Let Tim Cook

19 Jun 2024 · 34 min

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In short

Podcast Episode Notes: Better Offline - Let Tim Cook

Podcast Overview Better Offline is a weekly show that explores the tech industry's influence on society, shedding light on the growth-at-all-costs mentality of tech elites. The host, Ed Zitron, combines storytelling, interviews, and panel discussions to dissect the practices of major tech players, from cryptocurrency scams to venture capitalists.

Episode Title

Let Tim Cook This episode discusses Apple's recent announcement of integrating artificial intelligence (AI) features into its devices, examining the implications and trustworthiness of this move, particularly focusing on Apple's collaboration with OpenAI.

Key Themes and Discussions

Apple's WWDC Presentation

  • Lack of Enthusiasm: The episode contrasts Apple's subdued presentation at the Worldwide Developers Conference (WWDC) with the more exuberant announcements from competitors like Google.
  • Historical Significance: Zitron recalls significant announcements from past WWDCs, highlighting the shift in Apple’s tone and approach to AI.

AI Integration in Apple Devices

  • Apple Intelligence: The new suite of AI features, referred to as Apple Intelligence, is set to include functionalities like:
  • Generating transcripts of calls
  • Creating images with a tool called Image Playground
  • Assisting with email creation similar to Grammarly
  • Siri's enhanced capabilities to assist directly with on-screen tasks
  • Privacy Concerns: Zitron emphasizes Apple’s focus on privacy, with claims that data processing occurs without compromising user information. However, skepticism arises regarding the effectiveness of these privacy measures.

Criticism of OpenAI's Deal with Apple

  • Subpar Agreement: Zitron critiques OpenAI's deal to integrate ChatGPT into Apple devices, describing it as potentially the "worst deal in tech history". Key points include:
  • No monetary exchange for the integration; Apple benefits from OpenAI’s capabilities without compensating the company.
  • Users will interact with ChatGPT in a limited manner, with ambiguous prompts on when and how they might use it.
  • Financial Implications: The integration could lead to substantial financial losses for OpenAI, especially considering the costs of running a large language model.

Broader Implications for the Tech Industry

  • Trust and Power Dynamics: The episode discusses the implications of Apple's integration of AI tools, suggesting that it reflects a broader trend of tech companies consolidating power while managing user trust concerns.
  • Future of AI: Zitron speculates on the future of AI integration in consumer devices and how companies like Apple might respond to user demand and regulatory scrutiny.

Conclusion Zitron closes the episode with reflections on the current state of the tech industry, emphasizing the ongoing battle between user privacy and corporate power. He leaves listeners to consider the ethical implications of AI development and the potential consequences of the tech elite's decisions.

Key Takeaways

  • Apple’s approach to AI is cautious, emphasizing privacy while integrating features that may not be groundbreaking.
  • OpenAI's collaboration with Apple raises concerns about the sustainability and profitability of AI models in a competitive market.
  • The episode highlights the need for transparency and ethical considerations in tech’s rapid evolution, particularly regarding user data and trust.

Additional Resources

  • For links to relevant articles and studies mentioned in the episode, visit [Better Offline Links](https://tinyurl.com/betterofflinelinks).
  • To engage with the podcast community, check out the Discord and Reddit channels provided in the episode.

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Transcript

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2:54Hello and welcome to Better Offline. I'm your host and generally optimistic man, Ed Zitron.

3:12Last week, Apple announced Apple Intelligence, a suite of features coming to iOS 18, that's the next version of the iPhone software, in a presentation that Fast Company called Uninspired, Futurism called Boring, and Axios claimed failed to excite investors. They did not even check the stock took. Anyway, the presentation, given at Apple's Worldwide Developers Conference, usually referred to as WWDC, and where Apple usually announces its next software updates, felt remarkably demure in comparison to May's Google I.O. conference, which is Google's equivalent, where CEO Sundar Pichai and head of search Liz Reed hyped the next generation of Google products and search updates that absolutely nobody asked for.

3:55Historically, Worldwide Developers Conference is where Apple announced major updates to both its product and software lineups. At WWDC 2005, the late Steve Jobs announced the company would move from IBM-designed and Motorola-manufactured PowerPC processors, allowing for faster and more power-efficient computers, as well as the ability to dual-boot Windows, a huge moment for Macs that was met with rancorous applause from people that really should have known better. 15 years later, Tim Cook, now CEO, would announce Apple's shift away from Intel's stagnating x86 architecture to Apple's homegrown ARM-based processors, starting with the M-series processors that have now become ubiquitous across Macs and iPads, one which was met with the bombastic promise that these were the most powerful chips ever created.

4:44I should add, by the way, the M-series processors are actually probably one of the better things that's come out in the last 10 years. The average MacBook Air is insanely fast now. Like, I have a MacBook Pro. It's phenomenal. A lot of you say I'm not positive, okay? These are things I like. Here are things I like. Are you happy now? I am, kind of. Anyway, WWDC is where Apple has unveiled every new version of the Mac operating system OSX. It's where the original Mac Pro, FaceTime, and the iPhone App Store were introduced to the world. This is the conference where Apple flexes its muscles and boasts about how powerful and important Apple is.

5:24Now you can understand why this year was just so strange. Gone was Apple's trademark bombast, its propensity to tell the world how good it was at everything and how important its next big thing was. Instead, we got this weird juxtaposition between we're putting AI on your phone and it's totally fine. It's not a big deal. You shouldn't be scared at all. It's not that big a deal. Please don't be mad at us. despite this ostensibly being apple's big artificial intelligence play ceo tim cook and svp of engineering craig federighi spent far more time explaining how much they love privacy and cherish your data and would never share it with anyone and listen to all the ways we're keeping it private before casually sauntering into a series of product updates that appear to actually use AI for a purpose and kind of useful, and heartily suggests that Apple is intentionally trying to distance itself from the AI hype train.

6:23And while it's integrating ChatGPT into iOS 18, which don't worry, I'll get to later, it's doing so at an arm's length approach, with most of the day-to-day AI work done by the company's own models and actually on your device. these ai integrations which arrived sometime in the fall to the iphone 15 pro and iphone 15 pro max that's autumn for my british readers and listeners along with ipads and macbooks with m1 or later chips they're fairly straightforward and don't do anything we haven't really seen elsewhere which is kind of the apple game apple's ai can generate transcripts of calls but not before warning participants that it's doing so generate images through a tool called image playground help write and rewrite emails, kind of like Grammarly does, and perform distinct actions across multiple apps, like adding slides to a presentation or opening a web image with the Photos app, where you can edit it.

7:18The last item's a little bit fuzzy as it extends to both Apple's own apps and other third-party apps, and the functionality itself is expected to roll out over the coming year or so. And as ever, take any promises made without a demo with a big grain of salt, which I guess is just a regular grain of salt when you think about it. Apple also says that Siri will soon have an awareness of what's on your screen and be able to respond appropriately. In one of their demos, you're filling out a form that asks for your driver's license number. Siri can then look through your photo library, identify any pictures of your license, and grab the pertinent information for you.

7:52Equal parts useful and creepy, and also I really do not recommend having a picture of your driver's license saved on your phone. But thanks to the power of artificial intelligence, you can now generate your own custom emojis! a feature that screams we have to fill a few minutes of this goddamn presentation. But nevertheless, they were quite excited, more excited than the OpenAI integration, which, as I've said, I will get to later, as it requires a bit of space for me to laugh. Apple claims that many of these features run entirely on your device, and those that don't use something called private cloud compute, where Apple claims, in a lengthy privacy statement I'll link to, that at no time will anyone ever have any access to any of the data that's being processed on their servers, even, and I quote, during active processing, meaning when Apple's servers are handling the request.

8:43Apple has also offered security researchers the opportunity to personally verify the claims it's making, and in general, the news, it seems to have been well received, though some, like Chief Privacy Officer Steve Wilson of Exabeam told Dark Reading, worry that threats in generative AI are poorly understood, and that, despite Apple's best efforts, and no doubt heavy policing, some will slip through the cracks. On some level, Wilson is being a little alarmist, with his only criticism being that we don't know everything about this thing, generative AI, and thus should be scared about what we don't know, which isn't wrong.

9:21On the other hand, he's right insofar in that we are relatively early days into the mass-scale use of large language models like Apple's, like GPT, like Anthropics Claude. Apple has chosen, albeit cautiously, to take the risk of integrating these models into devices at a time when companies like Google and Meta have proven that one cannot simply trust that a multi-trillion dollar company will maintain the stability and privacy of a product, or for that matter, can guarantee the accuracy of its outputs. It also really doesn't help, that Apple CEO Tim Cook told the Washington Post that Apple's AI is short of 100 % when it comes to hallucinations, which as a reminder are when these LLMs tell you something authoritatively that isn't true.

10:06And this is a little bit worrying when we're talking about an AI model that's taking actions across your apps. These features are predominantly running on Apple's own models, like I've said, so not on GPT or Claude or anything, which according to Apple are trained using licensed data, such as images licensed from Shutterstock. Data selected to enhance specific features, no idea what this means, but it's from licensed data at least, as well as publicly available data collected by Apple's web crawler Applebot, which Apple allows publishers to opt out of using a rule added to their website's code.

10:43Which I should add does not solve the bloody problem if Apple has already used the data for training purposes, which is bordering on impossible to confirm. I should add I have added this code to my website. You're not getting my blogs, Mr. Cook. And the thing is, if Apple already has done this, if they've already scraped this stuff, if they've used publicly available, which could mean any website on Google, for example, it's indicative of some really shady, shitty, underhanded behavior. While it's fair to say that Applebot, the web scraper, isn't new, it arrived at some point in 2015, it wasn't really publicized that much, save for a few posts on Apple rumor sites speculating that the company was working on a replacement to Google Search.

11:26Which, by the way, never happened because Google pays over$10 billion a year to Apple for that monopoly. Jesus Christ. Prior to the launch of Apple's generative AI features, Applebot's sole stated purpose was to provide data for Siri and Searchlight, the search built into macOS X that scours both the user's hard drive so that it can pull data out. So say you're looking for a file or it can search for something on the internet. Generally a useful feature, but an entirely different one to a generative AI one. If Apple is already training its models on data scraped by Applebot, it would be immensely deceptive using a tool way beyond its intended purpose, or at least its advertised one.

12:07If this came to pass, those unwilling to have their content repurpose this training data for a trillion dollar tech company would really have nowhere to go. What are you going to do? Getting an AI to unlearn something isn't exactly straightforward, and Apple has yet to explain how that might work. I've reached out to Apple for comment here, but it's unclear exactly how it intends to fulfill this promise that you can opt out of being included in their training data, especially if the Applebot crawler has already allowed said data to be fed into the model. If I hear back, it'll be a little bit of a pain in the ass, but I will update that here.

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15:53Amerifactors provides ready cash flow through accounts receivable management. Get tailored solutions. Call today for a free, no obligation, no impact to your credit score quote at 800-884-FUND. That's 800-884-3863. Or visit amerifactors.com. Though Apple has done a better job than most, it's gross. It's disgusting, especially for the, generally the best of the big tech companies, to do the thing that all these people have done. It's disgraceful that yet another big tech company has seen the open internet as its personal property. Despite publishing a remarkable amount of information about their privacy standards and how their models are trained, Apple likely hopes that this privacy-focused media blitz will hide the fact that it's ripping off everybody's work just like Google, just like OpenAI, and just like Anthropic and Meta.

16:47Except it's doing so in a way that's a little bit easier for the media to swallow, because the main selling point of its AI is not vomiting out oodles of anodyne business bullshit. Unless you're using the smart reply feature in mail, which drafts a response to an email for you. I'm just, I really don't understand people who need that. I'm sorry if you can't email someone back with your brain words. What's going on? Seriously, what's going on? But it sucks though. It really sucks. Even for the smallest feature to have to steal people's work. Especially when you have, what,$200 billion in the bank?

17:25Just a complete mark of disrespect against anyone who isn't an Apple user and plenty of people who are. This is particularly worrying when you consider Apple's image generation features, which will function similarly to ChatGPT and stable diffusion. And yes, I'm getting to ChatGPT. While I'd love to believe that Apple has only used licensed content to train its models, it really isn't the case. And if their version of publicly available includes things from Google or DeviantArt or social networks, Apple's just part of the problem. They're just part of the pillaging of the internet. They are stealing, just like all the other big tech companies.

18:01And there's just, this is a time when I feel a little helpless for everyone. I don't know what you do here. And I don't think we're going to hear anything back from them. But as I mentioned, I've requested comment from Apple about this, and I hope that I get an answer. Apple's approach to PR doesn't fill me full of hope, though. It's almost as contemptuous as Tesla's. They only really provide comment and interviews or review samples to those journalists they've deemed worthy, and only really on certain subjects. It's a style that mirrors the kind of haughty, snooty image it crafted in the mid-2000s, with those goddamn I'm-a-Mac ads, with reporters divided into worthy and unworthy camps, meaning, by the way, those who would bend the knee to Mr.

18:45Jobs and his company. and those who would not. And by the way, there weren't many who wouldn't. But okay. If you can put these very real concerns aside, Apple's AI announcement feels equal parts useful and extremely strange. These are not world-changing integrations. They're useful ones. Transcriptions, a bit of Siri that works like it's meant to, that can take actions across multiple apps and know what you're talking about based on what and on the screen. Theoretically, at least, a better photos app with better search, which is already in the product already, and the ability to edit photos with AI and remove things from backgrounds.

19:23These are cool features. These are the kind of things that Google would staple onto a Pixel phone to pretend you're going to buy one instead of an iPhone. And these are all things that a user could foreseeably want to use in their daily lives without being told that they're in the future, in large part because they are not. In fact, I'd argue that Apple's biggest generative AI push is in trying to sell us back the idea that Siri can actually do stuff years after most users accepted that it was kind of a voice-controlled roulette wheel that occasionally understood you. And for my Scottish, British, and other people with accent friends, that's very occasionally.

20:01What's weird, though, is my Apple TV remote can understand me every time. I can say like the Imaginarium of Dr. Parnassus, and it will pop up immediately, but I tell my phone, hey, can you play this song on this HomePod? And it just freaks out. It has a complete conniption. It's so strange. Nevertheless, putting all my jokes aside, looking at everything here, I just can't get over how reserved Apple is being about artificial intelligence. While Google has desperately tried and completely failed to convince Wall Street that it's building and selling the future by putting generative AI into search and making it worse, Apple's almost desperate to explain how boring and normal your iPhone and Mac could be, and how Apple intelligence is just another feature that will make you want to keep using Apple products rather than the reason that Apple should be worth$40 trillion and keep growing forever.

20:56I like how Wired's Will Knight put it. He said that AI is a feature rather than the product. And this is what's really interesting about this. Apple really doesn't feel like they're selling us the future. They feel like they're selling us the present. And maybe that's a good thing. Maybe it's good that Apple isn't rushing. But also the fact that Apple isn't rushing kind of says something about the wider AI movement. It suggests that, outside of what they're offering, they don't really see much value to it. And now we reach the funny part. Quietly stapled onto the end of the announcement of Apple Intelligence was integration of OpenAI's chat GPT in arguably the vaguest least consequential way that I've ever seen a product launch.

21:42After spending an hour and a half, actually more so, talking about how great its own AI features were, Craig Federighi mentioned that, and I quote, There are other artificial intelligence tools available that can be useful for tasks that draw on board world knowledge or offer specialized domain expertise. Just completely stupid. Anyway, saying that Apple wanted users to be able to, and again I quote, use these external models without having to jump between different tools, integrating them directly into Apple's OS, starting with the pioneer and market leader OpenAI. Apple's integration with OpenAI, the supposed big dog, the big swinging dick of the tech industry, in the biggest announcement for the company in years, was explicitly advertised as the first of multiple integrations with multiple models.

22:30I'm not even kidding, literally that was the end of the announcement. It's very funny. And even then, ChatGPT's integration with Siri is entirely opt-in, with certain requests that they were very unspecific about, occasionally prompting Apple to ask you if you'd like to run them through ChatGPT. Like, I have these ingredients, what meal can I make? And other questions that tens, maybe even hundreds of people will find useful. Or having ChatGPT write a bedtime story for your kid, if for some reason you lack books or creativity. Or you feed into this weird thing with AI people where they think everything has to be about you and that you must be the star of every story.

23:07That's a separate podcast, Ed, put it away. ChatGPT can also generate images and summarize documents, features already available in Apple's own AI. This underwhelming addition to an already placid announcement ends with Apple adding that it intends to add support for other AI models in the future before moving on to how developers can integrate Apple's own AI. The deal that would supposedly cement Sam Altman's hold on Silicon Valley and OpenAI ended up being a two-minute-long sidebar at the end of a near two-hour-long announcement, one that requires users to agree every single time they interact with it, with no specifics about how often that a user would actually see ChatGPT.

23:49Despite the insane romanticization of Sam Altman's incredible technology, Apple's approach is one that begins and ends with them saying, do you really want to use this? And a remarkable lack of excitement or trust. While it remains to be seen exactly how often you'll be prompted to use it, ChatGPT's addition to Apple products feels far more like something cooked up to please Wall Street. And it worked, briefly making Apple the most valuable US company, beating Microsoft just for a minute, all without having to invest billions of dollars into another company. now quick side note there's undoubtedly here a level of cya covering one's ass here if apple could it would undoubtedly monopolize ai on the iphone much like it has with app distribution and browser rendering engines that's the bit of the web browser that turns html css and javascript into a web page from the beginning apple has sought absolute control of the ios and its derivatives, iPadOS, tvOS, and watchOS ecosystems, using user safety as a justification for, well, their kind of benevolent dictatorship.

24:57The problem is, the line between protecting users and anti-competitive behavior is thin, and indeed regulators, particularly those in the European Commission, aren't convinced that Apple's ironclad control of the iPhone is entirely altruistic. And that's why you can access alternative app stores in the European Union, and even install apps directly from the web. And it's why you're no longer tied into using the Safari WebKit rendering engine, even if you install an alternative browser like Brave or Safari. Or Firefox, indeed. If Apple iced out OpenAI or Anthropic, they both could conceivably complain about Apple to the European Commission, who might rule in favor of them and order Apple to start supporting their models, in addition to levying a huge multi-billion dollar euro fine.

25:40And so, Apple chose to save itself the hassle and the cost and buried OpenAI and the rest of them in the back.

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28:43Wow. Chat GPT on every iPhone. Well, iPhone 15 Pro and so on. That's millions, hundreds of millions of people. That's tons of M1 and M2 and M3 Macs. It's a huge deal. Each time that someone interacts with Chat GPT, even though they're not profitable, That's still a sliver of revenue. They're still paying ChatGPT, right? They're not just stapling this on. Sam Altman isn't doing this for exposure, is he? Yes, he is. This is not a coup at all. At least, not one for OpenAI. As reported by Bloomberg's Mark Gurman, Apple didn't give OpenAI any money to integrate ChatGPT, paying them in distribution, as I said, for a tool that loses the money on literally every transaction.

29:32Apple doesn't appear to be paying anything. Goerman also reports that users will be able to upgrade their ChatGPT accounts to ChatGPT Plus through the integration. No idea. I'm sorry. It's faster. You get more requests. Who cares? But the important thing is that upgrading to ChatGPT Plus will likely operate on the same terms as every other digital good on iOS, meaning that OpenAI will be paying 30 % of that take to Apple, unless the user upgrades directly on ChatGPT's website. This is not good for this company. To be clear, in most cases, companies integrating ChatGPT pay them on a per-thousand-token basis, meaning that OpenAI will, while unprofitable, still generate revenue of some kind when people ask them stuff.

30:18Yet Apple's deal doesn't appear to pay them at all, Meaning that every single time that someone uses ChatGPT on their iOS device, they will be bleeding money. The more popular it is, the more money it's going to lose them. It's a terrible deal, folks. This deal is equal parts perilous and hilarious. It's so funny. And it's something that could genuinely end up hurting OpenAI, all while insulating Apple. In the event that this integration actually sees adoption by Apple's hundreds of millions of users, it's going to cost OpenAI incredible amounts of money, thanks to the fact that generative AI is both compute and energy-intensive, unlike any other piece of tech.

31:02Especially as I imagine most users will ask it the occasional question and find no reason to opt into the$20 a month ChatGPT Plus subscription. Why would you care? What is the use of this? On some level, it also shows a remarkable amount of disdain from Apple towards OpenAI. Most deals that hinge on the vast reach of the iOS ecosystem involve some kind of exchange of money. In 2022, Google paid roughly$20 billion to be the default search engine on iOS. And just to be clear, that deal, very clearly a mob-style thing. That's just Google saying, look, it would be, wait, please don't build a search engine.

31:39Please don't build a search engine. Our search engine's really bad. Just let me pay you, man. Really gross stuff. But given the cost of running ChatGPT and the fact a large language model query is inherently more sophisticated and computationally expensive than a simple search one, you'd expect the opposite to be true, right? That Apple would pay OpenAI something to defray its costs. But no, no money's changed hands. And if OpenAI makes a sale directly on the iPhone, it'll undoubtedly be subject to the same Apple text as every other company, like I said. This is possibly one of the worst deals I've seen in my life.

32:17It's a terrible deal, folks. And I'd also speculate that Apple likely requires some level of service-level agreement for its partners, meaning that OpenAI has to dedicate resources to maintain uptime for Apple devices using ChatGPT for free, which will in turn be incredibly expensive to maintain, burning money with every query on a product that Apple will only offer when Apple's services can't do the job. And if iOS 18 doesn't bring the expected users to chat GPT, those resources are just going to kind of sit there, unused, redundant, and they could be servicing other deeply unprofitable demand.

32:52It might be hyperbolic to describe this as tech's equivalent of the Versailles Treaty, but only a little bit. It's also just unbelievably funny. It's so funny. You heard the last episode. You heard people talking about Sam Altman, like the art of the deal guy, the deal master, the master of contracts, the guy who can outthink us all, the mega genius, the mega nerd, the ultimate deal maker who could split the valley asunder with a wave of his hand. Sam Altman is regularly described as this tier one operator, this superior intellect. And yet he has signed the worst tech deal I've seen, other than, I think, the one signed by Yahoo with Bing from a few episodes back.

33:40It might actually be worse though, because even then, Yahoo got paid by Microsoft. Jesus Christ. I think this also proves something else. OpenAI, they have no leverage. They don't have anything they can play with. They don't have anything they can go to Apple and say, you need us, baby. No, they haven't got shit. It's hilarious. OpenAI has effectively agreed to give ChatGPT for free to hundreds of millions of people and got absolutely nothing in return. And worse still, in this marvelous technological cacol tree, according to Anissa Gardizi of the information, Apple is already working on cutting deals with both Google and their Gemini, LLM, and Anthropics Clawed to integrate them into iOS, likely using OpenAI's dogshit deal to leverage better terms.

34:31Altman may have been at the Worldwide Developers Conference. He was there. People were taking pictures of him. They were acting like it was this big goddamn deal. But he didn't get to speak, nor was he mentioned during any of Tim Cook or Craig Federighi's remarks. Apple treated ChatGPT with less excitement than a new suite of emojis. Kind of like an afterthought to a presentation that was deliberate and intentional in its lack of froth or hype. A series of fun, potentially exciting features. things you could play with if you wanted, all delivered with a continual promise of privacy and reliability that tacitly accepted that the AI hype train was moving a little too fast.

35:10And it's a humiliating moment for the generative AI movement, especially so for OpenAI, a company that desperately needs good news at a time when the world has become deeply suspicious of its product and its CEO. Apple is, for better or for worse, the gatekeeper to the technology used by hundreds of millions of people and apple has decided that chat gpt is a feature not a product and one that isn't trustworthy or useful enough to run without a user's permission or even pay for this was on some level open ai's iphone moment though this was the time when the world would see exactly how important the most important tech company in the world thought the most important startup in the world was and the answer was not particularly important at all apple can and likely will dump chat GPT at a moment's notice, replacing it with any number of other large language models, or ripping the feature out entirely thanks to the fact that it was introduced as a feature at the end of another feature at the end of a presentation of better, more useful features.

36:11And what's insane is, all of this is done without you creating an account. I know some of you might be a little bit scared that chat GPT's in your phone. It isn't. They don't get your queries. They don't save anything about what you're doing on there. Apple has raked them over the coals. And you don't even need an account to use it, which means that they're not even increasing their users with this. Their queries are going up, but they can't even get any vanity metrics out of this. It's so unbelievably busted. It is one of the funniest and worst deals I've ever seen. I think it also shows that Sam Altman doesn't have the juice.

36:48He really hasn't been able to, outside of kind of intimidating people vaguely in the valley, really use his power that much. Microsoft weighed in to get him back at OpenAI because it was good for Satya Nadella, who had kind of tied his fate to Sam's. And it's funny, the moment they step into the real world just doesn't seem to scale that well. Where are the big deals for OpenAI? Where are the huge integrations? The information reported last week that OpenAI's annualized revenue, which by the way is just a fudged figure, it takes the months of revenue so far and extrapolates from there. They say their annualized revenue is going to reach the billions in 2024, yet they're still so unprofitable.

37:29And even if Apple had paid them money to integrate chat GPT, it would still lose money on every search. And it's so bad. I'm not sure why no one else is saying this. And maybe some are. Nick Bilton and Vanity Fair will give you cred there, Nick. Classic Dagnum lad. And the thing is, the few people saying it with me are also smart. I don't know. But this is a crazy bad deal. This is one that guarantees that OpenAI will bleed money every single time someone picks it up, if they even use it. If they don't use it, that's still embarrassing. It's still a deeply damaging thing for OpenAI. Sam Altman, despite being the Valley's golden boy, didn't get to go on stage.

38:14They didn't even, in this presentation, mention what ChatGPT's premium features do, nor did they really make much effort to explain why you should give a shit. And I'm not trying to romanticize Apple. There are no great big tech companies. I like my Apple devices. I'm looking forward to some of these features. That is faint praise for a tech industry that's lost its way. But I will give them credit for Tim Cook cooking Mr. Altman, because this is a great time for people who like bad things happening to bad people. I know I shouldn't be calling Sam Altman a bad person. I mean, just read the stuff about him, listen to the episode.

38:54But look what happens when a little boy from the world of startups tries and goes up against the ugly forces of capitalism, the real scary monopolies. Apple won't accept another monopoly. This is the empire, for better or for worse. It is scary how much power Apple has. It is worth considering whether you are feeling safe using AI on these devices. What they've said suggests that, yeah, I would say you are. But I think that's something you really should consider. And in the episode links, I will provide all of the documentation of everything I'm talking about here, because I want you to genuinely know everything you can and make an informed decision.

39:35I will say I would be unsurprised if every single other phone company doesn't do similar stuff. Samsung's already doing AI stuff. I haven't looked, but I imagine Google is too. Everyone's going to be doing this. I would trust Apple above them because they apparently have clearly worked out that what people actually want is for their phones to work and that they'll keep making money just by making people happy. I'm not going to say they're super ethical. They're better than most. They say that with a great deal of kind of annoyance because I don't really want to blow smoke with them. but back to the really fun part this may be a genuinely dangerous thing for open ai and at the very least it's deeply horribly humiliating sam altman might be able to walk into any room in the valley and say insane things like i need seven trillion dollars for new energy i need an 100 billion dollar computer mr nadella when he walks up to tim cook there's nothing to really say Oh yeah, we'll add this at the end so that Wall Street feels happy.

40:42And that's all this is. This is so idiots like Jim Cramer on CNBC can say, wow, Apple's got chat GPT in it. And great, it doesn't matter. It's buried. And I guarantee you, you're going to be able to turn it on. Apple aren't the best. I don't know who the best are. I don't know who the most ethical are. I don't even know how you evaluate that. But you know what? Let Tim cook.

41:13Thank you for listening to Better Offline. The editor and composer of the Better Offline theme song is Matt Ossowski. You can check out more of his music and audio projects at matosowski.com. M-A-T-T-O-S-O-W-S-K-I dot com. You can email me at ez at betteroffline.com or visit betteroffline.com to find more podcast links and, of course, my newsletter. I also really recommend you go to chat.wheresyoured.at to visit the Discord and go to r slash betteroffline to check out our Reddit. Thank you so much for listening. Better Offline is a production of Cool Zone Media. For more from Cool Zone Media, visit our website, coolzonemedia.com, or check us out on the iHeartRadio app, Apple Podcasts, or wherever you get your podcasts.

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From the publisher

Last week, Apple announced that they're integrating artificial intelligence into your iPhone and Mac in a stunningly demure and reserved presentation. In this episode, Ed Zitron walks you through whether you should trust Apple - and how OpenAI agreed to the worst deal in tech history to integrate ChatGPT in the least-prominent way.

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