00:00This is strategy all over the place, right? As you know, I just upgraded to iPhone 17 Pro,
00:05got the latest iOS. I've gone back to using Siri. I'm reading your reporting,
00:10and it seems like Apple's latest strategy is to say, whichever chatbot the consumer wants,
00:16we'll find a way to integrate it. Give us the details.
00:19Yeah, they're going a bit agnostic here. The idea is they want all the different AI platforms to be
00:25easily accessible from their devices. What that would allow them to do is tap into a new app store
00:31section they're building, and then that would allow them to take 30% or whatever the slice is
00:36that they agreed to with that AI provider to up their subscriptions to the higher end tiers on
00:41those devices. They're going to make money there. This is them doubling down on their hardware as a
00:46platform, doubling down on their services strategy, really slightly bowing out of the AI race here as
00:53they continue to see how this is going to end up developing. And as I reported earlier this week,
00:57they're also working on some new first-party features like that Siri app, the ability to access
01:02Siri from the keyboard more easily. And so they are continuing to push forward there. And as we've
01:08talked about numerous times, they are rebuilding their underlying models using technology from Gemini.
01:14You broke another story about Apple, but what's happening internally with Comp, super interesting.
01:19There seems to be a return to a sort of bonus or incentive structure for the teams that work on
01:27design. What do we need to know here, and what are the kind of numbers involved?
01:32Yeah, one of the biggest issues Apple is grappling with are companies sort of circling it like sharks,
01:39given the AI situation there and the AI crisis they've really been facing. And different companies,
01:45is OpenAI in particular, wanting to poach their best hardware engineering talent. And so what Apple
01:51is doing is trying to respond to that by giving one-time bonuses, RSUs, these vests over four years
01:58to some of the key talent, particularly this week, it was the iPhone product design team within the
02:03hardware engineering group, incentivizing them to stay and not jump ship to OpenAI.
02:09It's difficult to tie those two stories together because, as you've just outlined, the bonuses are
02:14going to the iPhone design team, but the bigger environmental picture is AI talent. What about
02:22those AI teams?
02:23Well, that is AI talent per se. So what OpenAI is doing, they are building hardware. They are building
02:29devices. And as you know, Apple has some of the best hardware engineering talent in the world for
02:35building devices. And so what OpenAI wants to do is they want to marry that fit and finish of Apple.
02:40They want to marry that hardware engineering capability of Apple with their own AI models
02:45that they consider industry leading. And so bringing the two together would be extremely powerful. And so
02:50they are going after Apple talent. They've been poaching several dozen people, I would say even a month
02:57over the last half a year. And don't forget, the hardware engineering group at OpenAI
03:01is run to the people running it used to run hardware at Apple. So it is a pretty interesting situation
03:08right now.
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