OpenAI’s GPT-4o release 'could spell trouble' for Apple and Google, strategist says

open AI wrapping up a live stream conference earlier with Chief technology officer Mira moradi unveiling a flagship chatbot model called chat gp40 let's take a look okay so chat GPT this is what I ended up with how does this look it looks perfect you've solved it and x equals 1 nicely done how do you feel about solving linear equations now yeah honestly i' I'm not pretty confident I can solve a linear equations joining us now is Patrick Morehead founder CEO and chief analyst at more insights and strategy Patrick it's great to have you on set Josh it's great to be here usually I'm from you know in front of a uh uh computer screen but here we in the big Studio you in New York and we had to make it happen so let's get right to the news Patrick so open AI announces this new flagship model they say smarter faster first just give us your response to the news what you heard today Patrick and how you think it impact kind of the broader kind of competitive environment we find ourselves in yeah so first off timing is everything so tomorrow's Google's big Google IO conference they're the king of search they're the kings of advertising and this was clearly time to give Google Google advertisers uh something to think about obviously we have apple WWDC in a few weeks and yes it impacts them because they want to get out and Define what the quote unquote best intelligent agent or assistant experienced is and this brought together brings together voice it brings together uh images and videos and text in a very interesting and and humanlike interaction mode yep so what I continue to struggle with and I don't know if this changes the Paradigm okay so chat GPT comes out early you know late 22 early last year explodes in interest all of these Grand predictions about how it's going to change the world you and I are still sitting here in person my life hasn't changed at all as a result of this I know some people who use it as a tool fine in Corporate America they're integrating it to some degree but it's still kind of unclear like where where's the big deal where like where's the thing that's going to be this revolution that seems to have been promised yeah so technology is always slower to be adopted than we all think it's going to in Silicon Valley right it it it comes overnight but the reality is to hit typical consumers and even businesses uh come years after use but you have to show off the latest and gr is to get people excited it's kind of like the beginning of an investment bubble right let's get everybody excited let's show the capability we're going to hit the trough of disillusionment uh at some point but it's to get people uh uh tied in now when it comes to software and services we can use on our smartphones like jat chat GPT 40 uh it is a much faster F time to use than let's say building a new product like the rabbit that you you know stick on on your lapel that unfortunately bombed early but um I I think it's a good Testament to what we should expect to see from a Google an apple and even a Microsoft do you do you think Patrick though for big Tech investors who are listening right now how concerned should they be that users start using open a chat gbt more and more and rely less and less on big Tech voice assistant so it is a risk I don't think it's a midterm risk uh but if Apple and Google don't get in there and plug the hole or potentially for Apple's case align with open a it could spell trouble because if you look at the biggest applications that that just took took the World by storm like Facebook it was initially free Google search was free with no ads right so you weren't paying for it and this has the same type of risk if you get eyeballs and experiences coming in you could op uh open AI could monetize that multiple ways through a service payment through advertising through essentially sending you to another chatbot for a company that does make money a food services company on airlines that's how it could be monetized and that is a potential risk to both Google and apple and speaking about Apple there was also a report that apple is indeed going to be partnering with open AI for some version maybe of it's chap b or on the upcoming phone cycle do you think that that is going to happen do you believe that that is going to happen and then what are the implications not just for Apple but for Google in that case yeah so I put the odds at about 5050 that we'll we'll see the two come together there could have been some of the leaks that saw the Mac OS desktop app that was announced today and they took that to the next level but Apple does need help in in certain areas and there's two types of AI there's on device which would be on the iPhone and the iPad and the mac and then there' be the cloud-based service I believe if there's going to be any deal it would be cloud-based Services maybe a type of deal where Google pays Apple today 20 to30 billion dollar to get uh Google search as the default search on the iPhone maybe this is a deal like this or maybe a it's less of a payment but more of a quidd pro quo Apple has to have um very good on device AI or or or literally uh it's going to spell trouble for Apple because that's what it does it's all about on device it's not about the cloud Apple's biggest level of sophistication on the cloud is backups and streaming media and video which in in aggregate aren't that uh complex and if you recall back things like mobile me were just complete disasters I do believe that we will see a Siri relaunch at WWDC see uh and it will incorporate generative AI potentially some help from open Ai and again it's not just one model you're looking at probably 40 models that have to be addressed in between what's on the device and at the cloud to do different types of things and you hit on a point which I want to touch on Patrick because let's say apple and open AI get this deal done Tim Cook and Sam Alman they work it out the lawyers they sign the paperwork your point is you think it's possible that Sam Alman pays Cook's company because Alman thinks you know what yes I'll pay to get in front of these billion plus iPhones yeah this could be the long-term play for them right let's get people hooked on open Ai and chat GPT and that would pay dividends for years in a very similar way I mean open AI is losing a tremendous amount of money today a lot of money and uh they can either invest it into infrastructure advertising product or a potential deal to get on the most pervasive uh brand out there which is Apple I out of here on this Patrick a different headline reports that arm is going to develop AI chips the key word being chips there no one knows arm better than you um what do you how much credibility you give that report or you think it's bogus so creating actual products meaning you buy a chip from them I put very very low probability what I do put a high probability against is them getting into them licensing the intellectual property like they do uh to Apple like they do to Qualcomm like they do to AWS and Azure which enable other people to use their intellectual property to build AI accelerators for for phones for tablets for PCs and even in the data center I do think that will happen and quite frankly I think that's priced in might be priced into the stock already when you look at the multiples that that that it's trading at right now investors want to see more tangible AI goodness even they're the processor behind it and a lot of AI is done on a CPU they want to see specific AI IP Patrick we didn't plan it this way but you were the perfect guy to have today on set we maybe we did plan it I don't know thank you for coming my friend thanks for thanks Josh

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Length: 8min 17sec (497 seconds)

Published: Tue May 14 2024