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Comment by drob518

3 days ago

Yea, I think it’s smart, too. There are multiple companies who have spent a fortune on training and are going to be increasingly interested in (desperate to?) see a return from it. Apple can choose the best of the bunch, pay less than they would have to to build it themselves, and swap to a new one if someone produces another breakthrough.

100%. It feels like Apple is perfectly happy letting the AI labs fight a race to the bottom on pricing while they keep the high-margin user relationship.

I'm curious if this officially turns the foundation model providers into the new "dumb pipes" of the tech stack?

  • It’ll be interesting to see how it plays out. The question is, what’s the moat? If all they have is scaling to drive better model performance, then the winner is just whoever has the lowest cost of capital.