Apple is About to KILL Microsoft's OpenAI

apple is about to kill Microsoft's open Ai and they won't even need an AI model to do it now this Probably sounds crazy after all open air is the poster child for artificial intelligence and Microsoft invested 10 billion dollars in there but their plan is flawed for a few reasons at first open AI seems well positioned hundreds of millions of people use chat GPT and startups are scrambling to build on top of the powerful API but Apple has the biggest tech company in the world has been suspiciously quiet about the biggest technology shift maybe ever in May the company posted 28 new AI positions the machine learning and AI careers page on the Apple website says the work is innovative and the experience is Magic Tim Cook said we see enormous potential in this space to affect virtually everything we do they are one of the most secretive companies in the world but if we look closely it's pretty obvious what they are doing this is about to be multi-trillion dollar puzzle called the artificial intelligence industry has three main pieces and everyone thinks the game is about having a monopoly on one of them but one by one you'll see why Apple doesn't like to participate in any of it and instead score after the lifeline of AI to probably own all of it both open area and Google seemed on top of the ward in the early days but despite all the hype there was a ticking time bomb that threatened to derail their Ambitions from the very beginning the core technology of language models like gpt4 is the Transformer architecture that was introduced by Google in 2017. the technology is not a secret pretty much anyone who has access to enough Computing or equivalent money can replicated they still have to have a whole lot of AI scientists alongside incredible engineering to make it work but that doesn't seem to be a limiting factor having competition isn't exactly music to the Monopoly Seekers ears but even worse is when those competitors are all offering the same thing you are if you ask gpt4 or any of those other high top language models for an omelette recipe could you even tell which one is which they'll all give you a pretty decent recipe sure you can stay ahead of the competition for more complex questions but as these models grow fewer fewer questions will be considered complex for them until your model will be the same as everybody else's model although open airs core strategy is not building a consumer product it's providing intelligence for other businesses maybe if they could get companies to build applications on top of their API then they could leverage that later on as Apple did with iOS and Google with Android but unfortunately for them a language models API has a uniquely weak grip on its users if someone has an IOS app he's not only limited to iOS perhaps this should be illegal but he is also limited to the App Store you don't like the new rules of the marketplace you can throw your app out of the window but here's a language model API it's English in English out you can easily replace this API for any equally capable language model at any point startups that are building on open air today are not eternally dependent on this language model while open air is worried about the future and other giant company is facing an even harsher reality it might seem like Google and open air are in a very close fight for the number one spot in AI but they both have a bigger problem called open source especially after middle released the Llama models no matter how many times big companies have tried to stop it open source just spread like wildfire in fact there was an internal Leather by a researcher at Google titled we have no modes and neither does open AI the uncomfortable truth is we aren't positioned to win this arms race and neither is open AI simply put open source is lapping us their models are faster more customizable more private and pound-for-pound more capable they are running language models on a toaster just over a week after the release we have no secret sauce and on top of that method just released llama version 2. more capable models this time with an open source license meaning it can even be used for commercial purposes Apple doesn't like this mess Ruth has competition and a lot of uncertainty around the commercial value and the safety of your position in the market micros I wasn't that naive either the real value open AI for Microsoft law is not in retail products but in advancing a vitally important service for them if open AI is not obvious to beat the trillion dollar opportunity for Microsoft Azure in close cooperation with the elite team of AI scientists at open AIS the cloud is more than half of the entire Microsoft's Revenue at around 100 billion dollars the cloud industry is projected to be four times bigger by 2030. that's a multi-trillion dollar opportunity right there Azure is the second biggest cloud service in the world after AWS but Google has been strategically tailoring its Cloud platform towards machine learning applications with the help of deepmind although they are the smallest of the three big ones they are considered the best option for AI and machine learning applications which are destined to eat up a huge chunk of the cloud industry every AI software not only needs the cloud for training but they also need constant computation service for inference a very volatile usage that is just unreasonably expensive if you can't efficiently and dynamically adopt the resources with the help of the cloud software also cloud is Microsoft's safest pit because it has a very large barrier to entry and if people start building on top of their stack they are going to have a hard time moving somewhere else later down the line especially when you consider almost 80 percent of the Fortune 500 companies are Azure customers including the Apple itself but apple is not participating in the cloud either because they have an even bigger vision in mind that I started three years ago in November of 2020 with the introduction of the Apple silicon let me demonstrate it for you if I open Photoshop and I say give me a river here and some clouds and maybe a mountain this is a beta software look at this lighting a realism if I'm able to do all this just by asking why the hell do I need this hideously complicated dashboard and a mouse and a keyboard if my computer calls all the scenes automatically in Premiere Pro understands how to do lighting if I don't need to write a line of Code by hand if the device clearly understands what I'm saying and talks back to me natural voice if the machine is intelligent enough to interact with me like an employee that understands computers better than me then what they do wise that truly utilizes the power of AI would look like a device that feels like your own personal assistant understanding you perfectly and making complex computer tasks easy and natural we are only a few years away from this kind of seamless AI experience and that's what apple is competing for and it only makes sense when we look at the next piece business people call this the blue ocean for chip designers and manufacturers everything everyone we've mentioned so far is planning to do realize on this silicon competition here is virtually non-existent Nvidia is the king of design and then AMD exists too we could even argue the AI boom was more of a computation brute force with the incredible performance of Nvidia a100 gpus and Google tpus then it was a software or scientific leap as a result Nvidia blew up in valuation taking over meta and Tesla with over a trillion dollar valuation making them the sixth largest company in the world by market cap but there is also apple with the M series we could say apple is trying to enter this incredibly profitable safe and almost no competition Market with M chips but Apple doesn't sell chips to anyone then out of all the upper opportunities so far why is Apple so interested in designing their own chips there is a global Trend towards spending more time on a smaller and more convenient devices but there's just not enough flexibility on a device without a mouse and a keyboard apple is not fighting for the market share in any of those places because they are strategically filling the gaps to make the dream device possible all the chips in the M series come with a dedicated neural engine to run AI on the device out of all the shiny AI startups that Apple could easily afford who did they go after a little company called explore AI never heard of them well they specialize in something pretty important running AI stuff is smoothly on phones laptops and other consumer devices not the big powerful service companies like Google have but the gadgets in your pocket it might come just as a slower slope of adding more and more capabilities to iOS and iMac but it might come as a huge software update or an even entirely new device but it is coming and the device is the lifeline of AI more important than anything else Nvidia as the king and essentially one of the greatest beneficiaries of the AI Trend are the total revenue of 26 billion dollars with an impressive 17 billion dollars in profit in 2022. apple they got a 20 billion dollar check from Google just to keep them as the default search engine on Safari Apple has maneuvered itself into the perfect position who else has a laptop as powerful as a high-end desktop that doesn't even need a fan if anyone is going to rethink how people are going to interact with Computing again this time in the age of AI It's gotta beat them as much as Apple's AI strategy is impressive I think Apple's a strategy to persuade people to buy their products using sounds is the coolest thing I've ever researched about them if you are curious watch this next one

Channel: Pourya Kordi

Views: 8,073

Keywords: Apple AI, why is Apple not introducing any AI product, Apple vs microsoft AI, AI, AI news, artificial intelligence, chatgpt, ai, apple ai event

Id: MdkLXRD2g6U

Length: 8min 36sec (516 seconds)

Published: Sat Aug 05 2023