Pete Huang

So as long as you translate an action in an app into a piece of code, Apple Intelligence will know how to use it.

So when you put all these things together, these three ingredients that come with Apple Intelligence allow you to say whatever it is that you want it to do.

It will understand your natural language, your intent behind your request.

It will pull up any information it needs to reference and it will then tap into your apps to do the things that you want.

Very, very soon, all you'll need to do is talk at your phone and it'll do everything else for you.

That is a real assistant.

So let's talk about who wins and who loses with Apple intelligence.

This obviously is a very, very big win for Apple.

Apple was always going to be one of the largest beneficiaries with this wave of AI.

And even though the integrations today feel a little light, they feel like a V1.

It's so clear to me that in just two to three years, we're going to see even more built out that turns our phones into personal AI systems.

It's the first time we're seeing Apple play in AI, and honestly, it's about time, and I'm really, really excited for the future.

As we saw before, Apple and OpenAI are partnering on this.

Now, the ChatGPT integration is not a very big part of yesterday's launch.

Basically, every time you talk to Siri, it will choose between two things.

Either it'll need to access stuff on your phone or your personal contacts, so it'll choose to talk to the AI models that live on your phone,

or it'll need a more advanced model to answer that question and therefore pass on your message to ChatGPT.

The trade-off is that the models on your phone are private, but less capable.

They're smaller and have to fit on your phone, which makes them dumber.

ChatGPT on the other hand is way more capable, but not private since it's too big to run your phone and therefore has to run on open AI servers instead.