I think of the most interesting aspects of Apple and AI is the fact that they will use OpenAI's models. I used to think that OpenAI would like to compete with

I think of the most interesting aspects of Apple and AI is the fact that they will use OpenAI's models. I used to think that OpenAI would like to compete with Apple one day by changing the entire OS into a giant LLM. We got a hint of this when ChatGPT was big on its 3rd party apps and Function Calling. They may still have that goal but it's not realistic in 2024. But in the mean time, they have to compete with Google because Google can/will integrate their LLM models directly into Android - which means billions of people worldwide will use Google's LLMs. OpenAI needed a way to compete. It makes a ton of sense then that OpenAI would partner with Apple to distribute their models into billions of devices instantaneously. Apple also needs OpenAI because they're probably many years behind. For Apple, I assume they will get OpenAI's models directly instead of calling OpenAI's API which runs on Azure. Apple will likely need to build its own AI infrastructure to inference OpenAI's models for its billions of devices and they'll likely to market it with privacy features that ChatGPT don't bother with right now. I suspect that Apple will integrate smaller LLM models that can run on a tiny iPhone SoC NPU and make them free. Then they'll charge for Apple Intelligence Pro that does most of the inference in the cloud. One of my questions for Apple, if my speculation is correct, is how are they going to launch a service that inferences a model as large as GPT4 for their billions of devices worldwide? They didn't invest in server NPUs like Google did with their TPUs. They can't buy nearly enough Nvidia GPUs because they're supply constrained. They can't possibly use M2 Ultras because it's suboptimal for AI inferencing and very expensive to manufacture (134 billion transistors & glue 2x Max dies together). Perhaps Apple will only launch the service in the US first and charge a subscription for the GPT4-backed AI features. I don't see any other way Apple could scale so quickly. I did not think the Apple/OpenAI marriage would happen but it makes a lot of sense for both companies after some thought.