09:45 AI Studio. Powered by Adobe's Creative Agent, Firefly AI Assistant lets you start with your vision, just describe what you want, and shape the outcome as it takes form with the Assistant. The Assistant orchestrates multi-step workflows, drawing on 60-plus pro-grade tools across Adobe Creative Cloud apps, including Photoshop, Illustrative Premiere, Lightroom Express, and more to help bring your ideas to life. You can also get started with creative skills, a growing library of pre-built workflows for common creative tasks like batch editing photos, creating mood boards, portrait retouching, and creating social variations. Every step the assistant takes is visible
Starting point is 00:10:26 so you can refine, redirect, or take over at any time. You stay in the driver's seat as the creative director. Adobe Firefly AI assistant now in public beta. See it today at Firefly. I might have to take it soft. I don't see a lot. Don't see a lot of flame throwers. So we might have to take it soft today. All right. So all right.
Starting point is 00:10:51 Well, Tanya says three. So we'll see here. But hey, I'd love also to hear your take, whether you want to give it now or at the end of the episode or email me, reach out to me on LinkedIn. I'd love to hear. But let's get up to speed first. All right.
Starting point is 00:11:06 Let's go over all the details. So like I said, June 10th, we have the worldwide developer conference, which is Apple's, you know, yeah, they have a lot of, you know, conferences and events, but this is generally their marquee event of the year where they announce what they are working on. So this WWDC, and this is not from me, a lot of people are saying this is the biggest WWC in a decade or maybe since the iPhone was released, which is wild. And this is why a lot of analysts and just everyday people are looking at Apple and saying, what the heck is going on, the world, the business world runs and lives on generative AI now.
Starting point is 00:11:49 And the fact that here we are in 2024 and we do still not have generative AI on our Apple hardware and software is kind of crazy, if I'm being honest. And we're going to break down what this has meant financially for Apple dragging its feet. But I've said this once. I've said this a thousand times. never first. They're very rarely first with anything, right? A lot of times, you know, kind of the joke is when Apple announces something, whether it's at their WWDC or elsewhere, people, you know, Google users or Windows users are like, oh, you know, enjoy that feature we had three years ago.
Starting point is 00:12:27 And I think that this has this kind of feeling has only grown exponentially louder over the last couple of years because AI innovation moves at a breakneck speed, right? Large language models, generative AI solutions, text to video, text to photo, text and all these things are moving so quickly. And if I'm being honest, right, as someone that uses many different generative AI tools and systems every single day, when I'm using my Mac or my iPhone, it feels like I'm in the 90s, y'all. It feels like such an archaic, slow, unintuitive piece of.
Starting point is 00:13:04 technology. I personally, and I'd love to hear from our live audience, I feel such a disconnect working on a day to day, you know, on my Mac or on my iPhone, because when I'm using all these other generative AI systems, whether you want to talk about chat GPT, copilot, perplexity, you know, mid-jury, 11 labs, like, whatever you want to talk about. I feel like I'm already working in the future, whereas when I'm on a Mac or on an Apple device, I feel like I am working in the past. There's such a disconnect for me personally. In Apple, they're never the first.
Starting point is 00:13:38 They're usually the last, but they usually do the best. But this might be one of those instances. It might be too late. It might be too late. All right. So let's go ahead. Yeah, yeah. What Christopher says, Christopher love the comment here saying,
Starting point is 00:13:57 doesn't Apple normally bring a product second to market, but will make it more user-friendly? Absolutely. I wouldn't even say they're second to market. I would usually say they're third or fourth or sometimes last in this case, right? In this case, when it comes to generative AI, they are last. Everyone, everyone's been at this party. The party's already shutting down, y'all. Like, if I'm being honest, generative AI, we get bombarded with it on a day to day. If Apple would have announced this last year, I think they would have announced it to much more fanfare in less pressure and less expectations. But at this point, parties winding down. Right. Yeah, you want to be the cool kid of the party. You don't want to be the first one to show up. But this party seems like it's already shutting down. I'm not saying that we're going to stop using generative AI or the generative AI hype is dying down. Anything like that. I'm not saying that. But when it comes to big companies, these trillion dollar companies making announcements, you got to go in while it's hot. Right. Yeah. I don't think even with all of Apple's beautiful marketing, UI, U.S. right? I think this is going to fall flat. All right. So let's go ahead and give everyone a quick recap.
Starting point is 00:15:07 All right. So this is what Apple has codenamed Project Gray Matter, right? So their entire AI strategy has been codenamed Project Gray Matter. All right. So also this integration with Open AI. So it's gone back and forth. Right. So originally there is reporting that said Apple was spending millions with an S millions of
Starting point is 00:15:30 dollars a day building its own models. And we actually saw Apple via research papers release multiple large language models and multimodal language models. So it's kind of interesting that we've seen all of this flip-flop. But where we ended with is we are expecting Apple to announce their partnership with Open AI. That is, again, not confirmed, but that's where all the reporting over the last three weeks has pointed.
Starting point is 00:15:58 after first, it was going in every direction, right? We heard, oh, there was Apple Ajax or Apple GPT, right? And then Apple released all their research papers going over there, their own models that they built in a house that looked fairly impressive. And then we had this, oh, nope, Apple, you know, more than a year ago, Apple's testing out chat GPT. But then we heard, oh, no, they're in partnership talks with Google. And we heard that they were close to using Gemini, which I said six months ago.
Starting point is 00:16:25 I said, if Apple comes out with their own model or if they come out via Gemini, they are going to fail. I said, like, go back, y'all. I do this every day. I said, if Apple chooses anyone but Open AI, they are going to fail. I think they made the right choice, but this should have been happening a year ago. So, you know, we heard all this back and forth, but what we are assuming is on Monday, we are going to hear all of these details of Apple's partnership with. Open AI. So ultimately what that means is we're looking at an integration, essentially,
Starting point is 00:17:00 of GPT40 or a version of it, into the iOS 18 operating system through a deal that is reportedly worth more than a billion, with a B, more than a billion dollars. So what does that mean? Well, it means a smarter Siri, first of all, right? If you've used Siri or Alexa or any of those, you know, quote unquote smart assistants, they are dumb assistants. They are, the absolute worst. So maybe Siri could have an assistant that maybe keeps up with the Google assistant, which I think is getting better and better. Alexa is left in the dust, but that's another conversation for another day.
Starting point is 00:17:39 Also, a lot of what analysts are expecting out of this Apple OpenAI partnership is essentially what we saw from OpenAI about three weeks ago when they did their spring event. And they showed us not just the new model in their GPT4, but they also showed us the apps, right, which they don't, like, no one has access to that yet. So presumably that is a version of what we are going to be seeing with this Apple and Open AI partnership, right? So if you miss that, I'm not going to recap the entire thing, but think of it like this. Think of FaceTiming and having the smartest expert in the world in any field and being
Starting point is 00:18:21 able to FaceTime them and show them something live and in real time. That's essentially at least what was shown to us at OpenAI's spring event in GPT40 with kind of this live, this live capability to interact with the model. So presumably we will be seeing some sort of variation of that rollout, although some reports are saying we will not see that end of the partnership, kind of this live model or this improved Siri until 2025. and first, at least what's under this, you know, quote unquote, Project gray matter, we will not see that initially. So this could be rolling out in phases, keep that in mind. So some things that we probably will see out of the gate, out of this first announcement, is AI-powered Apple apps.
Starting point is 00:19:07 So when we talk again about Siri, at least having more of that natural language processing, better voice, kind of what we have now out of the chat GPT desktop app. and the chat GPT mobile app, having that AI integration with not just Siri, but Safari, with photos, with notes, with I message, right? So with Apple's at least built-in apps. The other big piece here is, well, a combination, a combination of on-device AI processing, so what is called Edge AI or, you know, mobile AI on-device AI. There's different names for it, but we are going to probably see, according to reports,
Starting point is 00:19:48 a actually combination of on-device AI processing and cloud processing. So not moving everything local, which should be interesting to see how and if Apple's trademark security is, you know, not compromised, but if they're looked at in a different way. So Apple has always, I think, been one of the leaders in security, which is why I think they've been extremely popular over the last, you know, decade or two. So we should see how this affects their security if it does at all. So this combination of on-device AI and cloud AI, it should be interesting how that works, right? Because the last thing you want, you know, whether you're, you know, let's say you're traveling and you're on an airplane or you're just in an area where, you know, maybe you don't have service, which I know might sound crazy, but, you know, I was in Georgia recently and I didn't have service in a lot of places, right?
Starting point is 00:20:42 So I think that part could be a delicate balance. And we've seen how some Apple snafus of the past, specifically when it comes to service, have prevented their phones from even operating, right? There's the infamous, you know, you're holding it wrong of the iPhone, right? When apparently, you know, Apple didn't take into consideration that someone's finger was covering up an internal antenna ban and then it didn't have service, right? So it should be interesting on how this all wrong.
Starting point is 00:21:12 rolls out. But what I think is probably going to be their best feature out of the gate is this smart recap is what it's being called, which allows you to summarize mixed, missed text messages, notifications, emails, web pages, et cetera. Presumably you would do that through a combination of Siri or kind of a smart assistant that you could, that just has access to your data across the different Apple apps. So I think that could be pretty big, right? But again, is that a groundbreaking feature? Absolutely not, right? If you've been using co-pilot from Microsoft, this is going to seem like last year's news. But for so many people that aren't using, you know, 365 copilot or co-pilot pro and haven't had this, this might seem like a novel
Starting point is 00:22:00 feature. So we'll see how that kind of quote-unquote smart recap is actually rolled out. So we'll see. Oh, oh, sorry. Hey, sorry to anyone out there in monitoring. is said here, listening on LinkedIn and I just triggered your S-I-R-I. Sorry about that. Didn't mean to do that, y'all. All right. So here's the hot take. Nothing, nothing that Apple is set to announce.
Starting point is 00:22:31 Again, we could be surprised, right? Aside from, oh, AI powered emojis, who cares? Aside from that, it doesn't look like Apple is actually. announcing anything truly unique when it comes to AI, which makes you think, is Apple too little too late? That's why I think they are. Yes, they are going to probably wrap it up in a better UI, UX, so a better interface, a better experience for customer, sure, but does that even matter anymore?
Starting point is 00:23:08 Right. I think in this day and age, when so much of, I think when we look at 2024 and 2025, it's going to be predicated on how quickly you can go to scale, how quickly you can integrate generative AI and large language models into your professional workflow. But a lot of times that line bleeds between your professional life and your personal life, right? So if Apple is months or quarters or years behind, I don't know how much longer they are. are going to have a stranglehold on the market, right? And there's another piece, which isn't really AI,
Starting point is 00:23:48 but Apple has run into some issues, right? With its, you know, MMS or I message. So that whole, you know, blue bubble, you know, marketing advantage might be going away soon because Apple's facing a lot of legal trouble. So they might roll out to a more universal RCS messaging. protocol. That's not too, too related to AI for the day, but that's worth talking about. But I don't know what Apple is going to be announcing that is truly unique. Will I be excited about it?
Starting point is 00:24:20 Sure. Right? Because right now I use Apple devices. Are we only going to see things on the phone for now? That's what it looks like. We may be seeing some of these things on desktop, but I think so much of what we might be expecting or the new things from Apple already available. already available via chat GPT,
Starting point is 00:24:41 already available via Microsoft co-pilot, already available via Google, right? As Google is starting to slowly roll out finally useful features and it's Gemini product, I don't think we're seeing anything truly unique, y'all. And I think Apple is missing the mark again. Yeah, I say that again. We got the receipts, y'all.
Starting point is 00:25:05 I told you, I don't know how many months ago this was, probably like six months ago, before Apple released the Vision Pro, everyone, everyone, analysts, everyone was like, oh my gosh, this is going to change the world, change the way we work. Apple Vision Pro, we're all going to be walking around with $3,600 headsets, and that's the future. And I said, that's silly. Go back and listen. I said, I literally had an episode, a hot take Tuesday called Apple Vision Pro, the AI
Starting point is 00:25:34 powered product that hardly no one needs. and I said it was going to be a massive flop, and it was a massive flop. So I don't say these things lightly, y'all, especially as a quote unquote Apple fanboy. But I think Apple's missing the mark here. I think they are going to lose market share in the long run because they were too slow. And I think a lesson can be, yeah, are they still going to be one of the five biggest market cap companies in the U.S.? Absolutely. I'm not saying that they're going to lose.
Starting point is 00:26:07 billions of dollars, I just think that they're going to be growing at a slower rate than their competitors. Don't worry, I have receipts for that at the end. That's not just my random take. But I think Apple has been missing the mark over the last couple of years. And I don't know how much longer they're going to be able to ride this wave of, oh, Apple's cool, Apple's sexy, apples, this, ooh, cool, this, UI, Ux. I don't know how long that's going to last.
Starting point is 00:26:35 Blue message bubbles, right? Like, what's Apple doing? Why, like, why have they been asleep at the wheel for years? All right. But like I said, don't get me wrong. Analysts are going to love this. You're going to see book market, book market right now. Monday, presumably we're going to see this Apple Open AI partnership announcement.
Starting point is 00:27:01 Analysts are going to love it. Their stock is going to see a nice little bump. I'm not talking, probably not like a 5% like we saw, of Nvidia, you know, yesterday after their announcement of the new Ruben Chip at Computex. But analysts are going to love this. The journalists who don't know any better are going to love this. Apple users are going to love this. And then it's going to die down.
Starting point is 00:27:23 And then in the coming, I think, weeks and months, people are going to start to realize that, hey, this is more marketing than bite. All right. And I think at like the analysts, y'all, I think the analysts slept. I think the collective business world slept on Microsoft's announcements at Microsoft Build. I watch that and I'm like, whoa, this is impressive. This is innovation. We're not seeing innovation out of Apple anymore like we were 10, 15, 20 years ago.
Starting point is 00:27:58 Apple is not an innovation company anymore. Apple is a cautious copycat company that just brings better marketing, better UI, better UX, better user experience, better interface, better marketing. We are not seeing innovation from Apple. What we are expecting June 10th, that won't be innovation. The Apple Vision Pro, not really innovation, right? Other companies have had similar headsets for years. All right.
Starting point is 00:28:32 So let's look at the competitive landscape real quick. Yeah, Kathleen. Kathleen dropped a boom. I'm not taking it easy. I'm not taking it easy. All right. So let's quickly look at the competitive landscape so you can see what I'm saying. Because here's the thing.
Starting point is 00:28:51 Companies like Google, companies like Microsoft, they have less to lose. Apple has a lot to lose. They compete mainly in, Two spaces, right? A couple spaces, right? But personal hardware, right? That's it.
Starting point is 00:29:10 Right? Computers, phones, watches. They don't sell software. Software comes included with the hardware. So Apple has more to lose than any other company when it comes to implementing generative AI at the first go, which I understand is maybe why they took a much more cautious approach, but I think it is too cautious. overly cautious, right? So let's just look where Apple competes. Apple competes on the smartphone
Starting point is 00:29:37 market, obviously with Google, with the pixel and with Samsung. Guess what? They've had on device AI not quite a year, but going on nearly a year. And by the time, presumably we might see these features roll out in September. That's the usual kind of release cycle. So we'll hear you know, an announcement and a bunch of marketing and a bunch of commercials everywhere, you know, Apple AI, wow, look, we're awesome. And we might see it in September just on the phones. We might see it also rolling out at the same time on the desktop or it might be in 2025 when we see that.
Starting point is 00:30:15 But Apple is competing on the smartphone market. And Google and Samsung are ahead. The S24 has had edge AI now for, I don't know, seven months, something like that. that probably probably even longer all right they're behind they're behind in smartphones operating system right on the ios apple's competing versus google they're behind right on the desktop competing versus Microsoft so far behind that is one of the things Microsoft with its reported 10 billion to 13 billion dollar investment into open AI reportedly has a 49% equity stake right And we talked about this being reportedly a billion-dollar-plus deal.
Starting point is 00:31:01 How hard of a pill must it have been for Apple to swallow, knowing that this was ultimately a billion-dollar-plus deal with Microsoft, or sorry, with Open AI. But it is Microsoft also that benefits. Apple is in a lose-lose situation here, y'all. If this is, again, this is still an if, but if this is ultimately what we see, this has been what's been reported. Apple is just paying one of their biggest competitors through a partnership with OpenAI and integrating chat GPT into the operating system into the iOS.
Starting point is 00:31:40 Right. Similarly, right, if they're running on the OS as well, running on the desktop operating system, lose-lose situation, right? Because guess who benefits from all of this training data, right? A Microsoft, or sorry, a Apple Open AI partnership makes Microsoft stronger. Microsoft has a two plus year head start, right? They have countless amounts of data, iterations, improvements into their, right? Microsoft co-pilot runs on GPT40.
Starting point is 00:32:17 All this is going to make the GPT technology better, which ultimately makes Microsoft Microsoft better. Apple is in a lose-lose situation. They didn't finish their own model. You can't go with Google Gemini because it's a bad model. And now you are stuck with partnering with Open AI, which actually makes one of your biggest competitors better, stronger, and richer. They're going to lose-lose here, y'all. Even personal assistance, right? This, if I'm being honest, this might be the only one where Apple and Syria have a fighting chance, right? There is no more Cortana from Microsoft. So, you know, we're seeing this co-pilot essentially get these GPT features. So maybe Apple will be able to compete with the Google Assistant, right?
Starting point is 00:33:07 So let's start wrapping this one up here. And sorry, y'all, if I miss any of your questions. But let me know. I'm going to go through later. If you're joining us here on LinkedIn, I'm going to go through and ask or sorry, try to answer some questions. Yeah, interesting here, Douglas saying, is it time for Tim Apple to let a new CEO take over? I don't see that happening. I don't see that happening. But I don't. I mean, if I were sitting in that boardroom, I would be wanting to clear house with just about everyone else, if I'm being honest.
Starting point is 00:33:42 This is a multi-year failure on Apple's part. But in the end, let's talk about this. It's all about money and the marketing. So I told y'all we would have some receipts. All right. So stick with me here. This is important. In the end, it's all about the money. You got to look at the money. All right. So over the past year, let's just look at year. All right. Apple's not doing too good, y'all. Apple's not doing too good. All right.
Starting point is 00:34:13 So let's look at Google over the past year. Their stock is up 37%. Pretty good. Pretty good, Google slash alphabet. Microsoft up 23%. And if for our live stream audience showing these graphics here and these are fresh this morning, right? Gradual uphill climb, right? For both Google and Microsoft, Google up 37% year over year. And Microsoft up 23%.
Starting point is 00:34:46 Let's look at Apple. 8%. Oof. But not just that. Less than a month ago or about one month ago, Apple was actually down year over here, which is wild considering how well the market is doing here in the U.S. And these magnificent sevens, you know,
Starting point is 00:35:14 when we talk about Microsoft and meta and Google and Amazon, Nvidia skyrocketing because of AI. Apple, up until this Open AI partnership from reporting seemed to be official, they were down. They were down year over a year because Apple has grown stale. They've just turned in to a copycat company with better marketing and a better user experience. but the innovation is lacking generative AI non-existent. So are we going to see a huge stock bump, you know, in the coming weeks and months and
Starting point is 00:35:59 quarter? Probably. But after that, I see Apple struggling to keep up. Because like I said, a lot of what's been happening over the last couple of years, you know, Apple's acquired a bunch of small AI companies. They again, reportedly were spending millions with an ass millions of dollars a day trying to build their own model and reportedly failed. I mean, we'll see if that is the truth come Monday, but they reportedly failed. One of the most cash-strapped companies in the world couldn't get it right.
Starting point is 00:36:39 They couldn't get it done soon enough. And y'all, as much as this pains me to say this as an app, Apple fan, I think it's too little too late. I don't think that they have a competitive edge anymore. The future of business and even the future of how we run our personal lives, I think is AI first. And Apple has been last in AI. So I think they'll just have to market their way to profits. I don't know.
Starting point is 00:37:12 How far are AI powered emojis going to take the Apple? talk. All right. That's it, y'all. Hot take Tuesday, wrapping up. So let's just do a very, very quick recap here. All right. So nothing is official yet, but everything is pointing to. We are going to see that official announcement from Apple and Open AI on June 10th, which is less than a week away. Here's what we are reportedly going to see from Project Gray Matter. We're going to see the integration of ChatGPT into the operating system, a smarter Siri, AI powered Apple apps like Siri Safari, photos, notes, eye message, etc, a combination of on-device and cloud processing and a smart recap tool.
Starting point is 00:38:04 We're probably, I think, going to see a lot of mainly what we saw from Open AIs demo day, their spring event with GPD40 and kind of this live Omni. or heard what a lot of people are saying. I think we're just going to see that with better marketing. But I don't think it is going to save Apple in the long run. I think Apple waited too long and it's too little, too late. That's it for today, y'all. Thank you for joining.
Starting point is 00:38:33 I appreciate it. And I'd also appreciate it. If you're listening on the podcast, reach out. Say hi. We always leave my personal LinkedIn and email. Sometimes it takes me a minute to get to all the messages, but I appreciate it. reach out. But if you are listening on the podcast, please tell a friend, leave us a rating if you're listening on Spotify or on Apple. And if you're joining us live here, thank you for that support.
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