Apple Inc. (AAPL) is reportedly in talks with Alphabet Inc.’s (GOOG, GOOGL) and OpenAI to license their generative AI models. This decision has caught the attention of billionaire investor Chamath Palihapitiya, who believes that Apple’s move reflects a broader trend within the company.
Palihapitiya recently took to social media to express his thoughts on the matter, stating that voice will be the critical ‘front door’ for the next generation of AI-powered internet. He emphasized that voice and text will play a significant role in shaping the future of internet functionalities, surpassing even images.
The investor pointed out that Apple’s reliance on third-party companies for AI technology, following its retreat from the automotive sector, suggests that the tech giant may be giving up on artificial intelligence development altogether. Palihapitiya argues that abandoning AI could have negative consequences for Apple, such as losing top talent, declining product quality, and diminishing revenues and profits.
He concluded by stating that Apple’s reported move to license generative AI models is an unsound business decision that could ultimately lead to the company’s hollowing out.
This development comes on the heels of reports that Apple is in discussions with Google and OpenAI to license their AI models for new iPhone software features. Additionally, the company recently informed employees working on its electric vehicle project, Titan, that many of them would be shifted to the generative AI division, with layoffs expected.
Overall, Apple’s decision to license AI models from third parties signals a potential shift in the company’s approach to technology development. It remains to be seen how this move will impact Apple’s future innovations and competitiveness in the market.
