Pete Huang

Something like, find me all the pictures of my friend Beth needs your personal information on your phone, so it will run with the models on your phone.

But something like, what were the defining features of Christian architecture in the medieval West?

That doesn't need to access any sensitive information to answer the question, and plus it would benefit from a more powerful model, so it'll ask you if you want to use ChatGPT to answer the question instead.

Now, this partnership in the short term, this is certainly a win for OpenAI.

There are more than a billion active iPhones worldwide, and as much as OpenAI wanted to get on those iPhones using its iOS app, there is nothing more powerful than tapping into potentially every single question that people ask Siri.

But long-term, this partnership gets a little bit awkward.

Apple rarely has ever kept a critical part of their products with a third party.

One of the biggest examples is their chips.

They used to rely on Intel for all the chips in phones and laptops and such.

And at some point they're like, well, wait a minute, we can just make our own chips and we can make them exactly as we need and save money along the way.

So then they started making their own chips and now Intel is completely out of the Apple business.

It's similar here.

If Apple can ever make their own models that are roughly as good as ChatGPT, even if they're not 100% the same, they don't have to rely on OpenAI anymore or pay them any money.

The only question of this happening is the timeline.

Now let's talk about losers.

By virtue of OpenAI winning the partnership, the obvious losers might be Google and Anthropic, who were probably in discussions to get their respective AI models where ChatGPT is today.

The also obvious losers will be the AI devices.

Rabbit, Humane, all of those.

I've always had a big question mark as to why they needed to be separate devices that you had to carry around.

I mean, wouldn't the experience be the same if they were just an app on your iPhone?