Chapter 1: What is the main topic discussed in this episode?
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Apple has selected Google Gemini to power all of their new AI features, including Siri. This was after a massive flop where Apple announced Apple intelligence would be coming soon.
And then after they sold all the iPhones that were apparently, you know, set up to have this Apple intelligence, they kicked the ball and said or kick the can and said, actually, we're going to move the launch of Apple intelligence one year into the future.
And while they had a couple little features like text summary snippets, which were basically just as long as the original text, but sometimes had like really crazy summaries on them that people thought were ridiculous.
There wasn't really a lot of Apple intelligence and all of the things they promised for Apple intelligence would be able to take control of your phone and click around and do things. None of that actually shipped.
In the meantime, we've had dozens of companies, including Anthropix, Claude and OpenAI and many others ship absolutely incredible versions of this where you have AI taking control of your web browser. you have Perplexity's Comet. And essentially, this technology is like very possible. It's very doable. It's out there. Other companies are doing it. Apple never was able to execute on it.
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Chapter 2: What led Apple to choose Google Gemini for AI infrastructure?
I just really don't think it's useful for anything. But they did have a feature where when you ask it questions, if it didn't know the answer, just shoot it over to ChatGPT. So this functionality is built in. You know, if you need if you needed some sort of broader world knowledge or more expansive generative answer, it could do that under the new arrangement that they have.
I think the center of gravity is essentially shifting towards Gemini with all of the other models potentially becoming optional layers rather than the default brain. So like Gemini is going to really power it where they used to hand things off to OpenAI or ChaiChipD. It will now go off to Gemini.
Chapter 3: What were the challenges Apple faced with its previous AI initiatives?
I think Apple's pitch since it introduced Apple Intelligence has been not very consistent. But to them, they say it's consistent. They're trying to basically make AI feel like a built-in feature of the operating system, not a separate destination app. That's the pitch that they've had.
The problem is when they haven't been able to achieve that, they've just basically canceled it or kicked it down the which I don't think is very acceptable for a lot of users that purchase the devices expected to be able to use the features that they advertise and announce. But regardless, maybe I'm just a little bit salty.
I think because of this, that means that there's a lot of really small practical upgrades that they have to make to actually make this work. They have to make smarter photo search and notification summaries. They have to pair this with, you know, there's a big emphasis on privacy and data minimization. The thing is, Google's already done all of this for Android. I don't have an Android device.
Maybe that'll be the next one I buy. But Google has a lot of this integrated, which is really interesting because Google's like basically been piloting and doing this for the last two years. And now Apple is going to rely on Google to do it on their own ecosystem. So it's going to be interesting to see if that's basically a long-term relationship.
This joint statement that they both, Apple and Google, put out really doubles down on the framing. They say that Apple intelligence is going to continue to run on device when possible and via Apple's private cloud compute. This is something cool and interesting. I will give Apple some flowers and stop roasting them for once.
If they can really make these models run on the device without needing access to the internet, this could be really cool. You could be off the grid, you could be somewhere in the middle of nowhere with no internet access, and it could be useful. Now, in that situation, I will also say, With Starlink, basically, I don't think in the next few years anyone's going to have no internet access.
I think you'll have it basically anywhere. But yeah, I think this is kind of an interesting pitch or feature that Apple could kind of show off. But when it does need more horsepower, when it does need more knowledge, it can go and kick stuff over to Gemini. So this should be interesting. I think this is a really big cultural shift. Apple's brand is vertical integration.
They own the full stack from silicon to software. And historically, they've really resisted dependencies that could shape the user experience. But AI has definitely become something that is You know, even the most vertically integrated companies are basically forced to pick their battles, right? Like, is it really worth developing our own AI model or should we just use someone else's?
I think Apple 100% could have and should have and they didn't. But, you know, regardless of what happened, this is where we are today. I think Apple can keep its user interface. They can keep their routing logic. They can keep their privacy layer.
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Chapter 4: How does the Google Gemini partnership impact Apple's AI features?
In any case, a judge is saying that it's got to happen every year. I think in the context of that, it's important because this Apple AI deal with Google means that even though it's technically, you know, not exclusive, it's kind of the same partnership that I think regulators are going to scrutinize from kind of a market shaping, the market shaping effects that it has.
I think the question is not just whether Google is going to pay for the default placement, but whether Google becomes the default intelligence layer across billions of Apple devices. And, you know, what is... What does that mean in the competitive landscape of AI platforms? So I think this is an interesting thing to kind of think about.
From Google's perspective, this is distribution at nearly unmatched scale, right? Routers notes that Apple has more than 2 billion active devices, which is going to expand Google's reach way beyond Google's own apps and its existing device partnerships, which is fantastic for Google. I think it's also a narrative win, right? For the last year, the public story has been that Apple is behind in AI.
If Apple, the company which is, you know, the most famous for waiting until technology is mature, is deciding that Gemini is the best available foundation model for its next assistant, I think that becomes kind of a third party validation for Google's model progress. I think if you look at the stock of Alphabet, Wall Street has definitely noticed this.
You know, after this announcement came out, Alphabet's market value and their stock price had, you know, increased. So these are things I think we should watch next. First of all is how Apple is going to route the requests.
If Siri defaults to Gemini for most open-ended questions, Apple's earlier kind of chat GPT handoff is going to become a secondary path and user experience I think is going to change really quickly. The second thing is how Apple enforces the privacy boundaries, right? Apple is promising it's going to preserve its privacy posture.
But I think the real test is going to be what data is sent off of the device, what is logged and how the system behaves under kind of this ambiguous or a lot of these kind of sensitive requests. The third thing I think that we want to look at is the regulatory reaction, right?
With Google already under, you know, kind of getting looked at for some of these deals they've made with Apple in the past. I think any perception that Google becomes a new kind of default on iPhones is going to attract attention from courts and regulators, even if the deal is structured differently than search.
So I think Apple is betting that it can keep the AI Apple-flavored through kind of their product design, their privacy architecture. while letting Google supply a really big part of the raw intelligence. I think for users, the hope is really simple, that Siri will finally feel less like a voice remote from 2014 and more like an AI assistant that's built for 2026. Only time will tell.
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