Apple backs out of investment in OpenAI
Apple backs out of investment in OpenAI
Apple dropped out of the $6.5 billion investment round at the 11th hour.
That's good marketing. OpenAI recently went for profit on steroids. They are increasing chatgpt plus price, they backed out of providing free credits to startups, they also made it so Sam Altman would have full control over the company (basically non-profit board is no longer involved).
Not to mention sama first made outrageous claims about how he needs a crazy amount of energy for AI training and now that MS and other governments are starting to fulfill those requirements, he is changing the goal post to even more outrageous claims. Like literally he said if the world does not do this, there will be wars fought over AI in the future and only rich people will have access to AI.
There are a lot of reasons why Apple would back out. I wish we had more info.
I'd guess the 3 key staff members leaving all at once without notice had something to do with it.
So what does this mean for the so called apple intelligence that was coning out later next year?
Apple intelligence is their own project, with their own models. They bought a company specialized in AI at the edge (or on device). All the "AI" that will interact with user's data is Apple's.
Still waiting to see what the chat-gpt integration is exactly, but the more I read about the more it seems it just the usual writing assistant that we will soon find in every text and image editor and the hint that they will offer Gemini or other model as well really mean they haven't tied any real features to it.
According to the keynote at least, the integration is literally just Siri offering to defer to ChatGPT for some requests. Basically a more advanced version of "here's what I found on the web" if it doesn't know what to do otherwise.
Funnily enough, Apple isn't even paying OpenAI for that, they're literally saying it's for exposure.
It's their inhouse project, so if they'll probably focus their efforts on it if they're no longer investing in 3rd party.
I hope the AI bubble bursts
This will definitely cause pause amongst the non-cost sunk companies. They will be wondering what Apple knows.
IMO this signals the lack of clear ROI versus maintenance costs. Silicone Valley is used to funding huge projects like Amazon which took years to choke out the competition and make money. But AI is a new market which is more interesting to investors than people who didn’t want it in their mouse.
Silicone Valley
didn’t want it in their mouse.
Huh?
Mouse tits?
You know what they meant by the first one. The second one is about people not being interested in dumb products like the Logitech AI mouse. Corporations are all jamming AI into their products and marketing materials not because users like it (they don't) but because they hope it will attract investors. So AI is more interesting to investors than to people who don't want it in their mouse.
It’s the Data Science craze all over again. Hope we’re done with this soon.
As someone who works in data privacy, I don’t think the DS crazy ever died down. It’s bigger and more complex than ever. People just got tired of saying “big data” at Silicon Valley bars.
we'll be done with it exactly when the next fad picks up steam
Not only is AI a new market but it's the only market where someone with way less investment can leapfrog the shit out of you and that group can just release shit for free just to stab you in the dick after billions of investment. Open AI only has a hope if it can get massive state level contracts to fund it, likely by offering some type of surveillance service which they aren't even specced for but models like these are great at. Just all round bad investment decision to buy into them unless you know what they're planning.
the current tech is really unsustainable with its cost to usefulness ratio
needs a lot of optimisation to make it work and less "brute forcing" the models
I don't care for a lot of what Apple does, but there's no denying they understand how to make money--and how to avoid losing it.
Too late to the grift...
Why even collab with that clown, when apply has money to hire talent and buy NVIDIA cards to do the job...
Apple and Nvidia hate each other due to some failed business history between them. Apple didn't like Nvidia chips failing and hurting the MacBook reputation. Nvidia didn't like being thrown under the bus when the MacBook problem started to surface.
Since 2008/09 they have refused to even joke about doing business together.
They can and they are making their own chip designs to do the job.
The cloud part of Apple Intelligence runs on their own designed hardware.
I also doubt their Apple deal last 5 years,..
https://sh.itjust.works/comment/14174843
I didn't expect it wouldn't even last 2 days. 😅
Neural Net AI peaked last year, there is nothing new of that same magnitude to be mined