Apple’s WWDC 2024: Reactions, Highlights & Breakdowns with Jason and Alex | E1964

24:13So we're integrating them right into your experiences. And we're starting out with the best of these, the pioneer and market leader ChatGPT from OpenAI, powered by GPT4O. First, we built support into Siri, so Siri can tap into ChatGPT's expertise when it might be helpful for you. For example, if you need menu ideas for an elaborate meal to make for friends using some freshly caught fish and ingredients from your garden, you can just ask Siri. Siri determines that ChatGPT might have good ideas for this. asks your permission to share your question, and presents the answer directly. You can also include photos with your questions.

24:53If you want some advice on decorating, you can take a picture and ask, what kind of plants would go well on this deck? Siri confirms if it's okay to share your photo with ChatGPT and brings back relevant suggestions. It's a seamless integration. In addition to photos, you can also ask questions related to your documents, presentations, or PDFs. We've also integrated ChatGPT into the system-wide writing tools with Compose. You can create content with ChatGPT for whatever you're writing about. Suppose you want to create a custom bedtime story for your six-year-old who loves butterflies and solving riddles.

25:28Put in your initial idea and send it to ChatGPT to get something back your love. Compose can also help you tap into ChatGPT's image capabilities to generate images in a wide variety of styles to illustrate your bedtime story. You'll be able to access ChatGPT for free without creating an account. Your requests and information will not be logged. And for ChatGPT subscribers, you'll be able to connect your account and access paid features right within our experiences. Of course, you're in control over when ChatGPT is used and will be asked before any of your information is shared. ChatGPT integration.

26:06People don't trust OpenAI. iPadOS 18 and macOS Sequoia later this year. We also intend to add support for other AI models in the future. Okay. So there's a lot to unpack here. You and I were both going ooh and ah during this. I think the biggest ooh I got from you was, hey, this is free. Put in here and you can connect your paid account if you want the most elite features. That seems notable. Yeah. Absolutely. I mean, one thing we have seen is AI products and services cost money. Why? Well, because the compute costs are very high. So I think there's been a expectation setting by Microsoft and OpenAI and others that if you're going to use computationally complex AI models, you're going to have to pay some money for it, which is different than the old web advertising base, etc.

26:52So if Apple is going to work with OpenAI to offer ChatGPT to let's just say a billion iPhones, whatever the number is, and even 10 % of those people use it once a day, it's 100 million queries, a couple of pennies each adds up to a material amount of money. So Jason, the question that you and I are both asking is, where is the money flowing in this relationship? Who's paying for this? Who's paying for this? And how much are they paying for it? Because we recently learned how much Google pays Apple to be the default provider, but OpenAI is not going to pay Apple to take on the compute cost to be the default backup option for AI.

27:25So Apple has to be paying OpenAI, which means ironically that now Tim Cook is paying Satya for AI on your iPhone. Oh, tell me why. I don't think so. i think apple probably shopped this okay and said whoever wants to launch first you got to pick up the tab you're picking up the tab so it's pay it's in a way it's pay to play even though they're not paying money but i do think this is going to wind up being the google search deal so the default apple's going to look at this as a revenue generator and so now you got chad gpt Gemini and even like xai Claude you know an indie could all pay for carriage to get people to use their lm and to be the default and defaults matter right so you can change your search engine on your safari nobody does 99 of people leave it at google and google pays billions of dollars a year to apple and it's pure profit for them i think they're going to look at this like who's the default the same way.

28:24High is better type situation is my guess. But Google gets so much revenue from that relationship. It pays for itself several months. I would think you have some profit margin. Yeah. Oh, absolutely. You don't, you don't pay tens of billions a year to not make money, but with open AI, does it have the same near-term revenue potential? The opposite, as you pointed out, it's going to cost you money to start. So you, this is a way, this is what AOL did in the early days. They were like, yeah, that's your problem. You want to be the number one player you want to be the hot shot pay us and we'll we'll send you all our users we got 40 million 50 million users we'll send them to you but you got to pay us and so i'm sure that's apple's approach which is hey this is your problem you figure out how to monetize it and i guess the monetization path would be prompting you hey would you like the most recent version we'll get you a sub and saying put your credentials in so maybe you could figure out a way to do it i might guess google's margin on the apple search deal is very low but it blocks competitors so open ai super aggressive sitting on a ton of cash i'm sure sam walton was like you know what we got to make this work to block some other claude coming in here you know or xai or or you know facebook or somebody but you can be sure that they said multiple times that this was swappable hot swappable for a reason they want to create a marketplace and then it would just be like your browser pick your browser pick your search engine pick your mail client pick your maps pick your music it'll be a setting pick your GPT, who's your default GPT, but who's the default by default is going to be pay for play.

29:53It's, and they did great examples here. I think this should be nerve wracking. You start thinking about what is Microsoft thinking right now? Okay. Cloud computing has revolutionized startups over the past decade. You know that, but the reality is a fully cloud-based solution is not right for every startup. Sometimes a hybrid solution is your answer. Like if you're working with sensitive data that can't be trusted to the cloud, or if you need to connect to multiple cloud providers at once, or maybe you just want a much more cost-effective solution. In that case, you need to check out Equinix. Equinix Metal will give you direct access to physical servers, but you still get all the benefits of the cloud.

30:32So no need to rack and stack your own servers. No. Equinix provides on-demand infrastructure in over 25 major cities. And here's the best part. They have an amazing startup program for you. The Equinix startup program offers personalized consultations and guidance from the Equinix team. And of course, you'll get up to$100 ,000 in startup credits. So here's what I want you to do. Head to equinixstartups.com to apply. And when you apply, James from Equinix is going to reach out to you directly. That's equinixstartups.com to apply. E-Q-U-I-N-I-X startups.com. Well, Microsoft is thinking, well, we put all this money into open AI.

31:10Now they're working with Apple and making Apple look fantastic on the mobile OS that we don't have. So instead of OpenAI being a lever to get Tim Cook's money into Satya's pocket, it's actually they put money into OpenAI to give more money to Apple, which has got to feel slightly strange over in Redmond and may explain the tensions between OpenAI and Microsoft. I mean, no conflict, no interest. Here you go, folks. The technology makes for strange bedfellows. This is getting weird. And Sam is playing it perfectly. You know, you got there's a lot of complaints about sam from the previous board i don't know if you saw that clip or the like and it was i kind of nailed it remember i said on the show like i know i said it on all in or here or both but i said you know i think it's the vc arm that he started on his own and all that deal making that probably upset them and it turns out the woman came out and it's like yeah you know this vc arm like we don't even know about that we don't know what what this guy's doing he's a consummate deal maker he was there this morning somebody uh took a picture with him and send it to me and said he was at the announcement.

32:04He's working all angles, all angles constantly. And so here we are. He's got a Microsoft deal. He's got an Apple deal. Yeah. And also really big Apple billing because Apple doesn't spend a lot of time talking about your company, your product, your brand name. But did you see how much branding they gave them? I was going to bring that up. Not only did they say OpenAI, they called them the industry leader. They gave them their flowers and they said, powered by ChatGPT and powered by the specific 4.0 model. Yes. I mean, that is like from a level of effusement that Apple does not normally do. So that was carefully negotiated.

32:42But one thing they also highlighted during the clip was when you want to use ChatGPT, it's going to be super opt-in. Do you want to send this out to ChatGPT? Yes. Yes. And this goes back to our point about privacy from earlier. Apple is actually sticking to that thus far from what we've seen. and that makes me more confident in its overall approach to things hey there he is he's there the man himself yeah i'm doing deals he i mean he'll do a deal with anybody you know what you don't love about sorry go for it no no just hey like palm os want chat gpt we got you you want to put it in your uh nokia phone we'll put it there too man he's he wants that distribution he he took good notes coming up you want to talk to that refrigerator no worries we got no worries the thing about sam allman though you know like jeff bezos has now gotten super jacked and wears sunglasses he looks on you know sam allman still looks like the same old nerd and i think that that's gotta be a deliberate affect because you see him and you're like this guy can't be skeletor this guy can't be the superman no i think he's i think he's kind of like a bond villain like a like a wavy like you know super brained bond villain who can cut any deal like he's got this like um very um like understated power broker kind of thing i'm trying to think of like who in the cinematic universe is not like physically intimidating like the hulk or galactus but is intimidating because they're clever who's clever and intimidating that'd be lex luther no lex is uh bald and large and kind of like kind of brooding yeah so less so i don't think we have that many examples of someone who ends up with that much power and money and ends up still looking like a guy that's going to like fix your iPhone screen down the street.

34:28Sure. Yeah. Working at the genius bar. Actually, that would be someone should do that Photoshop because I think that would be a direct hit. Okay. So there's a lot more to talk about that. I want to grab the image playground clip to show people what else Apple has up its AI sleep. Image playground. This is a It's a new way to create playful images in just seconds. It's so easy to use, and we built it right into apps like Messages. To get started, you can choose from a range of concepts like themes, costumes, accessories, places, and more. When you select them, they get added to your playground.

35:05No need to engineer the perfect prompt. In a few seconds, you'll see Apple Intelligence creates a preview of what your image could look like. A moment later, you'll see more previews you can swipe through. This all happens on device, so you have the freedom to experiment and create as many images as you want. This is great for quickly responding to your friends with just the right image. When you have a really specific idea in mind, you could just type a description to add it to your playground. And you can easily adjust which style you want to use. Ooh, very nice. And choose from animation, sketch, or illustration.

35:42Whichever suits the vibe of your conversation. If you change your mind along the way, no problem. Just switch back and you'll see your previous previous. Very well done. It's that simple. Since Apple Intelligence understands your personal context, you'll see suggestions for concepts related to your messages conversation, including you and people from your messages thread. When selected, it uses appearances from photos to add you or one of them to the image you're creating. Wow. Wonderful. Wonderful. So I want to say that you're giving this a more positive review than my emotions. So let's start with the positive vibe here.

36:17There was a lot of you going, ooh, when this was on. So what did you like? Yeah. So the reason I like this is I think Apple always takes things that are complex like Dolly or stable diffusion and all this complexity, and they reduce it down to something that people can actually use and get some joy from. And so what I liked about this was the ooh and ah for me was they're watching the context of our messages and you know mom and dad are talking with their two kids and they're talking about hey we're going to do a rooftop party for the birthday and so now it knows birthday rooftop and somebody says sushi and somebody says lobster roll somebody says sunset and it starts making this image in real time and then you click to send it's like it's really simplified and dumbed down the process of creating it so instead of writing a prompt i you're an artist i would like you to make me an image in a cartoon style of a rooftop at sunset with lobster rolls and sushi it's just like let's just make this super easy you don't have to write a prompt here's some keywords boom swipe through the animation styles and go so it's just reducing it down to something that people will get simple joys from so it's not as industrial strength as using dolly and chat gpt4 or stable diffusion you know in your own instance and whatever.

37:35But it's enough that a billion people would instantly know how to use this and have creativity in the way Instagram made filters accessible to everybody. And before that, you could do those filters very easily. Not very easily. You could do those filters for a decade in Photoshop, but not easily. So I love when somebody takes something complex and joyful and makes it effortless and joyful because more joy is then spread. I like that you took every single thing I was going to say that was negative about this and distilled it down to human joy. And therefore, I look like a Grinch now because I was going to say, this looks done down.

38:09This is not industrial strength. This is a little too cutesy. It's so much like, here are the three styles you can have. Because you know, Apple is like Pixar. When you put on a Pixar movie, you know it's going to be PG. And Apple has made the PG version of Dolly here. And I was thinking, my parents will love this. I can see them. My dad loves ChatGPT, but he's not going to go mess around with different image prompt things to draw a McLaren sports car, right? I can see them using this. But to me, that's kind of why I wish for something more because to me, I've already seen the powerful tools that are out there, but your point about joy and it being accessible, I can't refute.

38:46That's solid. You know, it's kind of like Apple Pay. You ever send somebody money in Apple Pay? It's like you're in a chat and you're like, you click the Apple Pay button and it gives you a slider and you're like 20 bucks and you hit send and the 20 bucks is in there. You don't open Venmo. You don't have to open PayPal. You don't have to open an account. You don't have to scan a QR code. They're just geniuses at abstracting away the friction and making something super simple. And so I applaud them for that. And the first real experiences people have with generative AI will come from Apple, not ChatGPT.

39:17That's really interesting because I feel like we've already gone through a couple of waves of getting people onboarded to ChatGPT. 100 million. No, that's 100 million monthly users. right i mean it's 200 million or 300 million out of 5 billion people online so they've probably maybe five to ten percent of people have been exposed in earnest to ai and now it'll be up to google facebook and apple to bring and microsoft to bring it to them in a dumbed down here's how you can actually use it because we've been tinkering with the stuff but man we're so under the hood with it and having to jimmy rig it and and yeah finesse it that like okay let's simple it down you want to make an invitation for a birthday party you know like the can there's canva and there's figma like you get in figma you can design an entire app with a team of 200 people in 10 different offices in five different languages or you go on canva and you can make something really simple and have the birthday party invite out and the poster done you know within 10 minutes so and both companies super successful like they're there you can segment the market yeah i can see it yeah i think apple's nailing this and there were a couple of other announce we got a wrap because we're going so long here but a couple of announcements i just wanted to point out that i thought was really interesting there they have a password app now so if you use apple password manager it's buried in your settings you can go find your passwords in there but now i think they're they've got a proper app which means they're going after one password last pass and these other great companies that we all use it's not an enterprise solution but i think this is great for mom and dad and your cousins to have a password app finally right so I did like the password app being a standalone app.

40:52You see that sometimes Apple takes something that's, you know, kind of trapped in your settings and then makes it into a bigger thing. The podcasting app was trapped inside of iTunes, then they made its own podcasting app based on a company, Swell, that I was an investor in that we sold them. I think that's like a nice moment and adds value. There was another Apple TV. I don't know if you're a fan of Apple TV, but I believe it's Amazon because they own IMDB. They do this really great thing when you're watching a tv show and you're like who's that person yeah if you click the information button it tells you and then you can click and see all their credits i love that as a person who loves directors and film and tv shows they've added that inside of apple tv it's called insights but so again it's something that's existed for a long time but if you have apple tv you don't see it and i don't know did you see the thing about voice levels i did okay talk about that this is okay so there's two kinds of people in the world people who have subtitles on and absolute bloody heathens and i think that we've become so uh readily accepting of subtitles because a lot of modern media netflix often has audio levels for voice that are too low compared to the ambient volume in the background music sound effects whatever so what they've done here as far as i understand it i watched this live so don't cut me to pieces everybody but i think now there's going to be a setting inside of apple tv that lets you essentially take just the people talking and boost it.

42:15Yes, I still want subtitles. But now I'll be able to actually understand things. And if you are someone who is hearing impaired, I bet you this is going to be an absolutely revolutionary feature. So it's accessibility as well, which is good. Because a lot of folks out there have hearing loss for one reason. I have a little hearing loss in one of my ears. I'm in a very small range, I got to test it. It happens to be the ear that I listened to my wife with. Sometimes I don't hear what she says. That's our internal joke. But no, it's seriously, It is my left ear, and sometimes I turn my right ear to get a little bit of extra fidelity.

42:44But you do have this issue where whatever's going on with the sound mix in Game of Thrones, or pick a hit show, there's a lot of dragons. There's a lot of names and locations that you're trying to follow along with, and then they're blowing everything up. And it's loud, and you can't hear the dialogue. So you are required to put the subtitles on, and this is what everybody wants. Lower the explosions. i know you sound lunatics who do sound design for movies love your explosions and sound and whistles we need to hear the dialogue because on the other side the screenplay writers and the directors are making these things more complex so it's almost like two sets of artists are colliding with each other the sound design people and the fx people want to make this thing like just a visceral experience for you like it's a born on the fourth of july or full metal jacket things are blowing up everywhere and then the other side you want me to remember 25 different characters and where they're from and where they're going and you're naming things you know westeros i always wait who's westeros oh no that's a place okay you know you're trying to i need like a menu of the characters the people places and things just to follow these shows i love this idea this is a very apple feature we know people are having a problem we're solving the problem i could tell that this was going to be amazing.

44:04I knew you were going to pick up on it. I'm super excited. And I really do hope that everyone out there in the world of streaming media goes, okay, this is now table stakes. Now we have to record audio so that this is possible. We have to offer the feature. Please God, everybody do this. This is going to be so consumer friendly. And you're right. It is a distinctly Apple feature because it takes a thing that everyone struggles with and just says, we're going to fix it for you and hand it to you. No thought required on your end. Just use it. And I've got to be more of the show. Right? So this has got to be done with AI, which is what they've been using in the AirPods.

44:38They showed AirPods doing even better sound isolation. That's all done with AI. So congratulations on just making life a little bit easier. There's RCS. Can you explain to the audience what this is and why it's important? Yeah. So if you're not familiar with RCS, it's Rich Communications Services. It's essentially iMessage for Android. And as we all know, there's been a big battle between the green bubbles and the blue bubbles. Sometimes people say that if you don't have an iPhone, you're sending out the wrong kind of bubbles. It's a poor signal, perhaps for your social group or your business community.

45:08Yeah, breaks the group. Yeah, breaks the group. I mean, welcome to my family's group chats. That's why we have 47 across. It's a hot mess. So by supporting RCS, which Apple announced is going to come in iOS 18, the next version, hopefully some of the fractiousness of group chats across mobile OSs will be solved. Jason, they gave it like 0.5 seconds of airtime. They're like, and RCS is coming in iOS 18. Okay, moving on. Like they really didn't stress it. I think because they didn't want to do it. They wanted you to buy an iPhone and get off of Android. But because they're finally going to bend to consumer requirements and do this, I think it's great.

45:41I also love watching them Apple it by just throwing it out with the trash as they announced it. And I think this might get them out of some of these antitrust issues. Lena Khan has future competition as one of their issues. But of the sub issues that I am focused on, I think interoperability and openness of stores and messaging platforms. I think this is where, you know, when people do unfair tactics to try to reinforce a monopoly position or a duopoly position, that's where I have problems. And so I think this is like a super important, but very quiet thing. It also helps them, I guess, with satellites.

46:15Did you see that? That they're going to be able to get SMS messages via satellite and you'll be able to do the tap backs. I know Elon's working on that as well. I mean, I'm torn. That was a question that I had. Whose satellites is Apple going to use? Because they have to have... Low Earth orbit. They have to be LEO. first of all. And then two, they need to be everywhere because the whole point here is you're off the grid, you're in the mirror woods or whatever. And so I'm really curious who they're working with. Though Apple is one of the companies out there who could afford to have their own satellite network.

46:45Sure. They might not want to take on that complexity. That's tough. You have to have stations and - There was a rumor for many years that Apple would buy their own carrier. Now, of course, some people might have problems with that, like governments, but you know buying t-mobile or verizon or something is well within their ability in terms of cash position and it would be very interesting if they abstracted the cost of your phone and the cost of all the services but i guess there's enough competition they didn't feel the need to do that so that's going to be interesting i i'm kind of torn i kind of like the fact that there are some places on earth where you can't be reached and that's kind of cozy and delightful when i went on my rafting trip to actually be not able to get sms messages but here we are yeah that that's gonna that's gonna end that's gonna end i want to bring up i know we need to end but like i want to bring up one more thing about this event because if you tuned into the live stream it started off incredibly slow they were talking about widgets on ios and the new settings you can use i just wanted to scream it's like watching microsoft go like and here's control panel and windows 12 you click this button like i don't care it ended with a bang But to me, the AI stuff that Apple announced is so needed because the rest of it was kind of snoozy.

47:57And so to me, I think we reached the end of the last iteration of iOS, macOS, and so forth. They finished it. Thank God there's a new chapter or a new book in this series, because otherwise we will be bored to pieces. I think this is going to start by showing the use cases and what's possible. Then they're going to say, you know what? to really do this well, to really make that image creation fast, to really write good stuff, to have your privacy, to be able to search your photos and do all this cool stuff. We're just going to need you to have an M4, you know, like these new features, you need the M4 or M5.

48:32And, you know, they're just going to force us to upgrade. And they're going to say, you know what? And you got, you had a, you know, one terabyte, probably should have four terabytes of storage to really make this work. And you might need an extra chip set. And so congratulations to them. they're going to keep the upgrade cycle going, which is always what this is about, is antiquating the previous hardware cycle and giving you a reason. And maybe even you need more battery. Maybe this is going to burn a little hotter, get you a little more battery. So great, congratulations to them. And I think it makes them a screaming buy.

49:02I see some folks say, Elon says he's banning iPhones of opens AI is native in the OS and visitors have to check at the door what do you say yeah there's they've already made it very clear that any data this is not built into the core here and you're gonna have to like every time it's kind of like sharing location or your photos already they do such a great job it's almost you know they're doing a good job with permissions if it gets annoying so like yes i want to let ways use my location it's like it use your location 60 times in the last 48 hours and i'm like oh okay only when using the app Like they've done a really good job of training me.

49:42It's like, do you want Signal to have all of your photos? I'm like, no. It's like, do you want them? Do you want to select some additional photos from choose? I'm like, yeah, I'll do it one at a time. I love this kind of stuff from Apple. So yeah, no, I don't think that's going to be an issue here. Apple's too savvy for that. Apple's too savvy. They're smart. And as the last thing, I almost forgot the most important bit of news in this entire event, which is that finally, ladies and gentlemen, there's a calculator app natively on iPad. They've finally done it. I've been waiting for this. And it's a really cool app because it lets you draw equations.

50:11And so it's kind of got like a little bit of Sal Khan magic in it. You can draw. If you put equal, it starts solving the equations with AI. That's really slick. Really, really slick. Really well done, Apple. It took you only 12 years to release a calculator app, but you found a reason to do it on the iPad, which is, you know, using the pen to draw equations. It's going to help a lot of kids do math. So I like it. I love it too. I'll have a lot of kids cheat on their homework, which is why I am not buying an Apple Pencil Pro for my children because I want them to do it. Maybe this was good. We're going to have to look at the chalkboards in the house to prove that they can actually do the math versus having to solve it.

50:51Though we have Wolfram Alpha and people still do math. So maybe I'm being kind of a Luddite here. But I like the idea of having both. I like the idea that you got the chalkboard, you get that nice feel. You got to erase it, you know, a little acoustic, but you could also play electric, you know? So like learn on the acoustic guitar, upgrade to the electric, maybe get some good licks in and anything that does adaptive learning, I think is critical. You know, the reason our generation, really, there was a great variability between the wordsmiths and the math wizards and, you know, everything in between kinesthetic people who specialize in sports is you, whatever you showed innate ability in during your educational years, they reinforced and they kind of put you on a track.

51:31There weren't enough teachers to adaptively say, you know what? You are terrible at chess. You lost your first three games. Let me go slower. You obviously missed the pawn movements. Let me explain to you the center of the board. And now with adaptive learning, you know, when I play chess, you can replay a game and it gives you like, here's your mistakes. Here's where the better move is. You would have to hire$100 an hour,$50 an hour coach to do that. Yeah. The fact that a coach is built into everything and adapts to your learning style and your learning pace and your weaknesses like i had chat the chess app um explained to me like where bishops go and i was like oh i didn't even think about the i could tell you where knights and quants and everything go but i just it just taught me like a very simple thing i didn't understand about bishops changed my game boom rating goes up 10 wow so there's all those opportunities and that wasn't ai that was just me stumbling into a micro lesson inside of there mm-hmm it's the domain name micro lessons.

52:29When I use the chess.com app, what it says is, dear Alex, you're so bad at chess. I'm not even going to give you advice. Please bounce and never come back again, which I think is quite insulting. I think it should be nicer to me. I'm trying to learn. I think we got a wrap. Yeah. Anything else? No, I think, you know, we had, there's a really important story I want to talk about, but I'll save it. People know we've covered this. Was it fearless or fierce founders story? I think the fearless fund. Fearless fund is a fund for black women. by black women to kind of bridge the gap because black women get the lowest amount of venture of any group.

53:04And there's been a lawsuit about this and they've got an injunction against them because it's illegal to discriminate against people in the United States. It is a such a complex issue. I have a lot of thoughts on it. I want to try to bridge with you, Alex, trying to make the world a better place and trying to make the world a better place because both people are coming to it, trying to make the world a better place, but they're seemingly incongruous. So look it up online, everybody. We'll address it on the next live episode. He's Alex. I'm Jason, at Alex, at Jason. I want you all to participate in the docket.

53:33You find a story, you want us to talk about it, boom, get in there. We're going to be launching the Twist 500 this week. Go to ticker.thisweekandstartups.com. Sign up for the email. Alex has taken that over. We're going to reinvigorate it with our process over the next year. We're going to take a year to do this of naming the top 500 private companies in the twist500.com. See you next time. Bye-bye. you