Apple’s recent AI announcement has sparked a flurry of questions and concerns, particularly regarding the tech giant’s partnership with OpenAI. To get to the bottom of this complex issue, I spoke with influential tech analyst Ben Thompson, who shared his insights on the implications of Apple’s AI efforts.
Thompson believes that Apple is leveraging its position as a phone maker to make AI companies, like OpenAI, do the heavy lifting, while Apple reaps the benefits without incurring significant costs and risks. This strategic move allows Apple to sidestep the challenges associated with generative AI, such as hallucinations, and instead focus on providing thoughtful solutions that integrate seamlessly with its devices.
Thompson also highlights the importance of Apple’s position in the value chain, owning the interface where people conduct their lives, and its ability to solve problems that only it can solve. By partnering with OpenAI, Apple is essentially handing off the AI generation to them, making OpenAI responsible for any potential issues that may arise.
However, Thompson notes that there are risks involved, particularly execution risk, as Apple’s proposed solution of orchestrating different apps and data has yet to be proven. There is also the risk of Apple’s AI features not working as intended, which could lead to significant consequences.
Ultimately, Thompson believes that Apple’s AI efforts have the potential to drive device sales and increase average revenue per user. The success of this venture will depend on Apple’s ability to execute its vision effectively and navigate the complexities of AI development.
