1 00:00:02,480 --> 00:00:07,880 Speaker 1: All Zone Media, Hello and welcome to better Offline, I'm 2 00:00:07,920 --> 00:00:20,279 Speaker 1: your host, and generally optimistic man ed Zeitron. What else? 3 00:00:22,960 --> 00:00:26,480 Speaker 1: Last week, Apple announced Apple Intelligence, the suite of features 4 00:00:26,520 --> 00:00:29,280 Speaker 1: coming to iosat and that's the next version of the 5 00:00:29,320 --> 00:00:33,320 Speaker 1: iPhone software, in a presentation that Fast Company called uninspired, 6 00:00:33,720 --> 00:00:38,720 Speaker 1: futurism called boring, and Axios claimed failed to excite investors. 7 00:00:39,040 --> 00:00:42,840 Speaker 1: They did not even check the stocktic anyway. The presentation 8 00:00:43,080 --> 00:00:46,320 Speaker 1: given at Apple's Worldwide Developers Conference, usually referred to as 9 00:00:46,400 --> 00:00:50,839 Speaker 1: WWDC and where Apple usually announces its next software updates, 10 00:00:51,120 --> 00:00:55,920 Speaker 1: felt remarkably demure in comparison to May's Google IO conference, 11 00:00:55,960 --> 00:00:59,600 Speaker 1: which is Google's equivalent, where CEO Sandhar Pashai and Head 12 00:00:59,600 --> 00:01:02,320 Speaker 1: of Search Liz Read hype the next generation of Google 13 00:01:02,320 --> 00:01:06,800 Speaker 1: products and search updates that absolutely nobody asked for. Historically, 14 00:01:06,840 --> 00:01:10,200 Speaker 1: what WHDe Developers Conference is where Apple announced major updates 15 00:01:10,200 --> 00:01:14,200 Speaker 1: to both its product and software lineups. A WWDC two 16 00:01:14,240 --> 00:01:17,120 Speaker 1: thousand and five, the late Steve Jobs announced the company 17 00:01:17,120 --> 00:01:21,320 Speaker 1: would move from IBM designed and Motorola manufactured power PC processors, 18 00:01:21,640 --> 00:01:24,400 Speaker 1: allowing for faster and more power efficient computers, as well 19 00:01:24,440 --> 00:01:27,600 Speaker 1: as the ability to duel boot Windows, a huge moment 20 00:01:27,640 --> 00:01:30,960 Speaker 1: for Max that was met with rancorous applause from people 21 00:01:30,959 --> 00:01:34,880 Speaker 1: that really should have known better. Fifteen years later, Tim Cook, 22 00:01:35,040 --> 00:01:39,399 Speaker 1: now CEO, would announce Apple's shift away from Intel stagnating 23 00:01:39,600 --> 00:01:44,200 Speaker 1: X eight six architecture to Apple's homegrown ARM based processes, 24 00:01:44,280 --> 00:01:46,840 Speaker 1: starting with the M series processes that have now become 25 00:01:46,959 --> 00:01:50,920 Speaker 1: ubiquitous across MAX and iPads, one which was met with 26 00:01:50,960 --> 00:01:54,080 Speaker 1: the bombastic promise that these were the most powerful chips 27 00:01:54,120 --> 00:01:57,680 Speaker 1: ever created. I should add, by the way, the M 28 00:01:57,800 --> 00:02:00,680 Speaker 1: series processes are actually probably one of the better things 29 00:02:00,720 --> 00:02:03,280 Speaker 1: that's come out in the last ten years. The average 30 00:02:03,320 --> 00:02:05,800 Speaker 1: MacBook Air is insanely fast now, like I have a 31 00:02:05,840 --> 00:02:08,799 Speaker 1: MacBook Pro. It's phenomenal. A lot of you say, I'm 32 00:02:08,840 --> 00:02:12,000 Speaker 1: not positive, Okay, these are things I like. Here are 33 00:02:12,040 --> 00:02:14,840 Speaker 1: things I like. Are you happy now? I am kind 34 00:02:14,840 --> 00:02:19,320 Speaker 1: of anyway. WWDC is where Apple has unveiled every new 35 00:02:19,480 --> 00:02:22,640 Speaker 1: version of the Mac operating System OSX. It's where the 36 00:02:22,680 --> 00:02:25,840 Speaker 1: original Mac Pro, FaceTime and the iPhone app Store were 37 00:02:25,840 --> 00:02:29,360 Speaker 1: introduced to the world. This is the conference where Apple 38 00:02:29,560 --> 00:02:32,960 Speaker 1: flexes its muscles and boasts about how powerful and important 39 00:02:33,000 --> 00:02:37,320 Speaker 1: Apple is. Now you can understand why this year was 40 00:02:37,440 --> 00:02:44,240 Speaker 1: just so strange. Gone was Apple's trademark bombast, It's propensity 41 00:02:44,320 --> 00:02:46,440 Speaker 1: to tell the world how good it was at everything 42 00:02:46,680 --> 00:02:50,600 Speaker 1: and how important its next big thing was. Instead, we 43 00:02:50,680 --> 00:02:53,680 Speaker 1: got this weird juxtaposition between we're putting AI on your 44 00:02:53,680 --> 00:02:56,120 Speaker 1: phone and it's totally fine. It's not big deal. You 45 00:02:56,160 --> 00:02:58,360 Speaker 1: shouldn't be scared at doors. It's not that big a deal. 46 00:02:58,400 --> 00:03:01,959 Speaker 1: Please don't be mad at us. Despite this ostensibly being 47 00:03:02,040 --> 00:03:06,239 Speaker 1: Apple's big artificial intelligence play, CEO Tim Cook and SVP 48 00:03:06,320 --> 00:03:10,280 Speaker 1: of Engineering Craig VEDERIGGI spend far more time explaining how 49 00:03:10,320 --> 00:03:13,800 Speaker 1: much they love privacy and shareish your data and would 50 00:03:13,800 --> 00:03:16,080 Speaker 1: never share it with anyone, and listen to all the 51 00:03:16,120 --> 00:03:21,000 Speaker 1: ways we're keeping it private, before casually sauntering into a 52 00:03:21,040 --> 00:03:25,080 Speaker 1: series of product updates that appear to actually use AI 53 00:03:25,320 --> 00:03:29,280 Speaker 1: for a purpose and kind of useful and hardly suggests 54 00:03:29,280 --> 00:03:32,480 Speaker 1: that Apple is intentionally trying to distance itself from the 55 00:03:32,560 --> 00:03:37,920 Speaker 1: AI hype train. And while it's integrating CHATGBT intoosaighteen, which 56 00:03:37,960 --> 00:03:41,119 Speaker 1: don't worry, I'll get to later, it's doing so an 57 00:03:41,240 --> 00:03:44,480 Speaker 1: arms length approach, with most of the day to DAAI 58 00:03:44,640 --> 00:03:47,800 Speaker 1: work done by the company's own models and actually on 59 00:03:47,840 --> 00:03:52,840 Speaker 1: your device these AI integrations, which arrive some time in 60 00:03:52,880 --> 00:03:55,640 Speaker 1: the fall to the iPhone fifteen Pro and iPhone fifteen 61 00:03:55,680 --> 00:03:59,400 Speaker 1: Promax that's autumn for my British readers and listeners, along 62 00:03:59,440 --> 00:04:02,280 Speaker 1: with iPad and MacBooks with M one or later chips. 63 00:04:03,440 --> 00:04:06,200 Speaker 1: They're fairly straightforward and don't do anything we haven't really 64 00:04:06,200 --> 00:04:09,120 Speaker 1: seen elsewhere, which is kind of the Apple game. Apple's 65 00:04:09,120 --> 00:04:11,840 Speaker 1: AI can generate transcripts of cause, but not before warning 66 00:04:11,840 --> 00:04:15,000 Speaker 1: participants that it's doing so, generate images through a tool 67 00:04:15,040 --> 00:04:18,240 Speaker 1: called image Playground, help write and rewrite emails kind of 68 00:04:18,240 --> 00:04:22,000 Speaker 1: like grammarly does, and perform distinct actions across multiple apps, 69 00:04:22,480 --> 00:04:25,240 Speaker 1: like adding slides to a presentation or opening a web 70 00:04:25,279 --> 00:04:28,160 Speaker 1: image with the photos app where you can edit it. 71 00:04:28,440 --> 00:04:31,320 Speaker 1: The last items a little bit fuzzy is it extends 72 00:04:31,360 --> 00:04:34,000 Speaker 1: to both Apple's own apps and other third party apps, 73 00:04:34,000 --> 00:04:36,840 Speaker 1: and the functionality itself is expected to roll out over 74 00:04:36,880 --> 00:04:39,800 Speaker 1: the coming year or so, and as ever, take any 75 00:04:39,839 --> 00:04:43,000 Speaker 1: promises made without a demo with a big grain of salt, 76 00:04:43,279 --> 00:04:45,400 Speaker 1: which I guess is just a regular grain of salt 77 00:04:45,400 --> 00:04:48,799 Speaker 1: when you think about it. Apple also says that Siri 78 00:04:48,920 --> 00:04:51,039 Speaker 1: will soon have an awareness of what's on your screen 79 00:04:51,040 --> 00:04:54,360 Speaker 1: and be able to respond appropriately. In one of their demos, 80 00:04:54,560 --> 00:04:56,719 Speaker 1: you're filling out a form that asks for your driver's 81 00:04:56,720 --> 00:04:59,520 Speaker 1: license number. Siri can then look through your photo library, 82 00:04:59,560 --> 00:05:02,200 Speaker 1: identify any pictures of your license, and grab the pertinent 83 00:05:02,160 --> 00:05:05,200 Speaker 1: information for you. Equal parts useful and creepy and also 84 00:05:05,279 --> 00:05:07,720 Speaker 1: I really do not recommend having a picture of your 85 00:05:08,000 --> 00:05:11,159 Speaker 1: driver's license saved on your phone. But thanks to the 86 00:05:11,200 --> 00:05:14,120 Speaker 1: power of artificial intelligence, you can now generate your own 87 00:05:14,160 --> 00:05:17,799 Speaker 1: custom emojis, a feature that screams, we have to fill 88 00:05:17,920 --> 00:05:21,320 Speaker 1: a few minutes of this goddamn presentation, But nevertheless they 89 00:05:21,360 --> 00:05:25,400 Speaker 1: were quite excited, more excited than the open Ai integration, which, 90 00:05:25,440 --> 00:05:27,840 Speaker 1: as I've said, I will get to you later as 91 00:05:27,839 --> 00:05:29,919 Speaker 1: it requires a bit of space for me to laugh. 92 00:05:31,200 --> 00:05:34,160 Speaker 1: Apple claims that many of these features run entirely on 93 00:05:34,200 --> 00:05:37,120 Speaker 1: your device, and those that don't use something called private 94 00:05:37,160 --> 00:05:40,800 Speaker 1: cloud compute, where Apple claims in a lengthy privacy statement 95 00:05:40,800 --> 00:05:43,640 Speaker 1: I'll link to that at no time will anyone ever 96 00:05:43,680 --> 00:05:46,440 Speaker 1: have any access to any of the data that's being 97 00:05:46,520 --> 00:05:50,839 Speaker 1: processed on their servers, even and I quote during active processing, 98 00:05:51,200 --> 00:05:54,960 Speaker 1: meaning when Apple's servers are handling the request. Apple has 99 00:05:55,040 --> 00:05:59,120 Speaker 1: also offered security researchers the opportunity to personally verify the 100 00:05:59,160 --> 00:06:03,039 Speaker 1: claims it's making, and in general the news it seems 101 00:06:03,080 --> 00:06:06,120 Speaker 1: to have been well received, though some, like Chief Privacy 102 00:06:06,160 --> 00:06:09,440 Speaker 1: Officer Steve Wilson of EXABEAM told Dark Reading, worry that 103 00:06:09,560 --> 00:06:13,160 Speaker 1: threats in generative AI are poorly understood and that despite 104 00:06:13,200 --> 00:06:17,080 Speaker 1: Apple's best efforts and no doubt heavy policing, some will 105 00:06:17,080 --> 00:06:21,240 Speaker 1: slip through the cracks. On some level, Wilson is being 106 00:06:21,279 --> 00:06:24,039 Speaker 1: a little alarmist, with his only criticism being that we 107 00:06:24,080 --> 00:06:27,279 Speaker 1: don't know everything about this thing generative AI, and thus 108 00:06:27,279 --> 00:06:30,839 Speaker 1: should be scared about what we don't know, which isn't wrong. 109 00:06:31,920 --> 00:06:34,440 Speaker 1: On the other hand, he's right in so far, and 110 00:06:34,560 --> 00:06:37,960 Speaker 1: that we are relatively early days into the mass scale 111 00:06:38,040 --> 00:06:42,120 Speaker 1: use of large language models like Apples, like GPT, like 112 00:06:42,160 --> 00:06:46,320 Speaker 1: anthropics Claude. Apple has chosen, albeit cautiously, to take the 113 00:06:46,400 --> 00:06:49,159 Speaker 1: risk of integrating these models into devices at a time 114 00:06:49,200 --> 00:06:51,960 Speaker 1: when companies like Google and Meta have proven that one 115 00:06:51,960 --> 00:06:55,159 Speaker 1: cannot simply trust that a multi trillion dollar company will 116 00:06:55,160 --> 00:06:59,240 Speaker 1: maintain the stability and privacy of a product, or for 117 00:06:59,320 --> 00:07:03,200 Speaker 1: that matter, can guarantee the accuracy of its outputs. Also 118 00:07:03,279 --> 00:07:06,039 Speaker 1: really doesn't help that Apple CEO Tim Cook told The 119 00:07:06,120 --> 00:07:09,520 Speaker 1: Washington Post that Apple's AI is short of one hundred 120 00:07:09,560 --> 00:07:12,800 Speaker 1: percent when it comes to hallucinations, which, as a reminder, 121 00:07:13,000 --> 00:07:16,800 Speaker 1: are when these llms tell you something authoritatively that isn't true. 122 00:07:17,240 --> 00:07:19,760 Speaker 1: And this is a little bit worrying when we're talking 123 00:07:19,840 --> 00:07:23,440 Speaker 1: about an AI model that's taking actions across your apps. 124 00:07:25,320 --> 00:07:27,880 Speaker 1: These features are predominantly running on Apple's own models, like 125 00:07:27,920 --> 00:07:31,400 Speaker 1: I've said, so, not on GPT or claud or anything, which, 126 00:07:31,480 --> 00:07:35,040 Speaker 1: according to Apple, are trained using licensed data such as 127 00:07:35,120 --> 00:07:40,160 Speaker 1: images licensed from Shutterstock, data selected to enhance specific features. 128 00:07:40,440 --> 00:07:43,560 Speaker 1: No idea what this means, but it's from licensed data 129 00:07:43,600 --> 00:07:47,160 Speaker 1: at least, as well as publicly available data collected by 130 00:07:47,200 --> 00:07:51,000 Speaker 1: Apple's WebCrawler Applebot, which Apple allows publishers to alpt out 131 00:07:51,000 --> 00:07:53,840 Speaker 1: of using a rule added to their website's code, which 132 00:07:53,880 --> 00:07:56,000 Speaker 1: I should add, does not solve the bloody problem if 133 00:07:56,000 --> 00:07:58,760 Speaker 1: Apple has already used the data for training purposes, which 134 00:07:58,800 --> 00:08:02,240 Speaker 1: is bordering on impossible to confirm, I should add, I 135 00:08:02,320 --> 00:08:05,040 Speaker 1: have added this code to my website. You're not getting 136 00:08:05,080 --> 00:08:09,880 Speaker 1: my blogs, mister Cook. And the thing is, if Apple 137 00:08:09,920 --> 00:08:13,760 Speaker 1: already has done this, if they've already scraped this stuff, 138 00:08:13,800 --> 00:08:17,040 Speaker 1: if they've used publicly available, which could mean any website 139 00:08:17,080 --> 00:08:21,320 Speaker 1: on Google, for example. It's indicative of some really shady, shitty, 140 00:08:21,400 --> 00:08:25,560 Speaker 1: underhanded behavior. Well, it's fair to say that Applebot the webscraper, 141 00:08:25,680 --> 00:08:28,120 Speaker 1: isn't you. It arrived at some point in twenty fifteen, 142 00:08:28,440 --> 00:08:31,200 Speaker 1: it wasn't really publicized that much, save for a few 143 00:08:31,280 --> 00:08:34,480 Speaker 1: posts on Apple rumor sites speculating that the company was 144 00:08:34,520 --> 00:08:38,440 Speaker 1: working on a replacement to Google Search, which by the way, 145 00:08:38,520 --> 00:08:41,400 Speaker 1: had never happened because Google pays over ten billion dollars 146 00:08:41,440 --> 00:08:45,280 Speaker 1: a year to Apple for that monopoly Jesus Christ. Prior 147 00:08:45,280 --> 00:08:48,440 Speaker 1: to the launch of Apple's generative AI features, Applebot's sole 148 00:08:48,559 --> 00:08:51,280 Speaker 1: stated purpose was to provide data for Siri and Searchlight, 149 00:08:51,320 --> 00:08:54,120 Speaker 1: the search built into Mac OSX that scours both the 150 00:08:54,200 --> 00:08:56,760 Speaker 1: user's hard drive so that it can pull data out 151 00:08:56,840 --> 00:08:58,679 Speaker 1: so say you're looking for a file, or it can 152 00:08:58,679 --> 00:09:01,360 Speaker 1: search for something on the Internet. Generally a useful feature, 153 00:09:01,559 --> 00:09:06,720 Speaker 1: but an entirely different one to a generative AI one. 154 00:09:06,760 --> 00:09:09,840 Speaker 1: If Apple is already training its models on data scraped 155 00:09:09,840 --> 00:09:13,960 Speaker 1: by Applebot, it will be immensely deceptive, using a tool 156 00:09:14,280 --> 00:09:18,439 Speaker 1: way beyond its intended purpose, or at least its advertised one. 157 00:09:18,480 --> 00:09:20,800 Speaker 1: If this came to pass, those unwilling to have their 158 00:09:20,840 --> 00:09:23,880 Speaker 1: content repurpose this training data for a trillion dollar take 159 00:09:23,960 --> 00:09:26,800 Speaker 1: company would really have nowhere to go. What are you 160 00:09:26,800 --> 00:09:29,640 Speaker 1: going to do? Getting an AI to unlearn something isn't 161 00:09:29,760 --> 00:09:32,839 Speaker 1: exactly straightforward, and Apple has yet to explain how that 162 00:09:32,920 --> 00:09:35,880 Speaker 1: might work. I've reached out to Apple for comment here, 163 00:09:35,920 --> 00:09:39,000 Speaker 1: but it's unclear exactly how it intends to fulfill this 164 00:09:39,120 --> 00:09:41,720 Speaker 1: promise that you can opt out of being included in 165 00:09:41,760 --> 00:09:45,160 Speaker 1: their training data, especially if the applebot crawler has already 166 00:09:45,160 --> 00:09:48,319 Speaker 1: allowed said data to be fed into the model. If 167 00:09:48,360 --> 00:09:50,320 Speaker 1: I hear back, it'll be a little bit of a 168 00:09:50,360 --> 00:09:52,640 Speaker 1: pain in the ass, but I will update that here. 169 00:09:53,120 --> 00:09:56,079 Speaker 1: And because I love you all, I love you all 170 00:09:56,120 --> 00:10:09,439 Speaker 1: so much. Though Apple has done a better job than most, 171 00:10:09,520 --> 00:10:15,480 Speaker 1: it's gross. It's disgusting, especially for the generally the best 172 00:10:15,520 --> 00:10:18,000 Speaker 1: of the big tech companies to do the thing that 173 00:10:18,040 --> 00:10:21,120 Speaker 1: all these people have done. It's disgraceful that, yeah, another 174 00:10:21,200 --> 00:10:23,960 Speaker 1: big tech company has seen the open Internet as its 175 00:10:23,960 --> 00:10:29,000 Speaker 1: personal property, despite publishing a remarkable amount of information about 176 00:10:29,000 --> 00:10:31,640 Speaker 1: their privacy standards and how their models are trained. Apple 177 00:10:31,800 --> 00:10:35,080 Speaker 1: likely hopes that this privacy focused media blitz will hide 178 00:10:35,080 --> 00:10:38,079 Speaker 1: the fact that it's ripping off everybody's work, just like Google, 179 00:10:38,360 --> 00:10:42,280 Speaker 1: just like open ai, and just like Anthropic and Meta, 180 00:10:42,360 --> 00:10:44,199 Speaker 1: except it's doing so in a way that's a little 181 00:10:44,200 --> 00:10:46,160 Speaker 1: bit easier for the media to swallow, because the main 182 00:10:46,200 --> 00:10:49,480 Speaker 1: selling point of its AI is not vomiting out oodles 183 00:10:49,480 --> 00:10:53,280 Speaker 1: of anodyne business bullshare. Unless you're using the smart reply 184 00:10:53,400 --> 00:10:56,800 Speaker 1: feature in mail, which drafts a response to an email 185 00:10:57,640 --> 00:11:00,400 Speaker 1: for you. I'm just I really don't understand people need that. 186 00:11:00,440 --> 00:11:03,120 Speaker 1: I'm sorry if you can't email someone back with your 187 00:11:03,120 --> 00:11:07,720 Speaker 1: brain words, what's going on? Seriously, what's going on? But 188 00:11:07,840 --> 00:11:12,920 Speaker 1: it sucks, though, It really sucks even for the smallest 189 00:11:12,960 --> 00:11:16,760 Speaker 1: feature to have to steal people's work, especially when you 190 00:11:16,840 --> 00:11:20,880 Speaker 1: have what two hundred billion dollars in the bank. Just 191 00:11:20,920 --> 00:11:24,200 Speaker 1: a complete mark of disrespect against anyone who isn't an 192 00:11:24,200 --> 00:11:26,760 Speaker 1: Apple user, and plenty of people who are. This is 193 00:11:26,800 --> 00:11:30,360 Speaker 1: particularly worrying when you consider Apple's image generation features, which 194 00:11:30,400 --> 00:11:33,760 Speaker 1: will function similarly to chat GPT and stable diffusion and yes, 195 00:11:33,800 --> 00:11:36,840 Speaker 1: I'm getting to chat GPT. Well, I'd love to believe 196 00:11:36,880 --> 00:11:39,960 Speaker 1: that Apple has only used licensed content to train its models. 197 00:11:40,280 --> 00:11:42,319 Speaker 1: It really isn't the case. And if their version of 198 00:11:42,360 --> 00:11:46,960 Speaker 1: publicly available includes things from Google or DeviantArt or social networks. 199 00:11:48,240 --> 00:11:51,360 Speaker 1: Apples just part the problem. They just part the pillaging 200 00:11:51,400 --> 00:11:54,120 Speaker 1: of the Internet. They are stealing, just like all the 201 00:11:54,160 --> 00:11:58,040 Speaker 1: other big tech companies, and there's just this is a 202 00:11:58,080 --> 00:12:00,760 Speaker 1: time when I feel a little helpless forever. I don't 203 00:12:00,760 --> 00:12:03,880 Speaker 1: know what you do here, and I don't think we're 204 00:12:03,920 --> 00:12:06,640 Speaker 1: going to hear anything back from them. But as I mentioned, 205 00:12:06,720 --> 00:12:09,040 Speaker 1: I've requested comment from Apple about this, and I hope 206 00:12:09,080 --> 00:12:13,400 Speaker 1: that I get an answer. Apple's approach to PR doesn't 207 00:12:13,400 --> 00:12:16,120 Speaker 1: film me full of hope, though. It's almost as contemptuous 208 00:12:16,120 --> 00:12:19,440 Speaker 1: as testless. They only really provide comment and interviews or 209 00:12:19,440 --> 00:12:23,240 Speaker 1: review samples that those journalists they've deemed worthy, and only 210 00:12:23,280 --> 00:12:25,800 Speaker 1: really on certain subjects. It's a style that mirrors the 211 00:12:25,840 --> 00:12:28,679 Speaker 1: kind of haughty, snooty image it crafted in the mid 212 00:12:28,720 --> 00:12:32,560 Speaker 1: two thousands with those goddamn I'm a mac ads, with 213 00:12:32,720 --> 00:12:36,560 Speaker 1: reporters divided into worthy and unworthy camps, meaning, by the way, 214 00:12:37,280 --> 00:12:40,240 Speaker 1: those who would bend the knee to mister Jobs and 215 00:12:40,280 --> 00:12:43,560 Speaker 1: his company and those who would not. And by the way, 216 00:12:44,280 --> 00:12:49,200 Speaker 1: there weren't many who wouldn't. But okay, if you can 217 00:12:49,240 --> 00:12:53,200 Speaker 1: put these very real concerns aside, Apple's AI announcement feels 218 00:12:54,400 --> 00:12:58,680 Speaker 1: equal parts useful and extremely strange. These are not world 219 00:12:58,800 --> 00:13:02,800 Speaker 1: changing integrations. They're useful ones transcriptions, a better SII that 220 00:13:02,960 --> 00:13:05,319 Speaker 1: works like it's meant to, that can take actions across 221 00:13:05,400 --> 00:13:07,280 Speaker 1: multiple apps and know what you're talking about based on 222 00:13:07,320 --> 00:13:10,280 Speaker 1: what you're doing on the screen theoretically at least, a 223 00:13:10,320 --> 00:13:13,720 Speaker 1: better photos app with better search, which is already in 224 00:13:13,760 --> 00:13:16,240 Speaker 1: the product already, and the ability to edit photos with 225 00:13:16,600 --> 00:13:19,880 Speaker 1: AI and remove things and backgrounds. These are cool features. 226 00:13:19,960 --> 00:13:22,400 Speaker 1: These are the kind of things that Google would staple 227 00:13:22,480 --> 00:13:24,439 Speaker 1: onto a pixel phone to pretend you're going to buy 228 00:13:24,440 --> 00:13:26,880 Speaker 1: one instead of an iPhone. And these are all things 229 00:13:26,920 --> 00:13:28,920 Speaker 1: that a user could foreseeably want to use in their 230 00:13:29,000 --> 00:13:31,960 Speaker 1: daily lives without being told that they're in the future, 231 00:13:32,240 --> 00:13:35,320 Speaker 1: in large part because they are not. In fact, I'd 232 00:13:35,440 --> 00:13:38,720 Speaker 1: argue that Apple's biggest generative AI push is in trying 233 00:13:38,760 --> 00:13:41,600 Speaker 1: to sell us back the idea that Siri can actually 234 00:13:41,600 --> 00:13:45,679 Speaker 1: do stuff, years after most users accepted that it was 235 00:13:45,800 --> 00:13:48,800 Speaker 1: kind of a voice controlled roulette wheel that occasionally understood you, 236 00:13:49,240 --> 00:13:53,880 Speaker 1: and for my Scottish, British and other people with accent friends, 237 00:13:54,480 --> 00:13:59,000 Speaker 1: that's very occasionally. What's weird, though, is my Apple TV 238 00:13:59,040 --> 00:14:01,440 Speaker 1: remote can understand me every time I say like the 239 00:14:01,440 --> 00:14:04,959 Speaker 1: Imaginarium of Doctor Parnassis, and it will pop up immediately. 240 00:14:05,000 --> 00:14:07,960 Speaker 1: But I tell my phone, hey, can you play this 241 00:14:08,080 --> 00:14:11,000 Speaker 1: song on this home pod? And it just freaks out. 242 00:14:11,320 --> 00:14:17,000 Speaker 1: It has a complete conniption. It's so strange. Nevertheless, putting 243 00:14:17,080 --> 00:14:20,640 Speaker 1: all my jokes aside, looking at everything here, I just 244 00:14:20,720 --> 00:14:26,440 Speaker 1: can't get over how reserved Apple is being about artificial intelligence. Well, 245 00:14:26,480 --> 00:14:30,040 Speaker 1: Google has desperately tried and completely failed to convince Wall 246 00:14:30,080 --> 00:14:32,880 Speaker 1: Street that it's building and selling the future by putting 247 00:14:32,960 --> 00:14:36,640 Speaker 1: generative AI into search and making it worse. Apple's almost 248 00:14:36,680 --> 00:14:39,640 Speaker 1: desperate to explain how boring and normal your iPhone and 249 00:14:39,640 --> 00:14:42,360 Speaker 1: Matt could be, and how Apple intelligence is just another 250 00:14:42,440 --> 00:14:45,200 Speaker 1: feature that will make you want to keep using Apple products, 251 00:14:45,280 --> 00:14:48,040 Speaker 1: rather than the reason that Apple should be worth forty 252 00:14:48,400 --> 00:14:53,440 Speaker 1: trillion dollars and keep growing forever. I like how wireds 253 00:14:53,440 --> 00:14:55,520 Speaker 1: Will Knight put it. He said that AI is a 254 00:14:55,560 --> 00:14:59,360 Speaker 1: feature rather than the product. And this is what's really 255 00:14:59,360 --> 00:15:02,080 Speaker 1: interesting about this. Apple really doesn't feel like they're selling 256 00:15:02,200 --> 00:15:05,120 Speaker 1: us the future. They feel like they're selling us the present. 257 00:15:05,680 --> 00:15:08,520 Speaker 1: And maybe that's a good thing. Maybe it's good that 258 00:15:08,560 --> 00:15:12,000 Speaker 1: Apple isn't rushing, but also the fact that Apple isn't 259 00:15:12,080 --> 00:15:16,440 Speaker 1: rushing kind of says something about the wider AI movement. 260 00:15:17,280 --> 00:15:21,520 Speaker 1: It suggests that outside of what they're offering, they don't 261 00:15:21,560 --> 00:15:25,120 Speaker 1: really see much value to it. And now we reach 262 00:15:25,200 --> 00:15:28,320 Speaker 1: the funny part. Quietly stapled onto the end of the 263 00:15:28,360 --> 00:15:31,800 Speaker 1: announcement of Apple Intelligence was integration of open AI's chat 264 00:15:31,840 --> 00:15:35,880 Speaker 1: GPT in arguably the vaguest least consequential way that I've 265 00:15:35,920 --> 00:15:39,240 Speaker 1: ever seen a product launch. After spending an hour and 266 00:15:39,240 --> 00:15:42,440 Speaker 1: a half, actually more so talking about how great its 267 00:15:42,440 --> 00:15:46,400 Speaker 1: own AI features were, Craig Federighi mentioned that and I quote, 268 00:15:46,560 --> 00:15:49,400 Speaker 1: there are other artificial intelligence tools available that can be 269 00:15:49,480 --> 00:15:52,840 Speaker 1: useful for tasks that draw on board world knowledge or 270 00:15:52,840 --> 00:15:58,600 Speaker 1: offer specialized domain expertise just fuck just completely stupid anyway, 271 00:15:58,960 --> 00:16:01,480 Speaker 1: saying that Apple wanted users to be able to and 272 00:16:01,520 --> 00:16:04,760 Speaker 1: again I quote, use these external models without having to 273 00:16:04,840 --> 00:16:08,720 Speaker 1: jump between different tools, integrating them directly into Apple's OS. 274 00:16:09,400 --> 00:16:13,600 Speaker 1: Starting with the pioneer and market leader, open Ai. Apple's 275 00:16:13,600 --> 00:16:16,760 Speaker 1: integration with open ai, the supposed big dog, the big 276 00:16:16,800 --> 00:16:19,720 Speaker 1: swinging dick of the tech industry, in the biggest announcement 277 00:16:19,760 --> 00:16:22,920 Speaker 1: for the company in years, was explicitly advertised as the 278 00:16:22,920 --> 00:16:25,760 Speaker 1: first of multiple integrations with multiple models, and not even 279 00:16:25,800 --> 00:16:27,680 Speaker 1: kidding literally that was the end of the announcement. It's 280 00:16:27,760 --> 00:16:31,400 Speaker 1: very funny. And even then, chat GPT's integration with Siri 281 00:16:31,480 --> 00:16:34,760 Speaker 1: is entirely opt in, with certain requests that they were 282 00:16:34,880 --> 00:16:39,000 Speaker 1: very unspecific about, occasionally prompting Apple to ask you if 283 00:16:39,080 --> 00:16:41,720 Speaker 1: you'd like to run them through chat gpt, like I 284 00:16:41,800 --> 00:16:44,320 Speaker 1: have these ingredients, what meal can I make? And other 285 00:16:44,400 --> 00:16:48,520 Speaker 1: questions that tens, maybe even hundreds of people will find useful. 286 00:16:48,800 --> 00:16:51,320 Speaker 1: Or having chat gpt write a bedtime story for your 287 00:16:51,400 --> 00:16:54,360 Speaker 1: kid if for some reason you lack books or creativity, 288 00:16:55,160 --> 00:16:57,480 Speaker 1: or you feed into this weird thing with AI people 289 00:16:57,520 --> 00:17:00,160 Speaker 1: where they think everything has to be about you and 290 00:17:00,200 --> 00:17:02,280 Speaker 1: that you must be the star of every story. That's 291 00:17:02,320 --> 00:17:06,080 Speaker 1: a separate podcast ed put it away. Chat gpt can 292 00:17:06,119 --> 00:17:09,960 Speaker 1: also generate images and summarize documents, features already available in 293 00:17:09,960 --> 00:17:14,480 Speaker 1: Apple's own AI. This underwhelming addition to an already placid 294 00:17:14,480 --> 00:17:17,240 Speaker 1: announcement ends with Apple adding that it intends to add 295 00:17:17,240 --> 00:17:20,359 Speaker 1: support for other AI models in the future, before moving 296 00:17:20,400 --> 00:17:24,520 Speaker 1: on to how developers can integrate Apple's own AI. The 297 00:17:24,560 --> 00:17:28,040 Speaker 1: deal that would supposedly cement Sam Mortman's hold on Silicon 298 00:17:28,119 --> 00:17:30,680 Speaker 1: Valley and Open Ai ended up being a two minute 299 00:17:30,720 --> 00:17:32,880 Speaker 1: long sidebar at the end of a near two hour 300 00:17:32,920 --> 00:17:36,720 Speaker 1: long announcement, one that requires users to agree every single 301 00:17:37,000 --> 00:17:40,160 Speaker 1: time they interact with it, with no specifics about how 302 00:17:40,240 --> 00:17:44,680 Speaker 1: often that a user would actually see chat GPT. Despite 303 00:17:44,840 --> 00:17:50,600 Speaker 1: the insane romanticization of Sam Wrtman's incredible technology, Apple's approaches 304 00:17:50,640 --> 00:17:52,879 Speaker 1: one that begins and ends with them saying do you 305 00:17:53,080 --> 00:17:55,879 Speaker 1: really want to use this? And a remarkable lack of 306 00:17:55,920 --> 00:18:01,000 Speaker 1: excitement or trust While it remains to be seen exactly 307 00:18:01,000 --> 00:18:03,520 Speaker 1: how often you'll be prompted to use it. Chat GPT's 308 00:18:03,560 --> 00:18:06,760 Speaker 1: addition to Apple products feels far more like something cooked 309 00:18:06,800 --> 00:18:09,640 Speaker 1: up to police Wall Street, and it worked, briefly, making 310 00:18:09,680 --> 00:18:13,119 Speaker 1: Apple the most valuable US company, beating Microsoft just for 311 00:18:13,160 --> 00:18:15,680 Speaker 1: a minute, or without having to invest billions of dollars 312 00:18:15,720 --> 00:18:21,240 Speaker 1: into another company. Now, quick side note, there's undoubtedly here 313 00:18:21,359 --> 00:18:25,720 Speaker 1: a level of cya covering one's ass here. If Apple could, 314 00:18:25,800 --> 00:18:29,560 Speaker 1: it would undoubtedly monopolize AI on the iPhone, much like 315 00:18:29,600 --> 00:18:32,720 Speaker 1: it has without distribution and browser rendering engines. That's the 316 00:18:32,720 --> 00:18:35,879 Speaker 1: bit of the web browser that turns HTMLCSS and JavaScript 317 00:18:35,920 --> 00:18:39,040 Speaker 1: into a web page. From the beginning, Apple has saw 318 00:18:39,119 --> 00:18:42,520 Speaker 1: absolute control of the iOS and its derivatives ipied os, 319 00:18:42,560 --> 00:18:46,520 Speaker 1: tvOS and watch os ecosystems, using user safety as a 320 00:18:46,560 --> 00:18:52,720 Speaker 1: justification for well, they're kind of benevolent dictatorship. The problem 321 00:18:52,800 --> 00:18:56,240 Speaker 1: is the line between protecting users and anti competitive behavior 322 00:18:56,280 --> 00:18:59,840 Speaker 1: is thin, and indeed, regulators, particularly those in the European Commission, 323 00:19:00,160 --> 00:19:03,439 Speaker 1: aren't convinced that Apple's iinclad control of the iPhone is 324 00:19:03,560 --> 00:19:07,280 Speaker 1: entirely altruistic. And that's why you can access alternative app 325 00:19:07,280 --> 00:19:10,479 Speaker 1: stores in the European Union and even install apps directly 326 00:19:10,520 --> 00:19:13,080 Speaker 1: from the web. And it's why you're no longer tied 327 00:19:13,119 --> 00:19:15,960 Speaker 1: into using the Safari WebKit rendering engine, even if you 328 00:19:16,000 --> 00:19:20,560 Speaker 1: install an alternative browser like Brave or Safari or Firefox. Indeed, 329 00:19:21,080 --> 00:19:24,399 Speaker 1: if Apple iced out open AI or Anthropic, they both 330 00:19:24,440 --> 00:19:27,560 Speaker 1: could conceivably complain about Apple to the European Commission, who 331 00:19:27,640 --> 00:19:29,600 Speaker 1: might rule in favor of them and order Apple to 332 00:19:29,640 --> 00:19:33,080 Speaker 1: start supporting their models, in addition to levying a huge 333 00:19:33,160 --> 00:19:36,440 Speaker 1: multi billion dollar EUROFIE. And so Apple chose to save 334 00:19:36,480 --> 00:19:39,760 Speaker 1: itself the hassle and the cost and buried open Ai 335 00:19:39,880 --> 00:19:54,080 Speaker 1: and the rest of them in the back. One might 336 00:19:54,160 --> 00:19:57,600 Speaker 1: imagine though, putting aside by cynicism, this is still a 337 00:19:57,640 --> 00:20:02,800 Speaker 1: big deal, right, Wow, Chat GPT on every iPhone, well, 338 00:20:03,359 --> 00:20:07,240 Speaker 1: iPhone fifteen pro and so on. That's millions, hundreds of 339 00:20:07,240 --> 00:20:09,800 Speaker 1: millions of people, tons of M one and M two 340 00:20:09,840 --> 00:20:12,639 Speaker 1: and M three mags. It's a huge deal. Each time 341 00:20:12,960 --> 00:20:17,359 Speaker 1: that someone interacts with chat gpt. Even though they're not profitable, 342 00:20:17,640 --> 00:20:21,640 Speaker 1: that's still a sliver of revenue. They're still paying chat gpt, right. 343 00:20:21,880 --> 00:20:25,400 Speaker 1: They're not just stapling this on, Sam Altman isn't doing 344 00:20:25,440 --> 00:20:30,280 Speaker 1: this for exposure? Is he? Yes? He is. This is 345 00:20:30,320 --> 00:20:32,840 Speaker 1: not a coup at all, at least not one for 346 00:20:32,920 --> 00:20:37,440 Speaker 1: open Ai. As reported by Bloomberg's Mark German, Apple didn't 347 00:20:37,440 --> 00:20:41,040 Speaker 1: give open Ai any money to integrate Chat gpt, paying 348 00:20:41,080 --> 00:20:44,320 Speaker 1: them in distribution. As I said, for a tool that 349 00:20:44,440 --> 00:20:48,960 Speaker 1: loses the money on literally every transaction, Apple doesn't appear 350 00:20:48,960 --> 00:20:53,200 Speaker 1: to be paying anything. German also reports that users will 351 00:20:53,200 --> 00:20:55,520 Speaker 1: be able to upgrade their chat GPT accounts to chat 352 00:20:55,520 --> 00:20:59,600 Speaker 1: gpt Plus through the integration. No idea, I'm sorry, it's 353 00:20:59,720 --> 00:21:03,879 Speaker 1: far you get more requests, I get, who cares? But 354 00:21:03,960 --> 00:21:07,080 Speaker 1: the important thing is that upgrading to chat gpt plus 355 00:21:07,200 --> 00:21:09,600 Speaker 1: will likely operate on the same terms as every other 356 00:21:09,640 --> 00:21:12,159 Speaker 1: digital good and iOS, meaning that open ai will be 357 00:21:12,200 --> 00:21:15,720 Speaker 1: paying thirty percent of that take to Apple unless the 358 00:21:15,840 --> 00:21:20,159 Speaker 1: user upgrades directly on chat GPT's website. This is not 359 00:21:20,280 --> 00:21:23,399 Speaker 1: good for this company, to be clear, In most cases, 360 00:21:23,440 --> 00:21:26,840 Speaker 1: companies integrating chat gpt pay them on a per thousand 361 00:21:26,920 --> 00:21:30,560 Speaker 1: token basis, meaning that open ai will, while unprofitable, still 362 00:21:30,600 --> 00:21:33,679 Speaker 1: generate revenue of some kind when people ask them stuff. 363 00:21:34,200 --> 00:21:36,920 Speaker 1: Yet Apple's deal doesn't appear to pay them at all, 364 00:21:37,920 --> 00:21:41,879 Speaker 1: meaning that every single time that someone uses chat gpt 365 00:21:42,240 --> 00:21:45,640 Speaker 1: on their iOS device, they will be bleeding money. The 366 00:21:45,640 --> 00:21:49,879 Speaker 1: more popular or it is, the more money it's going 367 00:21:49,920 --> 00:21:54,560 Speaker 1: to lose them. It's a terrible deal, folks. This deal 368 00:21:54,640 --> 00:21:58,359 Speaker 1: is equal parts perilous and hilarious. It's so funny, and 369 00:21:58,400 --> 00:22:01,359 Speaker 1: it's something that could genuinely end up hurting open Ai, 370 00:22:01,720 --> 00:22:05,080 Speaker 1: all while insulating Apple. In the event that this integration 371 00:22:05,240 --> 00:22:08,399 Speaker 1: actually sees adoption by Apples hundreds of millions of users, 372 00:22:08,520 --> 00:22:11,040 Speaker 1: It's going to cost open ai incredible amounts of money 373 00:22:11,040 --> 00:22:14,160 Speaker 1: thanks to the fact that generative AI is both compute 374 00:22:14,160 --> 00:22:18,359 Speaker 1: and energy intensive unlike any other piece of tech, especially 375 00:22:18,359 --> 00:22:20,800 Speaker 1: as I imagine most users will ask it the occasional 376 00:22:20,880 --> 00:22:23,240 Speaker 1: question and find no reason to opt into the twenty 377 00:22:23,240 --> 00:22:26,800 Speaker 1: dollars a month Chat GPT plus subscription. Why would you care? 378 00:22:27,200 --> 00:22:30,000 Speaker 1: What is the use of this? On some level, it 379 00:22:30,040 --> 00:22:34,480 Speaker 1: also shows a remarkable amount of disdain from Apple towards 380 00:22:34,560 --> 00:22:37,840 Speaker 1: open Ai. Most deals that hinge on the vast reach 381 00:22:37,880 --> 00:22:41,320 Speaker 1: of the iOS ecosystem involve some kind of exchange of money. 382 00:22:41,680 --> 00:22:45,560 Speaker 1: In twenty twenty two, Google paid roughly twenty billion dollars 383 00:22:45,640 --> 00:22:48,639 Speaker 1: to be the default search engine on iOS. And just 384 00:22:48,680 --> 00:22:52,240 Speaker 1: to be clear, that deal very clearly a mob style thing. 385 00:22:52,280 --> 00:22:54,280 Speaker 1: That's just Google saying, look it would be won't please 386 00:22:54,280 --> 00:22:56,040 Speaker 1: don't build a search and please don't please don't build 387 00:22:56,040 --> 00:22:58,320 Speaker 1: a search engine. Our search engine's really bad. Just slim me, 388 00:22:58,600 --> 00:23:02,400 Speaker 1: let me pay you man. Really gross stuff. But given 389 00:23:02,440 --> 00:23:04,639 Speaker 1: the cost of running chat GPT, and the fact a 390 00:23:05,000 --> 00:23:09,400 Speaker 1: large language model query is inherently more sophisticated and computationally 391 00:23:09,400 --> 00:23:12,920 Speaker 1: expensive than a simple search one, you'd expect the opposite 392 00:23:12,960 --> 00:23:15,320 Speaker 1: to be true. Right, the Apple would pay open ai 393 00:23:15,480 --> 00:23:20,080 Speaker 1: something to defray its costs, but no, no money's changed hands. 394 00:23:20,600 --> 00:23:23,400 Speaker 1: And if open ai makes a sale directly on the iPhone, 395 00:23:23,920 --> 00:23:26,640 Speaker 1: it'll undoubted least be subject to the same Apple text 396 00:23:26,640 --> 00:23:30,040 Speaker 1: as every other company. Like I said, this is possibly 397 00:23:30,080 --> 00:23:33,000 Speaker 1: one of the worst deals I've seen in my life. 398 00:23:33,080 --> 00:23:36,280 Speaker 1: It's a terrible deal, of folks. And I'd also speculate 399 00:23:36,320 --> 00:23:39,360 Speaker 1: that Apple likely requires some level of service level agreement 400 00:23:39,400 --> 00:23:42,960 Speaker 1: for its partners, meaning that open ai has to dedicate 401 00:23:43,040 --> 00:23:46,640 Speaker 1: resources to maintain up time for Apple devices using chat 402 00:23:46,640 --> 00:23:50,080 Speaker 1: GPT for free, which will in turn be incredibly expensive 403 00:23:50,119 --> 00:23:52,960 Speaker 1: to maintain, burning money with every query on a product 404 00:23:53,000 --> 00:23:56,199 Speaker 1: that Apple will only offer when Apple services can't do 405 00:23:56,280 --> 00:23:59,560 Speaker 1: the job, and if iOS eighteen doesn't bring the expected 406 00:23:59,640 --> 00:24:02,720 Speaker 1: users to chat GPT, those resources are just gonna kind 407 00:24:02,720 --> 00:24:05,800 Speaker 1: of sit there, unused, redundant, and they could be servicing 408 00:24:05,920 --> 00:24:09,840 Speaker 1: other deeply unprofitable demand. It might be hyperbolic to describe 409 00:24:09,880 --> 00:24:13,200 Speaker 1: this as text equivalent of the Versie tree, but only 410 00:24:13,240 --> 00:24:20,359 Speaker 1: a little bit. It's also just unbelievably funny. It's so funny. 411 00:24:20,440 --> 00:24:23,760 Speaker 1: You heard the last episodes. You heard people talking about 412 00:24:23,800 --> 00:24:26,480 Speaker 1: Sam Altman, like the art of the deal guy, the 413 00:24:26,520 --> 00:24:30,400 Speaker 1: deal master, the master of contracts, the guy who can 414 00:24:30,440 --> 00:24:34,000 Speaker 1: outthink us all, the mega genius, the mega nerd, the 415 00:24:34,119 --> 00:24:38,199 Speaker 1: ultimate deal maker who could split the valley asunder with 416 00:24:38,240 --> 00:24:42,640 Speaker 1: a wave of his hand. Sam Ortman is regularly described 417 00:24:42,640 --> 00:24:47,080 Speaker 1: as this tier one operator, this superior intellect, and yet 418 00:24:47,119 --> 00:24:49,760 Speaker 1: he has signed the worst tech deal I've seen other 419 00:24:49,840 --> 00:24:53,360 Speaker 1: than I think the one signed by Yahoo with being 420 00:24:53,760 --> 00:24:56,840 Speaker 1: from a few episodes back. It might actually be worse though, 421 00:24:56,880 --> 00:25:02,439 Speaker 1: because even then Yahoo got paid by Microsoft. Jesus Christ. 422 00:25:02,880 --> 00:25:06,880 Speaker 1: I think this also proves something else open ai. They 423 00:25:06,960 --> 00:25:11,120 Speaker 1: have no leverage, They don't have anything they can play with. 424 00:25:11,320 --> 00:25:13,280 Speaker 1: They don't have anything they can go to Apple and 425 00:25:13,320 --> 00:25:16,560 Speaker 1: say you need us, baby, No, they haven't got shit. 426 00:25:17,040 --> 00:25:20,520 Speaker 1: It's hilarious. Open ai has effectively agreed to give chat 427 00:25:20,560 --> 00:25:24,360 Speaker 1: GPT for free to hundreds of millions of people and 428 00:25:24,400 --> 00:25:28,480 Speaker 1: got absolutely nothing in return. And worse still in this 429 00:25:28,920 --> 00:25:33,320 Speaker 1: marvelous technological cocultry. According to Anissa Gardisi of The Information, 430 00:25:33,680 --> 00:25:36,520 Speaker 1: Apple is already working on cutting deals with both Google 431 00:25:36,560 --> 00:25:40,480 Speaker 1: and their Gemini LLM and Anthropics Claude to integrate them 432 00:25:40,600 --> 00:25:44,960 Speaker 1: into iOS, likely using open Aiy's dogshit deal to leverage 433 00:25:45,000 --> 00:25:49,679 Speaker 1: better terms. Allmand may have been at the Worldwide Developers Conference. 434 00:25:49,720 --> 00:25:52,359 Speaker 1: He was there, people taking pictures of him acting like 435 00:25:52,400 --> 00:25:55,000 Speaker 1: it was this big goddamn deal, but he didn't get 436 00:25:55,000 --> 00:25:57,320 Speaker 1: to speak, nor was he mentioned during any of Tim 437 00:25:57,400 --> 00:26:02,040 Speaker 1: Cook or Craig Federiggi's remarks, Apple treated chat GPT with 438 00:26:02,119 --> 00:26:04,959 Speaker 1: less excitement than a new suite of emojis, kind of 439 00:26:05,000 --> 00:26:08,159 Speaker 1: like an afterthought to a presentation that was deliberate and 440 00:26:08,280 --> 00:26:11,800 Speaker 1: intentional in its lack of froth or hype. A series 441 00:26:11,840 --> 00:26:14,919 Speaker 1: of fun, potentially exciting features, things you could play with 442 00:26:15,000 --> 00:26:18,040 Speaker 1: if you want it, all delivered with a continual promise 443 00:26:18,080 --> 00:26:21,919 Speaker 1: of privacy and reliability that tacitly accepted that the AI 444 00:26:22,119 --> 00:26:26,280 Speaker 1: hype train was moving a little too fast. And it's 445 00:26:26,280 --> 00:26:29,760 Speaker 1: a humiliating moment for the generative AI movement, especially so 446 00:26:29,880 --> 00:26:32,720 Speaker 1: for open Ai, a company that desperately needs good news 447 00:26:32,760 --> 00:26:35,359 Speaker 1: at a time when the world has become deeply suspicious 448 00:26:35,560 --> 00:26:39,280 Speaker 1: of its product and its CEO. Apple is, for better 449 00:26:39,359 --> 00:26:41,840 Speaker 1: or or worse, the gatekeeper to the technology used by 450 00:26:41,920 --> 00:26:44,639 Speaker 1: hundreds of millions of people, and Apple has decided that 451 00:26:44,760 --> 00:26:47,240 Speaker 1: chat GPT is a feature, not a product, and one 452 00:26:47,240 --> 00:26:50,480 Speaker 1: that isn't trustworthy or useful enough to run without a 453 00:26:50,600 --> 00:26:55,639 Speaker 1: user's permission or even pay for. This was, on some 454 00:26:55,920 --> 00:26:59,800 Speaker 1: level open AI's iPhone moment, though. This was the time 455 00:27:00,160 --> 00:27:02,800 Speaker 1: the world would see exactly how important the most important 456 00:27:02,840 --> 00:27:06,400 Speaker 1: tech company in the world thought the most important startup 457 00:27:06,440 --> 00:27:08,920 Speaker 1: in the world was and the answer was not particularly 458 00:27:09,000 --> 00:27:12,880 Speaker 1: important at all. Apple can and likely will dump chat 459 00:27:12,920 --> 00:27:16,320 Speaker 1: GPT at a moment's notice, replacing it with any number 460 00:27:16,359 --> 00:27:19,000 Speaker 1: of other large language models, or ripping the feature out 461 00:27:19,119 --> 00:27:21,439 Speaker 1: entirely thanks to the fact that it was introduced as 462 00:27:21,480 --> 00:27:23,119 Speaker 1: a feature at the end of another feature, at the 463 00:27:23,160 --> 00:27:27,119 Speaker 1: end of a presentation of better, more useful features. And 464 00:27:27,160 --> 00:27:29,679 Speaker 1: what's insane is all of this is done without you 465 00:27:29,720 --> 00:27:32,119 Speaker 1: creating an account. I know some of you might be 466 00:27:32,119 --> 00:27:34,320 Speaker 1: a little bit scared that chat gbt's in your phone. 467 00:27:34,400 --> 00:27:37,040 Speaker 1: It isn't. They don't get your queries, they don't save 468 00:27:37,119 --> 00:27:39,600 Speaker 1: anything about what you're doing on their Apple has raked 469 00:27:39,640 --> 00:27:42,119 Speaker 1: them over the coals, and you don't even need an 470 00:27:42,119 --> 00:27:44,720 Speaker 1: account to use it, which means that they're not even 471 00:27:44,720 --> 00:27:48,320 Speaker 1: increasing their users with this. Their queries are going up, 472 00:27:48,520 --> 00:27:51,119 Speaker 1: but they can't even get any vanity metrics out of this. 473 00:27:51,520 --> 00:27:55,439 Speaker 1: It's so unbelievably busted. It is one of the funniest 474 00:27:56,080 --> 00:28:00,280 Speaker 1: and worst deals I've ever seen. I think it also 475 00:28:00,359 --> 00:28:04,720 Speaker 1: shows that Sam Mortman doesn't have the juice. He really 476 00:28:04,800 --> 00:28:08,439 Speaker 1: hasn't been able to outside of kind of intimidating people 477 00:28:08,520 --> 00:28:11,480 Speaker 1: vaguely in the valley, really use his power that much. 478 00:28:12,040 --> 00:28:14,960 Speaker 1: Microsoft weighed in to get him back at open Ai 479 00:28:15,080 --> 00:28:17,160 Speaker 1: because it was good for Satchy Nadella, who had kind 480 00:28:17,160 --> 00:28:21,280 Speaker 1: of tied his fate to Sam's. And it's funny the 481 00:28:21,359 --> 00:28:23,960 Speaker 1: moment they step into the real world just doesn't seem 482 00:28:23,960 --> 00:28:27,159 Speaker 1: to scale that well. Where are the big deals for 483 00:28:27,240 --> 00:28:31,240 Speaker 1: open Ai? Where are the huge integrations? The Information reported 484 00:28:31,800 --> 00:28:34,640 Speaker 1: last week that open AI's annualized revenue, which by the way, 485 00:28:34,680 --> 00:28:36,520 Speaker 1: is just a fudged figure. It takes the months of 486 00:28:36,560 --> 00:28:39,560 Speaker 1: revenue so far and extrapolates from there. They say they're 487 00:28:39,600 --> 00:28:42,040 Speaker 1: annualized revenue is going to reach the billions in twenty 488 00:28:42,040 --> 00:28:45,840 Speaker 1: twenty four. Yet they're still so unprofitable. And even if 489 00:28:46,000 --> 00:28:49,000 Speaker 1: Apple had paid the money to integrate Chat GBT, it 490 00:28:49,040 --> 00:28:53,160 Speaker 1: would still lose money on every search. And it's so bad. 491 00:28:53,280 --> 00:28:56,480 Speaker 1: I'm not sure why no one else is saying this, 492 00:28:57,000 --> 00:28:59,280 Speaker 1: and maybe some are Nick Builton and Vanity Fair give 493 00:28:59,320 --> 00:29:03,200 Speaker 1: you cred there, classic dagnam lad. And the thing is 494 00:29:04,160 --> 00:29:06,200 Speaker 1: the few people saying it with me are also smart. 495 00:29:06,200 --> 00:29:09,760 Speaker 1: I don't know, but this is a crazy bad deal. 496 00:29:10,240 --> 00:29:13,000 Speaker 1: This is one the guarantee is that open ai will 497 00:29:13,040 --> 00:29:16,400 Speaker 1: bleed money every single time someone picks up if they 498 00:29:16,440 --> 00:29:20,960 Speaker 1: even use it. If they don't use it, that's still embarrassing. 499 00:29:21,560 --> 00:29:25,640 Speaker 1: It's still a deeply damaging thing for open Ai. Sam Altman, 500 00:29:26,240 --> 00:29:29,040 Speaker 1: despite being the Valley's golden boy, didn't get to go 501 00:29:29,080 --> 00:29:32,680 Speaker 1: on stage. They didn't even in this presentation mention what 502 00:29:32,800 --> 00:29:36,320 Speaker 1: chat gbt's premium features do, nor did they really make 503 00:29:36,400 --> 00:29:38,440 Speaker 1: much effort to explain why you should give a shit. 504 00:29:39,920 --> 00:29:43,000 Speaker 1: And I'm not trying to romanticize Apple. There are no great, 505 00:29:43,000 --> 00:29:46,200 Speaker 1: big tech companies all out my Apple devices. I'm looking 506 00:29:46,240 --> 00:29:49,640 Speaker 1: forward to some of these features. That is faint praise 507 00:29:49,800 --> 00:29:52,520 Speaker 1: for a tech industry that's lost its way. But I 508 00:29:52,600 --> 00:29:56,480 Speaker 1: will give them credit for tim cook cooking mister Altman, 509 00:29:56,680 --> 00:30:01,120 Speaker 1: because this is a great time for people who like 510 00:30:01,400 --> 00:30:04,440 Speaker 1: bad things happening to bad people. I know I shouldn't 511 00:30:04,440 --> 00:30:06,440 Speaker 1: be calling Sam Mormon a bad person. I mean, just 512 00:30:06,880 --> 00:30:10,240 Speaker 1: read the stuff about him, listen to the episode. But 513 00:30:10,400 --> 00:30:13,560 Speaker 1: look what happens when a little boy from the world 514 00:30:13,640 --> 00:30:16,959 Speaker 1: of startups tries and goes up against the ugly forces 515 00:30:16,960 --> 00:30:22,360 Speaker 1: of capitalism, the real scary monopolies. Apple won't accept another monopoly. 516 00:30:23,560 --> 00:30:27,560 Speaker 1: This is the empire, for better or for worse. It 517 00:30:27,680 --> 00:30:30,680 Speaker 1: is scary how much power Apple has. It is worth 518 00:30:30,720 --> 00:30:34,640 Speaker 1: considering whether you are feeling safe using AI on these devices. 519 00:30:35,000 --> 00:30:38,080 Speaker 1: What they've said suggests that, yeah, I would say you are, 520 00:30:38,520 --> 00:30:40,720 Speaker 1: but I think that's something you really should consider. And 521 00:30:40,760 --> 00:30:42,920 Speaker 1: in the episode links, I will provide all of the 522 00:30:42,920 --> 00:30:45,840 Speaker 1: documentation of everything I'm talking about here, because I want 523 00:30:45,920 --> 00:30:49,960 Speaker 1: you to genuinely know everything you can make an informed decision. 524 00:30:50,640 --> 00:30:53,520 Speaker 1: I will say I would be unsurprised if every single 525 00:30:53,560 --> 00:30:57,840 Speaker 1: other phone company doesn't do similar stuff. Samsung's already doing 526 00:30:57,880 --> 00:31:00,920 Speaker 1: AI stuff I haven't looked, but I amaguine Google is too. 527 00:31:01,880 --> 00:31:05,160 Speaker 1: Everyone's going to be doing this. I would trust Apple 528 00:31:05,200 --> 00:31:10,160 Speaker 1: above them, because ah they they apparently have clearly worked 529 00:31:10,200 --> 00:31:12,560 Speaker 1: out that what people actually want is for their phones 530 00:31:12,600 --> 00:31:15,480 Speaker 1: to work, and that they'll keep making money just by 531 00:31:15,480 --> 00:31:18,360 Speaker 1: making people happy. I'm not going to say they're super ethical. 532 00:31:19,160 --> 00:31:20,720 Speaker 1: They're better than most, and they say that with a 533 00:31:20,720 --> 00:31:23,880 Speaker 1: great deal of kind of annoyance because they don't really 534 00:31:23,880 --> 00:31:26,720 Speaker 1: want to blow smoke with them. But back to the 535 00:31:26,760 --> 00:31:32,000 Speaker 1: really fun part. This may be a genuinely dangerous thing 536 00:31:32,080 --> 00:31:35,080 Speaker 1: for open AI, and at the very least, it's deeply 537 00:31:35,400 --> 00:31:39,880 Speaker 1: horribly humiliating. Sam Altman might be able to walk into 538 00:31:39,960 --> 00:31:42,600 Speaker 1: any room in the valley and say insane things like 539 00:31:42,680 --> 00:31:46,400 Speaker 1: I need seven trillion dollars for new energy. I needed 540 00:31:46,440 --> 00:31:50,640 Speaker 1: one hundred billion dollar computer, mister Nadella, But when he 541 00:31:50,680 --> 00:31:55,240 Speaker 1: walks up to Tim Cook, there's nothing to really say. Oh, yeah, 542 00:31:55,280 --> 00:31:56,960 Speaker 1: we'll add this at the end so that Wall Street 543 00:31:56,960 --> 00:32:00,040 Speaker 1: feels happy, and that's all this is. This is so 544 00:32:00,120 --> 00:32:03,080 Speaker 1: idiots like Jim Kramer on CNBC can say, Wow, Apple's 545 00:32:03,120 --> 00:32:06,840 Speaker 1: god chat GPT in it and great, it doesn't matter, 546 00:32:06,880 --> 00:32:09,920 Speaker 1: it's buried, and I guarantee you you're gonna be able 547 00:32:09,960 --> 00:32:13,600 Speaker 1: to turn it on. Apple aren't the best. I don't 548 00:32:13,600 --> 00:32:15,440 Speaker 1: know who the best are. I don't know who the 549 00:32:15,480 --> 00:32:17,400 Speaker 1: most ethical are. I don't even know how you evalue 550 00:32:17,400 --> 00:32:29,200 Speaker 1: at that. You know what, Let Tim Cook thank you 551 00:32:29,200 --> 00:32:31,920 Speaker 1: for listening to Better Offline. The editor and composer of 552 00:32:31,960 --> 00:32:34,920 Speaker 1: the Better Offline theme song is Matasowski. You can check 553 00:32:34,960 --> 00:32:37,920 Speaker 1: out more of his music and audio projects at Matasowski 554 00:32:37,920 --> 00:32:41,480 Speaker 1: dot com, M A T T O S O W 555 00:32:41,760 --> 00:32:45,080 Speaker 1: s ki dot com. You can email me at easy 556 00:32:45,160 --> 00:32:47,800 Speaker 1: at Better Offline dot com, or visit Better offline dot 557 00:32:47,800 --> 00:32:50,440 Speaker 1: com to find more podcast links and of course my newsletter. 558 00:32:50,840 --> 00:32:53,320 Speaker 1: I also really recommend you go to chat dot Where's 559 00:32:53,360 --> 00:32:55,840 Speaker 1: Youreed dot at to visit the discord, and go to 560 00:32:55,880 --> 00:32:59,280 Speaker 1: our slash Better Offline to check out our reddit. Thank 561 00:32:59,280 --> 00:33:02,320 Speaker 1: you so much for the listening. Better Offline is a 562 00:33:02,320 --> 00:33:05,360 Speaker 1: production of cool Zone Media. For more from cool Zone Media, 563 00:33:05,560 --> 00:33:08,880 Speaker 1: visit our website coolzonmedia dot com, or check us out 564 00:33:08,920 --> 00:33:11,880 Speaker 1: on the iHeartRadio app, Apple Podcasts, or wherever you get 565 00:33:11,920 --> 00:33:12,640 Speaker 1: your podcasts.