OpenAI's Bold Move, Apple’s Next Battle & The Future of Tech

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3:22Speaking of Apple, one of their ex-stars, Johnny Ive, OpenAI just purchased his company for$6.5 billion and a groundbreaking deal. So what do we think about this acquisition? It further cements the new generation of tech. And I'll say Fang is dead. They're going to have to restructure what the top five or four is after they go public. I've been calling for them to reconcile with Johnny for the longest time. It was brilliant that they launched this after the Google I.O. conference. But there's a lot of clashing in Apple's culture that is preventing them from getting some of those former star players back together.

4:14And Sam Altman did a great job. I was telling Red Hat it maybe for at least three months, four months, that they were going to team up and here we are. I don't like the idea of that circular pin that they want to put out as a first product. From what I have heard, though, they have built their operating system first, which is brilliant, which tells me they could start to attack this thing eventually. So the first product they put out is incredibly important. But in terms of partnership, like Microsoft, once again, stock of the decade is going to benefit greatly from this partnership. But you can see the writing on the wall to see where Sam is trying to have this contingency plan to then get away so he can be the new tech darling in that space.

5:01I think brilliant partnership. The trailer was amazing. Whenever I see like two white men walk into a bar in San Francisco and they smiling, a lot of money on the table, billions of dollars, multi billions of dollars. And as people are getting tired of the iPhone, it was a brilliant idea to partner with someone who cares about product a lot when it seemed like Apple doesn't care about it anymore. All right, let's let's run down the list of the things that John has helped design or create himself. So, 1998, the iMac, 2001, the iPod, 2007, the iPhone, 2010, the iPad, 2008, the MacBook Air and MacBook Pro, 2015, the Apple Watch, and 2013, the redesign of the iOS system.

5:50You probably should have kept that relationship together. it's one of those it i read an interesting article they were saying that open ai uh purchasing next which is his company feels like a move that apple would have done in the past yep you saw a company that had technology and had infrastructure that you need and could be a competitor so you went and acquired it uh the fact that it came from somebody that was internal in-house and you let it go it speaks volumes because there's a lot of talk especially you know i'm reading like gadget um uh the talk is that the gadget economy the ipad the iphone and the macbook watches yeah that is slowly going to deteriorate and make way for a new form of consumer technology which would be the artificial intelligence assistant.

6:47And so having Johnny Ive there with open AI technology, that first product, I'm interested in seeing what that does to Apple's infrastructure. Because that's what I'm thinking. Like what they're basing on is talking about 50 % of the revenue was coming from an iPhone. Well, if the iPhone is not a thing that people are using in the next five to 10 years, then what's the product? I've been trying to look at it. It's not the thing that we're going to be using in terms of how it communicates and how it functions with artificial intelligence. What is the product? Having the guy that helped develop those things with the technology that's going to lead the future is a dangerous proposition for them.

7:32Well, then also for people, because for full context, because they might not even know what the company is. So IO is a hardware and design firm focused on AI integration devices. And like we said, it was acquired by OpenAI for$6.5 billion. And when you do the stock cash considerations. But it was designed to help build consumer-facing AI products with intuitive, screenless, next-generation interfaces. So there's an actual picture of it. If you want to look on our Instagram, um, cause we posted yesterday, we posted about it on Instagram yesterday. So when he says, when Troy says the personal AI assistant, that's something that Robert Smith has spoke to us about.

8:19Um, and a lot of people have been talking about like at some point in time in the near future, everybody's going to have their own AI assistant that will plan your life. Like if you want to book a flight, If you want to go to movies, you got to pick your son up from school and remind you, you got to call parent teacher night conference virtually. So this, yeah, I guess that'll be the next thing. Now, what we have to see is, will this have some level of communication? I believe so. If it does, then that could potentially be a threat to the eye. And being that he comes from a background of dealing with iPhones, will OpenAI have a communication device, which might be the next iteration of what a phone is?

9:07I think that's what I'm alluding to, is that that next piece of consumer technology, it will cut into that iPhone lead. And maybe it's not a phone anymore. That's why that first product is so important. The fact that this part of it, right, and he probably will never admit to it, but them not coming back, right? Them not seeing him as a valuable asset. Put a chip on the shoulder. It's a chip. And the fact that he did it with a company, right? We talked about Apple AI. Has anybody used it? Has it been efficient? Underwhelming. Right. Look at what ChatGBT is doing on a monthly basis, on a daily basis.

9:48Co-Pilot is getting better. Co-Pilot is better than Apple's intelligence. is yeah i mean microsoft if copilot doesn't get better you still have 50 of this open ai company sure it's sure it was it was a tough week for apple outside of the 25 tariff this hat this news happening it's tough and on top of that it's going to put a lot of pressure on the alexa series too and amazon and i'm gonna say clearly tim cook needs to be replaced for all of you who are going to say, hey, you're going too far. Stop talking. I hate the fact that I'll say these things about the Apple iPhone dominance waning and then somebody white said and y 'all agree with it.

10:30I'm telling you now, Tim Cook needs to go. He can be chairman. Greatest operator in the history of Silicon Valley. I pose the question in Stock Club. I'll ask you guys, who's the better CEO? Tim Cook or an AI version of Steve Jobs right now? hooked up to that blackwell no he they hooked up to ruben like what bro you the vision pro mistake apple intelligence mistake acquisition of open ai mistake you should have that should have been number one priority when sam wanted it for nothing there's too much culture clash of tim trying to be, and I get it, you don't want to be in someone's shadow, but you have to do what's best for the company.

11:19And I don't think that's currently being done. Well, okay. Let's talk about Apple, but just to play the other side of the fence here, Tim Cook's one of the greatest CEOs that we've ever seen. Greatest operators for sure. Apple's market cap soared from $348 billion in 2011 to$3 trillion. Now, that's 14 14X, the market cap, product innovation. In his reign, you got Apple Watch, you got AirPods, Apple Music, Apple TV+. The AirPods came from Steve Jobs, acquisition of Beats. It's under his reign as far as the rise of AirPods.

12:07You know, he's the greatest operator in the history of Silicon Valley. What you're saying is true. Both things can be true. I think both. Yes. In terms of raising the market cap of a company, you're talking about the first three trillion dollar company. Yes. The important pieces inside that is that the guy who helped create those products that helped you raise that market cap is no longer there. And since he's left, what has been the product that has succeeded? And my issue is the degradation of culture at Apple under his leadership. They reduced Steve to fucking theater on campus. The campus that he built, they won't even put up a Steve flag on that campus.

12:48You guys can say that I'm wrong. Not y 'all, the audience at large. But I'm the one who put y 'all in Apple. So maybe, and I've been, I had Apple too at my grandma's house on Guthrie Street. Trust me, I'm right. But y 'all can say I'm wrong. It's fine. what's a better company right now open ai who is not publicly traded or apple all that ecosystem that y 'all love the audience not y 'all was created by steve and johnny as of today i'm still i gotta take apple because it's not probably trade and they don't have a consumer product that's gonna lead the future yes so as of today and that announcement could come but today Open AI also lives off the back of Apple.

13:32In part. Yes. In terms of the device that people are using on. Until Johnny getting that lab. I said last year I think Open AI is going to be one of the greatest companies in human history and it's going to be a top five company for a very short period of time.

13:53Open AI is the behavior. I don't think anybody is going against open AI. It's just Apple is still a necessary company. Yes. I agree. It doesn't mean that leadership change is not needed. Innovation is needed. And it's hard to have innovation when you won't allow the culture. The thing, even though Steve was a hard driver as a leader, he allowed brilliant people to thrive. There are some brilliant people at Apple who I talk to that have ideas that can change a lot of this. Oh, they're being stifled. That glass ceiling. Tough. So, okay. Okay. No, don't put in chat. Listen to me. Listen to me. They need new leadership.

14:51I don't want to say who I think. Put in chat your thoughts. For sure. On Apple. Yo, Ian Trippie, yo. Nah, he said too tech, man. Apple was one. You need at least 25 ,000 shares in something. Like one company could tell me I'm wrong. And I've talked to a bunch of people at Apple who are just afraid that he treat like he should. You could have bought OpenAI for little or nothing. Meanwhile, you got fucking$22 billion parking bonds or whatever. I get the, but the innovation part. We can't ignore that. But you can't run from that fact. The cash reserves are ridiculous. They don't use them correctly.

15:36But they could use them. But they have not. They haven't. And maybe that's part of the leadership prior. It was like, we got to make sure we find the right company to acquire. I think he would be a better chairman. I really do. But having that treasure chest does. It does matter. It doesn't mean that they don't need better leadership. That's fair. Well, speaking of that, and there are real quick, there's some other AI companies that he could buy, but you got to kind of move fast before the valuations. Okay. Apple, if they deploy this right, the capital right could have saved us from the China versus America war.

16:18They're choosing to rest on their laurels and not be on the offense. It's like playing four corners. It works until now you got to make a big shot. Now you can't make a big shot. You don't think Johnny Ive thought through the partnership with OpenAI knowing he can go directly to Microsoft and they have more devices in the landscape than Apple?

16:39We'll see. Operating cash flow of$110 billion. How will the tariffs impact Apple? We talked about this before, but for full context, Trump has threatened tariffs on Apple And he said that he's disappointed With Tim Cook An Apple decision to manufacture in India Which is a workaround from the China situation But he wants it to be all done in America And he's spoke publicly about it He said he wrote them a letter He's threatened to put tariffs on them As an individual company so is the India work around something that could potentially happen is globalization something that is still workable under the Trump administration or do everybody just has to stay in America for the next three years I don't know whatever that that big the Trump wants they just have to pay they call Don Jr.

17:46and get that mastermind membership card go buy you 10 gold cards and maybe i don't know i feel like um he hasn't worked that relationship well enough because trump won't say it but he needs american companies to thrive for him and the mega regime to work over the next 12 years they're not just worried about the next four um elon going back to tesla that is very telling to lose such a monumental piece and then this bill which ends up being a disaster i think um his name is on it so if this bill doesn't go well so at least if he's making these campaign promises he has to at least have one dominant company come back now we talked about it before how long is it going to take for you to build a plant that actually be able to uh create these iphones and then what would the cost be right the idea is great execution is poorly planned and that's my thing in terms of leadership across the more politically and in terms of tech i don't think people are playing it for 10 years i think they're looking maybe two or three years out and it's a little bit short-sighted i think tim cook was doing that too we we talked about this too almost maybe two years ago when they were building the first uh apple store in india and one of the people brought him a gift of the first macintosh computer and that was that was pre uh this this uh presidential campaign that uh trump has been on so they've already looked at it from a standpoint of what is the next space we can now build infrastructure in and instead of maybe having the product now we're just spreading from a global standpoint where india is a market that we can now creep into and see some of those numbers that we're starting to decrease in china start to increase in a new economy but um it's crazy man like like you said the time it would take to get these factories up and running it just wouldn't It wouldn't even be done in his term.

19:36No. It'd have to be five years, almost five to seven years out. So Trump's saying, like, if you build them here, there's no tariff. Yeah. Right? But if you build them in India, we're going to put a 25 % tariff on it. It's insane. I've never heard this be done to one company. Like I said, put it in chat if you know. And he said he had a relationship with them. There was the part where he talks about they had an understanding that he wouldn't be doing this. but if you look at the history of Apple, they were already constructed in India prior to all this. Prior to. So the news just feels kind of, it's like, again I mean, he did tell them, I want you to build here, and I think Tim thought the adjustment in India was okay.

20:16Yep. They said they agreed to the$500 billion investment in AI infrastructure over the next five years, which was the largest out of all of the Mag 7s, or the quote-unquote Mag 7s. They had the largest an accumulation of funds to it. And so on top of that, they're still building the factories. But now, I mean, I think they said they lost over$900 million last quarter. Which is not, I mean, when you have$110 billion.

20:47But you can't keep having a little problem. All the more reason we should have thought of software from Sam. But yeah. This is what happens when you have temperamental leadership. Like at least with a rigid leader or a militant leader, you at least know what cards you're dealing with. they're not adjusting out of three months. I can imagine Tim waking up and then hearing that news because I'm sure he found out on the news and not directly from Trump. It's like, what the hell? I made this investment and now I'm still going to get a tax directly on my company knowing that I can't build that. Like you said, it'll be six years before they are able to build in Chicago or Ohio to get a plant fully functioning.

21:24It'll be in a state where the state tax is going to... Texas is probably the hug. I hope so. The hug. Yeah. Yeah. So what do you think leaving, we're in 2025 now. Are we leaving 2025 with Apple on the chessboard as one of those two tech, two index in the portfolio? It almost, I said it's a stock club privately. Apple will become by 2030 a high value index fund, year over year return wise. An illegal alien from Guatemala charged with raping a child in Massachusetts. An MS-13 gang member from El Salvador accused of murdering a Texas man. A Venezuelan charged with filming and selling child pornography in Michigan.

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