Apple’s Worst Nightmare #apple #google #gemini

And the question around whether Apple is And the question around whether Apple is doing enough brings us to the Google doing enough brings us to the Google doing enough brings us to the Google Gemini piece of this story. A lot of Gemini piece of this story. A lot of Gemini piece of this story. A lot of people are going to treat this as people are going to treat this as people are going to treat this as humiliating for Apple. At some level, it humiliating for Apple. At some level, it humiliating for Apple. At some level, it is, right? Apple would obviously prefer is, right? Apple would obviously prefer is, right? Apple would obviously prefer the clean mythology, the clean story. the clean mythology, the clean story. the clean mythology, the clean story. Our hardware, our software, our chips, Our hardware, our software, our chips, Our hardware, our software, our chips, our models, our magic. Instead, the our models, our magic. Instead, the our models, our magic. Instead, the story is the next generation of Apple story is the next generation of Apple story is the next generation of Apple foundation models was built in foundation models was built in foundation models was built in collaboration with Google using Gemini collaboration with Google using Gemini collaboration with Google using Gemini family tech. That's significant, right? family tech. That's significant, right? family tech. That's significant, right? But the cheap take is not as strong as But the cheap take is not as strong as But the cheap take is not as strong as it sounds. The cheap take is Apple it sounds. The cheap take is Apple it sounds. The cheap take is Apple failed and had to use Google. I think failed and had to use Google. I think failed and had to use Google. I think the stronger take is Apple may not care the stronger take is Apple may not care the stronger take is Apple may not care who supplies raw model capability is who supplies raw model capability is who supplies raw model capability is commoditizing. Apple wants to own the commoditizing. Apple wants to own the commoditizing. Apple wants to own the layer the user touches. Who owns the layer the user touches. Who owns the layer the user touches. Who owns the device, the OS, the app platform, the device, the OS, the app platform, the device, the OS, the app platform, the permission prompts, the Siri surface? permission prompts, the Siri surface? permission prompts, the Siri surface? Apple wants to own that. So, yeah, Apple wants to own that. So, yeah, Apple wants to own that. So, yeah, they'll let Google provide the model they'll let Google provide the model they'll let Google provide the model capability. Nvidia can provide the capability. Nvidia can provide the capability. Nvidia can provide the private cloud infrastructure. Apple private cloud infrastructure. Apple private cloud infrastructure. Apple still wants to own the experience and still wants to own the experience and still wants to own the experience and they're betting they can. You can source they're betting they can. You can source they're betting they can. You can source model capability. You cannot easily model capability. You cannot easily model capability. You cannot easily source a billion devices, a mature source a billion devices, a mature source a billion devices, a mature operating system, a developer ecosystem, operating system, a developer ecosystem, operating system, a developer ecosystem, and the trust people have in the and the trust people have in the and the trust people have in the computer they carry around. Now, private computer they carry around. Now, private computer they carry around. Now, private cloud compute is where that argument cloud compute is where that argument cloud compute is where that argument gets a little bit more complex. Follow gets a little bit more complex. Follow gets a little bit more complex. Follow me, right? The super easy version is the me, right? The super easy version is the me, right? The super easy version is the Apple hardware thesis is local AI, Apple hardware thesis is local AI, Apple hardware thesis is local AI, inference moves off the cloud, it moves inference moves off the cloud, it moves inference moves off the cloud, it moves onto the device, you have Apple silicon onto the device, you have Apple silicon onto the device, you have Apple silicon with unified memory and neural engines, with unified memory and neural engines, with unified memory and neural engines, you have local models, it's all fixed you have local models, it's all fixed you have local models, it's all fixed cost. That is still a part of the story, cost. That is still a part of the story, cost. That is still a part of the story, but WWDC made it clear that the larger but WWDC made it clear that the larger but WWDC made it clear that the larger version of that story is really a device

version of that story is really a device version of that story is really a device plus private cloud.