Apple's Bold Move: Avoiding The AI Arms Race
Summary
- Apple's decision to sidestep the AI arms race is a winning move, especially considering the costs associated with building frontier models.
- A sharp focus on local, on-device AI systems will allow Apple to capture far greater value in the long run.
- Frontier models are continually fighting for Apple's business and have been willing to give Apple extremely favorable terms.
- Apple's decision to avoid the AI arms race does come with the major downside of having to rely on third-parties for the most performant models.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.