Comment by blitzar
3 days ago
Apple might have gotten very lucky here ... the money might be in finding uses, and selling physical products rather than burning piles of cash training models that are SOTA for 5 minutes before being yet another model in a crowded field.
My money is still on Apple and Google to be the winners from LLMs.
And when the cost of training LLMs starts to come down to under $1B/yr, Apple can jump on board, having saved >$100B in not trying to chase after everyone else to try to get there first.
I agree. That’s why I think EU‘s DMA is visionary, even if not perfect. LLM wars will prove EU regulators right I anticipate.
Apple has also never been big on the server side equation of both software and hardware - don't they already outsource most of their cloud stack to Google via GCP ?
I can see them eventually training their own models (especially smaller and more targeted / niche ones) but at their scale they can probably negotiate a pretty damn good deal renting Google TPUs and expertise.
Mostly AWS actually. Apple uses Amazon’s Trainium and Graviton chips to serve search services. "Fruit Stand" is the internal name for Apple at AWS.
Xserve was always kind of a loss. Wrote a piece about it a number of years back. It became pretty much a commodity business--which isn't Apple.
I always wondered what they were hoping for with their server products back when they had them. Consumers and end users benefit greatly from the vertical integration that Apple is good at. This doesn't translate with servers. Commodity hardware + linux is not only cheaper, its often easier, and was definitely less proprietary.
Its also a race to the bottom type scenario. Apple would have never been able to keep up with server release schedules.
Was an interesting but ultimately odd moment of history for servers.
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How is server hardware more "commodity" than MacBook laptops? Both are quite sophisticated and tailored to their audience in nuanced ways; both are manufactured at scale and face fierce competition. I don't think Xserve was a uniquely commodity business, it was a B2B service business--which isn't Apple.
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With Thunderbolt 5 and M5 Ultras, Apple could be building lower cost clusters that could possibly scale enough while keeping a lower power budget. Obviously that can't compete with NVIDIA racks, but for mobile consumer inference maybe that would be enough?
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Yeah… there’s this “bro— do you even business?” vibe in the tech world right now pointed at any tech firm not burning oil tankers full of cash (and oil, for that matter,) training a giant model. That money isn’t free — the economic consequences of burning billions to make a product that will be several steps behind, at best, are giant. There’s a very real chance these companies won’t recoup that money if their product isn’t attractive to hoards of users willing to pay more money for AI than anyone currently is. It doesn’t even make them look cool to regular people — their customers hate hearing about AI. Since there are viable third party options available, I think Apple would have to be out of their goddamned minds to try and jump in that race right now. They’re a product company. Nobody is going to not buy an iPhone because they’re using a third-party model.
Something weird has gone wrong in the psyche of humans.
Why are we even talking about 'AI'? When I heat up food in a microwave, I dont care about the technology - I care about whether it heats up the food or not.
For some bizarre reason people keep talking about the technology (LLMs) - the consumers/buyers in the market for the most part dont give a hoot about it. They want to know how the thing fits in their life and most importantly what are the benefits.
Ive unfortunately been exposed to some Google Ads re. Gemini and let me tell you - their marketing capabilities are god awful.
>Nobody is going to not buy an iPhone because they’re using a third-party model.
You're right, and this is proven. Apple has fumbled a whole release cycle on AI and severely curbed expectations, and they still sell 200m iPhones a year and lead the market [0]
[0] https://www.reuters.com/business/media-telecom/apple-leads-g...
Easy enough. Most people abhor AI and want nothing to do with it. The only ones who actually love AI (or what's being sold to them under that banner) are clueless and/or greedy executives, propagandists, and a select few legitimate AI artists doing pretty nice remixes of Star Wars, Harry Potter and the likes in a quality not seen before.