Came here to say pretty much this. Hardware seems more valuable than a model.

I think AI could be commoditized. Look at DeepSeek stealing OpenAI's model. Look at the competitive performance between Claude, ChatGPT, Grok, and Gemini. Look at open weight models, like Llama.

Commoditized AI need used via a device. The post argues that other devices, like watches or smart glasses, could be better posed to use AI. But...your point stands. Given Apple's success with hardware, I wouldn't bet against them making competitive wearables.

Hardware is hard. It's expensive to get wrong. It seems like a hardware company would be better positioned to build hardware than an AI company. Especially when you can steal the AI company's model.

Supply chains, battery optimization, etc. are all hard-won battles. But AI companies have had their models stolen in months.

If OpenAI really believed models would remain differentiated then why venture into hardware at all?

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rickdeckard 3 days ago | parent [-]

Moreover, Apple owning the access to the device-hardware AND to the data those models would need to create value for an Apple-user makes the company even more robust.

They could manage years of AI-missteps while cultivating their AI "marketplace", which allows the user to select a RevShare'd third party AI if (and only if) Apple cannot serve the request.

It would keep them afloat in the AI-space no matter how far they are behind, as long as the iPhone remains the dominant consumer mobile device.

The only risks are a paradigm shift in mobile devices, and the EU which clearly noticed that they operate multiple uneven digital markets within their ecosystem...

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bigyabai 3 days ago | parent [-]

"The only risks" lol. Tim Cook thought those were the only risks to the App Store too, now look where he is. You lack imagination.

What if [Japan|EU|US DOJ|South Korea] passes a law preventing OEMs from claiming user data as their property? If Apple really tries to go down the road of squeezing pre-juiced lemons like this, I think they're going to be called out for stifling competition and real innovation.

	▲	ericmay 3 days ago \| parent \| next [-]
		Go further - what if those entities pass laws preventing Meta, or Google from claiming user data as their property? Or even the AI companies that are siphoning content from the web.
	▲	rickdeckard 3 days ago \| parent \| prev [-]
		True, I should have framed it wider: "If any of those anti-competitive shenanigans are identified as what they are"