Apple intelligence and AI maximalism — Benedict Evans

🌈 Abstract

The article discusses Apple's approach to generative AI, which differs from the "AI Maximalist" view that chatbots will replace software. Apple is proposing that generative AI is a technology, not a product, and is embedding it in its own systems and features rather than offering a raw chatbot interface. The article analyzes Apple's strategy of using its own foundation models and context-aware features, while outsourcing the "world model" functionality to third-party providers like OpenAI. It also discusses the implications for the commoditization of large language models and the potential shift of inference to the edge.

🙋 Q&A

[01] Apple's Approach to Generative AI

1. What is Apple's view on generative AI, in contrast to the "AI Maximalist" perspective?

• Apple sees generative AI as a technology to be embedded in its own systems and features, rather than as a standalone product or platform that can replace software.
• Apple is proposing that generative AI is a commodity technology, not a platform or product, and is focusing on integrating it into its own context-aware features rather than offering a raw chatbot interface.

2. How is Apple's approach to generative AI different from other tech companies?

• Apple has built its own foundation models and is abstracting the language model away from the user interface, presenting it as features and capabilities rather than a chatbot.
• Apple is separating the "context model" that uses the user's private data from the "world model" that handles open-ended queries, outsourcing the latter to third-party providers like OpenAI.
• This allows Apple to control the user experience and brand risk, while leveraging third-party models for certain use cases.

3. What are the potential advantages of Apple's approach?

• It allows Apple to leverage the user's context and private data to power its own features, which may be more defensible than relying solely on third-party models.
• It shifts the inference and compute costs away from Apple's infrastructure and onto the user's devices, which are paid for by the users themselves.
• It positions Apple to potentially replace third-party models with its own as the technology matures, similar to how features like spell check have become integrated into operating systems.

[02] Implications for the Generative AI Landscape

1. How does Apple's approach compare to the commoditization of large language models?

• The article suggests that large language models are becoming a commodity technology, with no clear winner-take-all effects emerging.
• Apple's approach of embedding the models in its own features and outsourcing the "world model" functionality aligns with this view of LLMs as a commodity infrastructure, rather than a platform or product.

2. What are the potential implications for Nvidia and other hardware providers?

• The article suggests that as more of the inference and compute moves to the edge, on user devices, the reliance on specialized hardware like Nvidia's chips may decrease.
• Apple's control of the software stack and APIs, as well as its own chip design capabilities, could allow it to reduce its dependence on external hardware providers.

3. How does Apple's approach compare to other tech companies' efforts to integrate generative AI?

• The article notes that other companies like Google and Microsoft have been "spraying LLMs all over their products," adding disconnected LLM-powered features.
• In contrast, Apple is proposing a more integrated approach, using a single context model to power features across its ecosystem, rather than adding LLM-based features in a piecemeal fashion.

4. What are the remaining uncertainties and open questions about the future of generative AI?

• The article acknowledges that the product-market fit, use cases, and underlying science of generative AI are still evolving rapidly, and there may be new breakthroughs that change the landscape entirely.
• It also notes that incumbent companies may continue to try to make generative AI a feature within their existing products, rather than a standalone disruptive technology.