Stephen Nellis

I know people tend to think of Apple and Google as sworn enemies because one of them makes the iPhone and the other one provides the Android operating system.

But Google has many businesses, and the primary way to think about this deal is Apple needs this technology to keep its products like the iPhone and the iPad competitive.

There are a range of options to choose from.

Microsoft, OpenAI, Anthropic, and Google is who Apple has chosen.

Tim Cook, the CEO of Apple, has very much talked about AI as an enabling technology that should work behind the scenes to make products do things that you want them to do and do them better for you.

For example, on the Apple Watch, they can use just a tiny bit of signal from the heart rate monitor there to detect things like potential heart conditions and alert users to it.

Those are already using different forms of AI behind the scenes.

So that's a very different approach and a different business model from companies that are trying to push products to consumers that will keep them engaged for a long time.