OpenAI’s GPT-4o release 'could spell trouble' for Apple and Google, strategist says

Yahoo Finance
14 May 202408:17

TLDROpenAI has recently announced a new flagship chatbot model, GPT-40, which has raised concerns about its potential impact on tech giants like Apple and Google. The unveiling of GPT-40 coincides with Google's IO conference and Apple's WWDC, suggesting a strategic move to influence the competitive landscape. Patrick Morehead, CEO of More Insights and Strategy, discusses the implications of this development, noting that while the technology is promising, its adoption has been slower than expected. He also highlights the risk that if Apple and Google do not adapt, they could face challenges from OpenAI's growing user base. Morehead suggests that Apple may need to partner with or align with OpenAI to remain competitive, especially in the area of on-device AI. Additionally, he speculates on the possibility of a deal between Apple and OpenAI, which could involve cloud-based services and a potential relaunch of Siri. The discussion also touches on ARM's potential involvement in developing AI chips, with Morehead suggesting that licensing intellectual property for AI accelerators is more likely than ARM creating physical chips.

Takeaways

  • 🚀 OpenAI has unveiled a new flagship chatbot model called GPT-4o, which is smarter and faster, potentially impacting the competitive landscape of tech giants like Google and Apple.
  • 📅 The timing of the announcement is strategic, coinciding with Google IO and shortly before Apple's WWDC, indicating a move to challenge these tech leaders.
  • 🤖 GPT-4o integrates voice, images, videos, and text in a humanlike interaction mode, which could redefine the user experience for intelligent agents or assistants.
  • 🧐 Despite the hype around GPT models, their widespread impact on daily life and corporate integration is still unfolding, with many waiting for the 'revolution' promised by the technology.
  • 📈 The adoption of new technology is often slower than initially anticipated, with consumer and business uptake lagging behind the initial excitement.
  • 📱 For tech investors, the increasing use of OpenAI's chatbot could pose a risk to established tech giants if they do not adapt or partner with innovators like OpenAI.
  • 🔍 There is speculation about a potential partnership between Apple and OpenAI, which, if realized, could have significant implications for both companies and their competitors.
  • 💰 OpenAI's business model could involve multiple monetization strategies, including service payments, advertising, and referrals to profitable companies, posing a risk to current market leaders.
  • 📲 The importance of on-device AI for Apple is highlighted, as their strength lies in the integration of technology into their hardware, rather than cloud-based services.
  • ♟️ There is a possibility of a relaunch of Siri, Apple's voice assistant, at WWDC, potentially incorporating generative AI and support from OpenAI.
  • 💡 ARM's potential involvement in developing AI chips is discussed, with a focus on licensing intellectual property for AI accelerators rather than selling physical chips.

Q & A

  • What is the significance of OpenAI's GPT-4o release in the context of Google and Apple?

    -The release of GPT-4o could potentially disrupt the dominance of Google and Apple in the AI and voice assistant market, as it offers a more integrated and humanlike interaction mode combining voice, images, videos, and text.

  • How does Patrick Morehead view the timing of OpenAI's announcement of GPT-4o?

    -Patrick Morehead suggests that the timing is strategic, coinciding with Google IO and shortly before Apple's WWDC, to make both companies and their advertisers consider the implications of this new model.

  • What is the current adoption rate of AI like GPT-4o in everyday life and business?

    -While there has been significant interest and some integration in Corporate America, the widespread adoption and transformational impact of AI like GPT-4o in everyday life has yet to be fully realized.

  • What are the potential risks for Google and Apple if they do not address the rise of OpenAI's GPT-4o?

    -If Google and Apple do not adapt or collaborate with OpenAI, they risk losing market share to a service that could potentially monetize user engagement through various means, such as service payments, advertising, or directing users to profitable chatbots.

  • What is the likelihood of Apple partnering with OpenAI, according to Patrick Morehead?

    -Patrick Morehead estimates a 50-50 chance of Apple partnering with OpenAI, potentially in the form of cloud-based services, to improve their on-device AI capabilities.

  • What are the implications for Google if Apple were to partner with OpenAI?

    -Google could face increased competition if Apple were to integrate OpenAI's advanced AI capabilities into their devices, potentially leading to a shift in user preferences and market dynamics.

  • What does Patrick Morehead think about the potential monetization strategies for OpenAI's GPT-4o?

    -Patrick Morehead suggests that OpenAI could monetize GPT-4o through service payments, advertising, or by directing users to other profitable services, posing a risk to established tech giants like Google and Apple.

  • What is the current state of Apple's on-device AI capabilities, according to Patrick Morehead?

    -Patrick Morehead believes that Apple's current on-device AI capabilities are not as sophisticated as they could be, with strengths mainly in backups and streaming media, and that Apple needs to improve in this area.

  • What does Patrick Morehead predict for Siri at Apple's upcoming WWDC?

    -Patrick Morehead predicts a relaunch of Siri at WWDC, potentially incorporating generative AI and possibly some assistance from OpenAI, to enhance its capabilities.

  • How does Patrick Morehead assess the credibility of the report that ARM is going to develop AI chips?

    -Patrick Morehead gives low credibility to the idea of ARM creating and selling AI chips directly but believes it is highly probable that ARM will license its intellectual property for AI accelerators to companies like Apple, Qualcomm, and cloud service providers.

  • What does Patrick Morehead think about the current investment bubble in AI technology?

    -He likens the current state of AI technology to the beginning of an investment bubble, where there is a rush to show off capabilities and get people excited, followed by a potential trough of disillusionment as the technology takes time to be widely adopted.

  • What is the importance of on-device AI for Apple, as mentioned by Patrick Morehead?

    -Patrick Morehead emphasizes that on-device AI is crucial for Apple, as the company's strength lies in its devices rather than cloud-based services. He suggests that Apple needs to focus on improving its on-device AI to stay competitive in the market.

Outlines

00:00

🚀 OpenAI's New Flagship Model: Chat GP40

In this segment, the host discusses OpenAI's recent unveiling of a new flagship chatbot model named Chat GP40. The model is highlighted for its ability to solve linear equations and its potential to revolutionize the tech landscape. The conversation also touches on the timing of the announcement, which coincides with Google's IO conference and Apple's WWDC, suggesting a strategic move to compete with these tech giants. Patrick Morehead, CEO of More Insights and Strategy, joins the discussion to share his insights on the potential impact of Chat GP40 on the competitive environment and the broader implications for tech investors. Morehead expresses skepticism about the immediate transformative impact of the model on everyday life but acknowledges the risk it poses to established tech companies if they do not adapt to the emerging AI landscape.

05:01

🤖 AI and the Future of Tech Giants

The second paragraph delves into the strategic considerations for tech giants like Apple and Google in light of OpenAI's advancements. The discussion explores the possibility of Apple partnering with OpenAI and the potential for a relaunch of Siri incorporating generative AI. Morehead suggests that while Apple excels in on-device AI, it may need to bolster its cloud-based services to stay competitive. He also addresses the potential for OpenAI to monetize its technology through various means, such as service payments or advertising, which could pose a risk to Google and Apple's market dominance. The segment concludes with a brief mention of ARM's potential development of AI chips, with Morehead expressing skepticism about ARM creating physical products but openness to the idea of ARM licensing its intellectual property for AI accelerators.

Mindmap

Keywords

💡Chat GPT-40

Chat GPT-40 is a flagship chatbot model unveiled by OpenAI during a live stream conference. It represents a significant advancement in AI technology, combining voice, images, videos, and text in a humanlike interaction mode. The model is designed to be smarter and faster, capable of solving complex problems such as linear equations, which is showcased in the script. It is positioned as a potential game-changer in the tech industry, particularly concerning its impact on major players like Apple and Google.

💡Patrick Morehead

Patrick Morehead is the founder, CEO, and chief analyst at More Insights and Strategy. In the transcript, he is a guest speaker who provides expert commentary on the implications of the new Chat GPT-40 model. His insights are crucial to understanding the strategic and competitive landscape that tech giants like Apple and Google might be facing with the advent of this new technology.

💡Google IO

Google IO is Google's annual developer conference where the company often announces new products and updates to its existing services. In the context of the script, the timing of OpenAI's announcement is highlighted as strategic, happening just before Google IO, suggesting that it could influence discussions and competition in the tech industry.

💡Apple WWDC

Apple WWDC, or Worldwide Developers Conference, is Apple's annual event where the company introduces new software and technologies. The script suggests that the release of Chat GPT-40 could impact Apple's strategies and presentations at their upcoming WWDC, particularly in defining the best intelligent agent or assistant experiences.

💡Monetization

Monetization refers to the process of generating revenue from a product or service. In the script, Patrick Morehead discusses the potential risks to Google and Apple if OpenAI's Chat GPT-40 becomes widely adopted. He suggests that OpenAI could monetize the technology through service payments, advertising, or by directing users to other profitable services, which could pose a risk to established business models.

💡On-device AI

On-device AI refers to artificial intelligence capabilities that are integrated directly into a device, such as a smartphone or tablet, rather than relying on cloud-based services. The script mentions that Apple needs to improve its on-device AI to stay competitive, as this is a key area where user experience is significantly impacted.

💡Cloud-based Services

Cloud-based services are applications that run on remote servers and are accessed over the internet instead of being installed on the user's device. The discussion in the script suggests that any potential partnership between Apple and OpenAI might involve cloud-based services, which could be a strategic move for both companies.

💡Siri

Siri is Apple's virtual assistant technology that uses voice interactions to perform tasks. The script hints at a possible relaunch of Siri at WWDC, potentially incorporating generative AI from OpenAI, which could significantly enhance its capabilities and user experience.

💡Investment Bubble

An investment bubble refers to a situation in financial markets where the prices of assets rise to levels that are significantly higher than their intrinsic value, often followed by a crash. In the context of the video, Patrick Morehead uses the term to describe the hype around AI technology and the need for companies to manage expectations and the potential for disillusionment.

💡Intellectual Property (IP)

Intellectual property refers to creations of the mind, such as inventions, literary and artistic works, designs, symbols, names, and images used in commerce. In the script, the discussion about ARM potentially licensing its IP for AI accelerators indicates a strategy where companies can use ARM's technology to develop their own AI capabilities.

💡AI Chips

AI chips are specialized hardware designed to efficiently perform the complex mathematical operations required for AI and machine learning tasks. The script mentions a report about ARM developing AI chips, which would be a significant development in the hardware space, enabling more advanced AI capabilities in devices.

Highlights

OpenAI has unveiled a new flagship chatbot model called GPT-4o during a live stream conference.

GPT-4o is described as smarter and faster, potentially impacting the competitive landscape for tech giants like Google and Apple.

The timing of the announcement coincides with Google IO and Apple WWDC events, suggesting a strategic move.

GPT-4o integrates voice, images, videos, and text in a human-like interaction mode.

Despite the hype, the real-world impact of GPT models on everyday life has been limited so far.

Technology adoption is often slower than initially anticipated, with a period of disillusionment expected.

Software and services like GPT-4o can be rapidly developed and deployed compared to physical products.

The risk for big tech companies is users increasingly using OpenAI's chatbot and relying less on their own voice assistants.

OpenAI could monetize its technology through service payments, advertising, or directing users to other profitable chatbots.

There's a possibility of Apple partnering with OpenAI, which could have significant implications for both Apple and Google.

The potential partnership could involve cloud-based services and may require substantial financial agreements.

Apple needs to improve its on-device AI to stay competitive, as its cloud capabilities are not as advanced.

A relaunch of Siri incorporating generative AI is expected at WWDC, possibly with OpenAI's assistance.

The integration of multiple AI models is necessary to address different functionalities both on-device and in the cloud.

OpenAI's potential long-term strategy could involve getting its technology in front of billions of iPhone users.

ARM is reported to be developing AI chips, but the credibility of this report is considered low for actual product creation.

ARM is more likely to license its intellectual property for AI accelerators in various devices and data centers.

Investors are looking for tangible AI advancements, even if it's the processor behind the AI capabilities.

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