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Knowing how stingy Apple is, they’re probably still trying to get the expense approved.

That’s partially why they’re in the mess they’re in with AI. The CFO wouldn’t let them buy enough GPUs to train their models.

They needed all that money for more important expenses, like share buybacks, instead.

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People will buy Macs and iPhones even if they don’t have AI. In fact at this point, based on revealed market preferences, it’s almost a value add. And if the AI capitalization bubble bursts, most people would be ok with OpenAI or Anthropic going bust. Both of them going bust would be really disappointing, but even that wouldn’t be the end of the world. And Meta going bust would almost be a side benefit of a market crash.

But Apple going bust would be a genuine loss for the world. So I’m glad they’re being conservative.

(Not that I would be happy with either anthropic or OpenAI going bust - I hope they can weather whatever is ahead).

Yeah, it ultimately hasn’t hurt Apple much so far. Though eventually expectations may shift as AI gets better integrated into other phones.

Of course, there are a lot of AI features that we take for granted that aren’t LLMs, like speech to text, image foreground extraction, etc. Apple does tend to do this type of AI well.

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