If Nvidia stumbles, pay attention to Apple


Apple has more than a billion devices in service. Could all those equipped Apple devices quietly become the largest distributed compute network on earth? — Photo by Laurenz Heymann on Unsplash

Today, ChatGPT and Claude feel like permanent front doors to AI. The assumption, or the narrative, until recently has been that intelligence will live in the cloud, and the winning bet is data centres, power, and Nvidia chips.

I think that belief is about to meet a new reality.

The sleeping giant

The data centre investment thesis is not going away, but the assumption that it would capture the entire AI market is flawed.

Apple’s M5 and A19 chips are powerful and energy-efficient. And Apple has developed architecture for both on-device AI models and smaller language models, and what it calls “private cloud compute.”

In a June developer conference announcement, Apple notes “the on-device model is optimised for efficiency and tailored for Apple silicon, enabling low-latency inference with minimal resource usage, while the server model is designed to deliver high accuracy and scalability for more complex tasks.”

But let’s speculate a bit further.

Apple has more than a billion devices in service. Could all those equipped Apple devices quietly become the largest distributed compute network on earth?

The real AI war is personal

This is not ChatGPT versus Claude. It is not Nvidia versus AMD. The real war is for the personal AI that lives with you – the AI that knows your schedule, your tasks, your habits, your photos, your life. The AI that sits on the device you unlock dozens of times per day.

And that gives Apple an advantage that is already installed in the world.

Apple controls the silicon, operating system, security, and user experience in one integrated stack. It has unified memory for larger models that run on-device. And users already trust Apple on privacy.

Sam Altman sees this coming

This is why OpenAI paid Jony Ive US$6.5bil (RM26.9bil) for his company. Sam Altman understands that the only way to win the AI era is to live where the user lives: in the hand, in the pocket, inside daily life. He is not just building models. He is trying to build another AI phone.

Think Android with better taste – and yes, Google could try to follow this same model. But Google will not have the silicon Apple spent a decade perfecting.

Apple already built the chips. Apple already controls the stack. Apple already shipped the devices. OpenAI is racing to build a device to compete.

We will soon see how that plays out. – Inc./Tribune News Service

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