Ep 286: Apple’s AI – Too little, too late?

Apple’s AI Developments: A Step Forward or Too Little Too Late?

The integration of Generative AI into operating systems and apps has now become a must-have rather than a luxury. One noteworthy candidate that has joined the bandwagon is Apple, integrating ChatGPT into its OS and bringing AI-powered enhancements to apps like Siri, Safari, Photos, Notes, and iMessage. One suggested tool is a smart recap facility, combining on-device and cloud processing. Though the idea is commendable, a question arises – is this a case of too little, too late?

Current AI Trends and OpenAI's GPT-4o

Comparisons are inevitable when discussing a tech giant like Apple. Look no further than OpenAI's demo day and GPT-4o developments. They undeniably set the gold standard in generative AI, boasting impressive advancements and excellent marketing. Risings trends indicate that cautious, albeit late, implementation of generative AI may leave Apple behind competitors like Google and Samsung who have already adopted AI into their hardware line up.

Apple's Competitive Edge and Financial Growth

Apple hasn't shown the same level of innovation as its peers in recent times. Its recent stock performance trails behind Google and Microsoft. While it's hard to point a finger and attribute this to a lack of generative AI, it certainly raises some questions. Will an absence of innovative AI features potentially stall future growth and dent Apple's competitive edge in the market? It's a situation worth pondering.

WWDC Conference and Project Gray Matter

Even with skepticism abound, Apple isn’t written off yet. The upcoming WWDC conference could bear witness to the revelation of Apple’s AI plans. Apple's AI strategy, named Project Gray Matter, is particularly intriguing. This project entails partnering with OpenAI to incorporate GPT 4.0 into the iOS 18 operating system, which may eventually revive Siri and bring AI to Apple apps. However, concerns exist that this may be the case of a tech giant grasping the coattails of generative AI trends, thus failing to generate a significant impact due to late entry.

In Conclusion

Integrating AI into Apple’s core suite can be seen as a much-needed step in the right direction. Amidst fears of a dwindling competitive edge and a questioning voice demanding innovation, the AI move might be Apple’s joker card. However, the AI world will be closely observing if Apple's AI ventures would be a leap forward or just catching up with the competition. Only time will tell if Apple’s bold move to partner with OpenAI could strengthen its position in the AI race, or if it's a step taken too late. It indeed is an interesting time for Apple, bearing significant implications for the future of AI integration in personal technology.

Topics Covered in This Episode

1. Current State of AI in Apple
2. Apple's Approaching AI Announcement
3. Comparison of Apple with Its Competitors
4. Apple's Financial Situation and Market Position

Podcast Transcript

Jordan Wilson [00:00:15]:
The eyes of the tech world are going to be glued on Apple next week at its WWDC conference where after it seems like years of waiting, we will finally hear what Apple's AI plans are. So today, we're gonna 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 might be too little too late. Alright. 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.

Jordan Wilson [00:00:56]:
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 show? What do you wanna hear more of? What do you wanna hear, Liza? Please let me know. And to our livestream audience, thank you for joining us

Jordan Wilson [00:01:15]:
as well. So before we get into this, I think a lot of

Jordan Wilson [00:01:20]:
things people are overlooking when it comes to Apple and their AI announcements coming next week, June 10th at WWDC. Before we get started on that, gotta put in a little plug. Make sure you go to your every day ai.com. Sign up for our free daily newsletter. Yes. We are a podcast. Yes. We are a livestream.

Jordan Wilson [00:01:37]:
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. 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 gotta keep up with what's happening because there is a ton. Alright. 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 Xeon 6 Processor promising, promising enhanced performance and power efficiency for high intensity data center workflows compared to its predecessor.

Jordan Wilson [00:02:14]:
So the company revealed that prices for its Gautti 2 and Gautti 3 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 and signaling a shift in 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 gonna try to compete on price, because it seems like no one can compete, in terms of power and efficiency with NVIDIA. 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. Alright.

Jordan Wilson [00:03:06]:
Next, everyone's getting in on AI, even microcomputer 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. So this obviously reflects the ongoing trend of edge AI and bringing, kind of that compute 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 pretty exciting news, especially if you're a Raspberry Pi fan. I think I used to back in the day, when I was a little bit more of a dork than I am now. Alright.

Jordan Wilson [00:03:57]:
And last but not 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 show company, showcasing the company's commitment to infusing business AI into their enterprise cloud portfolio. So SAP's generative AI copilot, Julie, is expanding throughout the company's solution portfolio and now integrating with Microsoft copilot to provide unified access to information. So as well as Copilot. So SAP did also announce the availability of Meta's llama models, and Mistral models. Speaking of models, hey. ChatGPT was down overnight for millions of users, but seems to be, back up and running. You know? So if over the last couple of hours you couldn't get any work done, that might have been why.

Jordan Wilson [00:04:48]:
Alright. 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 gotta spend hours a day trying to keep up. You gotta spend about 7 minutes a day reading our newsletter. Alright. So let's get straight to it, and let's talk about Apple's AI if it's too little, too late. And, hey, to our livestream audience, thank you as always for tuning in, Brian and Rolando from South Florida. You know, we got Jay and hey, Fred holding it down for Chicago.

Jordan Wilson [00:05:21]:
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.

Jordan Wilson [00:05:39]:
But I'm gonna go ahead and just kind of skip to the end, and I'm gonna tell you exactly what's going on, what you need to know, and then we're gonna go ahead and pick it apart p by, 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

Jordan Wilson [00:06:01]:
I think. I think, ultimately,

Jordan Wilson [00:06:05]:
this is going to underwhelm. 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, etcetera. And if I'm being honest, I am a huge Apple fan. And for the first time, I don't know, in 15 plus years, I'm even personally considering leaving all my Apple. Right? I said this yesterday. I'm recording right now on my on my iPhone. You know, this is being recorded and I guess streamed, you know, through my through my Mac computer.

Jordan Wilson [00:06:50]:
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 gonna 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 depending on what you're looking at. They obviously compete with hardware when it comes to to PCs mainly with Microsoft. They're competing with 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 you know, you have your OS for your desktop and your kind of iOS for your mobile.

Jordan Wilson [00:07:36]:
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. And that's not just random, you know, rumblings. 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.

Jordan Wilson [00:08:08]:
Doug called it. Love to see it, y'all. I actually do have a lot of hot takes. I don't know. 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,

Jordan Wilson [00:08:22]:
or should I just bring

Jordan Wilson [00:08:24]:
the heat flame like, flamethrower style? Let me know as I take a little sip of 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 we recap the AI news that matters. 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 y'all think? Jennifer says we should burn it down. Might have to take it soft.

Jordan Wilson [00:09:00]:
I don't see a lot. Don't see a lot of flamethrowers, so we might have to take it soft today. Alright. So alright. Well, Tanya Tanya says 3, so we'll see here. But, hey, I'd love also, I'd love also to hear your take, whether you wanna 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.

Jordan Wilson [00:09:20]:
Alright. 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. 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.

Jordan Wilson [00:10:19]:
And and we're gonna break down what this has meant financially for Apple dragging its feet. But I've said this once. I've said this a 1000 times. Apple's never first. They are 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 w w, DC or elsewhere, people, you know, Google users or Windows users are like, oh, you know, enjoy that feature we had 3 years ago. And I think that this has this kind of a 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 to mute, all these things are moving so quickly.

Jordan Wilson [00:11:01]:
And if I'm being honest, right, as someone that uses many different generative AI tools and and and systems every single day, When I'm using my Mac or my iPhone, it feels like I'm in the nineties, y'all. It feels like such an archaic, slow, unintuitive piece of technology. I personally and I'd I'd love to hear from our live audience. I feel such a disconnect working on a day to day, you you know, on on my Mac or on my iPhone because when I'm using all these other generative AI systems, whether you wanna talk about chat, GPT, Copilot, Perplexity, you know, MidJourney, 11 Labs, like, whatever you wanna 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. They're usually the last, but they usually do the best.

Jordan Wilson [00:11:55]:
But this might be one

Jordan Wilson [00:11:56]:
of those instances, it might be too late. It might be too late. Alright?

Jordan Wilson [00:12:03]:
So let's go ahead. Yeah. Yeah. What Christopher had, what Christopher says Christopher love, love the comment here saying, doesn't Apple 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 3rd or 4th 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.

Jordan Wilson [00:12:30]:
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, party's winding down. Right? Yeah. You wanna be the cool kid of the party. You don't wanna be the

Jordan Wilson [00:12:49]:
first one to show up, but this party seems

Jordan Wilson [00:12:52]:
like it's already shutting down. I'm not saying that we're gonna 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 $1,000,000,000,000 companies making announcements, you gotta go in while it's hot. Right? Yeah. I don't think even with all of Apple's beautiful marketing UI UX. Right? I think this is gonna fall flat. Alright.

Jordan Wilson [00:13:18]:
So let's go ahead and give everyone a quick recap. Alright. So, this is what Apple has codenamed project gray matter. Right? So their entire AI strategy has been code named, project gray matter. Alright? So, also, this integration with OpenAI. So it's it's going back and forth. Right? So, originally, there is reporting that said Apple was spending 1,000,000 with an s, 1,000,000 of dollars a day building its own models. And we actually saw Apple, via research papers, release multiple large language models and multimodal language models.

Jordan Wilson [00:13:55]:
Right? So, it's it's it's kind of interesting that we've seen all of this flip flop. But, you know, where we've where we ended with is we are expecting Apple to announce their partnership with OpenAI. That is, again, not confirmed, but that's where all the reporting over the last 3 weeks is pointed. After, at 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 their 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 ChatGPT, but then we heard, oh, no.

Jordan Wilson [00:14:33]:
They're in partnership talks with Google, and we heard that they were close to using Gemini, which I said 6 months ago. 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 OpenAI, 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 OpenAI. So, ultimately, what that means is we're looking at an integration essentially of GPT 4 o or a version of it into the iOS 18 operating system through a deal that is reportedly worth more than a 1,000,000,000 with a b, more than $1,000,000,000.

Jordan Wilson [00:15:27]:
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, you know, that's another conversation for another day. Also, a lot of what, analysts are expecting out of this Apple OpenAI partnership is essentially what we saw from OpenAI about 3 weeks ago when they did their spring event. And they showed us not just the new model in their GPT 4 o, 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 a version of what we are going to be seeing, with this app Apple and OpenAI partnership.

Jordan Wilson [00:16:25]:
Right? So if you missed that, I'm not gonna recap the entire thing, but think of it like this. Think of FaceTiming, and and having the smartest expert in the world in any field and being 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 GPT 4 o 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.

Jordan Wilson [00:17:22]:
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 ChatGPT desktop app, and the ChatGPT mobile app. Having that AI integration with not just Siri, but Safari with photos, with notes, with Imessage. 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, a actually combination of on device AI processing and cloud processing. Is is, you know, not compromised, but if 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 2. So we should see how this affects their security if it does at all.

Jordan Wilson [00:18:35]:
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? So I think there that part could be a delicate balance. And we've seen how, you know, 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 internal antenna band and then it didn't have service. Right? So it it should be interesting on how this all rolls out. But what I think is probably going to be their best feature out of the gate is this smart recap, is is what it's being called, which, allows you to summarize mixed, missed text messages, notifications, emails, web pages, etcetera. 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.

Jordan Wilson [00:19:51]:
So I think that could be, pretty big. Right? But, again, is that a groundbreaking feature? Absolutely not. Right? If you've been using Copilot from Microsoft, this is gonna seem like last year's news. But for so many people that aren't using, you know, 365 Copilot or Copilot Pro and haven't had this, this might seem like a novel 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.

Jordan Wilson [00:20:25]:
Sorry to anyone out there. Monica said here, listening on LinkedIn, and, I just triggered your, SIRI. Sorry about that. Didn't didn't mean to didn't mean

Jordan Wilson [00:20:36]:
to do that y'all. Alright. So here's here's the hot take. Nothing nothing that Apple

Jordan Wilson [00:20:45]:
is set to announce. 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 customers. Sure. But does that even matter anymore? Right? I think in this day and age, when so much of I think when we look at 2024 and 2025, it's gonna be predicated on how quickly you can go to scale, how quickly you can, integrate generative AI and large language models in your professional workflow.

Jordan Wilson [00:21:40]:
But a lot of times, that line bleeds between your professional life and your personal life. Right? So if Apple is is months or quarters or years behind, I don't know how much longer they are going to have a stranglehold on the market. Right? And there's there's another, another piece which isn't really, AI, but Apple has run into some issues, right, with its, you know, MMS or Imessage. 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? Sure.

Jordan Wilson [00:22:36]:
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 ChatGPT. Already available via Microsoft Copilot. Already available via Google. Right? As Google is starting to slowly roll out finally useful features in its Gemini product.

Jordan Wilson [00:23:10]:
I don't think we're seeing anything truly unique, y'all.

Jordan Wilson [00:23:13]:
And I think Apple is missing the mark again. Yeah.

Jordan Wilson [00:23:16]:
I say that again. We got the receipts, y'all. I told you I don't know how many months ago this was, probably, like, 6 months ago before Apple released the Vision Pro. Everyone, everyone, analysts, everyone was like, oh my gosh. This is gonna change the world, change the way we work. Apple Vision Pro, we're all gonna be walking around with $36100 headsets, and that's the future.

Jordan Wilson [00:23:40]:
And I said, that's silly. Go back and listen. I said, I literally had an episode,

Jordan Wilson [00:23:46]:
a hot take Tuesday, called Apple Vision Pro, the AI 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, you know, 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 gonna be one of the 5 biggest market cap companies in the US? Absolutely. I'm not saying that they're you're gonna lose 1,000,000,000,000 of dollars. I just think that they're going to be growing at a slower rate than their competitors.

Jordan Wilson [00:24:27]:
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 are going to be able to ride this wave of, oh, Apple's cool, Apple's sexy. Apple's this. Oh, cool. This. UI, UX.

Jordan Wilson [00:24:48]:
I don't know how long that's gonna last. Blue message bubbles. Right? Like like, what, like, what's Apple doing? Why, like, why have they been asleep at the wheel for years? Alright. But like I said, don't get me wrong. Analysts are gonna love this. You're gonna see book book market book market right now. Monday, presumably, we're gonna see this Apple OpenAI partnership announcement. Analysts are gonna love it.

Jordan Wilson [00:25:17]:
Their stock is gonna see a nice little bump. I'm not talking probably not like a 5% like we saw out of NVIDIA, you know, yesterday after their, announcement of the new Ruben chip at Computex. But, analysts are gonna love this. The journalists who don't know any better are gonna love this. Apple users The journalists who don't know any better are gonna love this. Apple users are gonna love this, and then it's gonna die down. And then in the coming, I think, weeks months, people are gonna start to realize that, hey. This is more

Jordan Wilson [00:25:44]:
marketing than bite. Alright? And I think

Jordan Wilson [00:25:51]:
at like, the the analysts y'all, I think the analysts slept. I think the collective business world slept on Microsoft's announcements at Microsoft build. I watched that and I'm like, woah. This is impressive. This is innovation. We're not seeing innovation out of Apple anymore like we were 10, 15, 20 years ago. 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.

Jordan Wilson [00:26:31]:
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 for years. Alright? So let's look at the competitive landscape real quick. Yeah. Kathleen Kathleen dropped a boom. I'm not I'm not taking it easy.

Jordan Wilson [00:26:57]:
I'm not taking it easy. Alright. So let's let's quickly look at the competitive landscape so

Jordan Wilson [00:27:02]:
you can see what I'm saying. Because here's the thing. Companies like Google, companies like Microsoft, they have less to lose. Apple has a lot to lose. They compete mainly in 2 spaces. Right? Yeah. Couple spaces. Right? But personal hardware.

Jordan Wilson [00:27:23]:
Right? That's it. Right? Computers, phones,

Jordan Wilson [00:27:28]:
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, at the first go, which I understand is maybe why they took a much more cautious approach, but I think it is too cautious. It's overly cautious. Right? So let's just look where Apple competes. Apple competes on the smartphone 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.

Jordan Wilson [00:28:04]:
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 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.

Jordan Wilson [00:28:22]:
We might see it, also rolling out at the same time on the desktop, or it might be in 2025 when we see that. But Apple is competing on the smartphone market, and Google and Samsung are ahead. The s 24 has had edge AI now for, I don't know, 7 months, something like that. Probably probably even longer.

Jordan Wilson [00:28:44]:
Alright? They're behind. They're behind in smartphones. Operating system. Right? On the iOS, Apple's competing versus Google. They're behind.

Jordan Wilson [00:28:57]:
Right? On the desktop, competing versus Microsoft, so far behind. That is one of the things. Microsoft with its reported 10,000,000,000 to $13,000,000,000 investment into OpenAI, reportedly has a 49% equity stake. Right? And we talked about this being reportedly a $1,000,000,000 plus deal. How hard of a pill must it have been for Apple to swallow knowing that this was ultimately a $1,000,000,000 plus deal with Microsoft or, sorry, with OpenAI, 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 ChatGPT into the operating system, into the iOS. Right? Similarly, right, if if they're running on the OS as well, running on the desktop operating system, Lose lose situation.

Jordan Wilson [00:30:04]:
Right? Because guess who benefits from all of this training data. Right? A Microsoft or sorry. A Apple OpenAI partnership makes Microsoft stronger. Microsoft has a 2 plus year head start. Right? They have countless amounts of data, iterations, improvements into their right? Microsoft Copilot runs on GPT 4 o. All this is going to make the GPT technology better, which ultimately makes Microsoft better. Apple is in a lose lose situation. They didn't finish their own model.

Jordan Wilson [00:30:44]:
You can't go with Google Gemini because it's a bad model. And now you are stuck with partnering with OpenAI, which actually makes one of your biggest competitors better, stronger, and richer.

Jordan Wilson [00:30:56]:
They're in a lose lose here, y'all. Even personal

Jordan Wilson [00:31:00]:
assistants. Right? This if I'm being honest, this might be the only one where see where Apple and Siri have a fighting chance. Right? There is no more Cortana, from Microsoft. So, you know, we're seeing this Copilot essentially get these GPT features. So maybe Apple will be able to compete with the the the Google Assistant. Right? So let's let's start wrapping this one up here. And sorry y'all if I if I missed any of your questions, but but let me know. I'm gonna I'm gonna go through later.

Jordan Wilson [00:31:33]:
You know, if you're joining us here on LinkedIn, I'm gonna go through and ask, or 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.

Jordan Wilson [00:31:44]:
I don't see that happening. But I don't. I'm I'm I mean, if if if I were sitting in that boardroom, I would

Jordan Wilson [00:31:52]:
be wanting to clear house with just about everyone else, if I'm being honest. This is a multiyear 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. Alright. So stick with me here. This is

Jordan Wilson [00:32:11]:
important. In the end, it's all about the money. You gotta look at the money. Alright? So over the past year let's just look at year. Alright? Apple's not doing too good, y'all. Apple's not doing too good.

Jordan Wilson [00:32:27]:
Alright? So let's look at Google. Over the past year, their stock is up 37%.

Jordan Wilson [00:32:34]:
Pretty good. Pretty good, Google slash alphabet. Microsoft,

Jordan Wilson [00:32:41]:
up 23%. And if for our livestream 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%. Let's look at Apple. 8%. But not just that, less than a month ago or about 1 month ago, Apple was actually down year over year, which is wild considering how well the market is doing here in the US in these magnificent sevens. You know, when we talk about Microsoft Meta and Google and Amazon.

Jordan Wilson [00:33:34]:
NVIDIA skyrocketing because of AI. Apple, up until this OpenAI partnership from reporting seemed to be official, they were down. They were down year over 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, nonexistent. So are we going to see a huge stock bump, you know, in in the coming weeks months 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.

Jordan Wilson [00:34:31]:
They, again, reportedly were spending 1,000,000 with an ass 1,000,000 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. 1 of the most cash strapped companies in the world couldn't get it right. They couldn't get it done soon enough. And y'all, as much as this pains me to say this as an Apple fan, I think it's too little too late. I don't think that they have an a competitive edge anymore. The future of business and even the future of how we run our personal lives, I think, is AI first.

Jordan Wilson [00:35:17]:
And Apple has been last in AI, so I think they'll just have

Jordan Wilson [00:35:23]:
to market their way to profits. I don't know. How how far are AI powered emojis going to take the Apple stock? Alright. That's it y'all. Hot take Tuesday, wrapping up. So, let's just do a very, very quick recap here. Alright? So nothing is official yet, but everything is pointing to we are going to see that official, announcement from Apple and OpenAI on June 10th, which is less than a week away. Here's what we are reportedly going to see from Project Gray Matter.

Jordan Wilson [00:36:04]:
We're gonna see the integration of Chat g p t into the operating system, a smarter Siri, AI powered Apple apps like Siri, Safari, Photos, Notes, Imessage, etcetera, a combination of on device and cloud processing, and a smart recap tool. We're probably, I think, gonna see a lot of mainly what we saw from OpenAI's demo day, their their spring events with GPT 4 0 and kind of this live Omni or Her, what a lot of people are saying. I think we're just gonna 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. I appreciate it.

Jordan Wilson [00:36:49]:
And I'd also appreciate it if you're listening on the podcast. Reach out. Say hi. We always leave, my 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.

Jordan Wilson [00:37:07]:
And if you're joining us live here, thank you for that support. As always, please tag a friend, share this. We spend hours keeping you all up to date on everything generative AI. So just taking a couple of seconds to share this with your network, click that repost button, email it to to your friends. We'd really appreciate it. So we'd appreciate that, and we'd also appreciate you seeing you back tomorrow for more everyday AI. Thanks y'all.

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