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Apple's AI Strategy in a Nutshell

Jun 11, 2024 - nextword.substack.com
The article discusses Apple's AI strategy as revealed at the WWDC 2024. The author notes that Apple has demonstrated its prowess in AI, with the announcement of the best on-device model in the market and its own data center. Apple's AI workloads are divided into three categories: on-device, private cloud compute, and 3rd party model inference. The company's operating system decides whether to run AI locally or remotely. Apple's partnership with OpenAI allows users to use ChatGPT directly from Siri or certain iOS apps, but it is not a replacement for Siri.

The author believes that this AI strategy will accelerate Apple's revenues and strengthen its market positioning. The integration of AI features will boost sales of high-end Apple devices and increase Apple's leverage over app publishers. The author also notes that Apple's on-device model outperforms similar models from Microsoft and Google. The article concludes by predicting that voice input usage will explode due to Siri's agentic features, while individual apps may suffer from less discoverability and in-app monetization opportunities.

Key takeaways:

  • Apple's WWDC 2024 showcased the company's advanced AI strategy, including the announcement of the best on-device model in the market and its own data center for running Apple scale inference with its own chips.
  • Apple's AI workloads are classified into three categories: on-device, private cloud compute, and 3rd party model inference, with the OS deciding whether to run AI locally or remotely.
  • Apple's partnership with OpenAI allows users to use ChatGPT directly from Siri or certain iOS apps, but it is not a replacement for Siri.
  • Apple's AI advancements could potentially accelerate the company's revenues and strengthen its market positioning, while also impacting the discoverability and monetization opportunities for individual apps.
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