HORACE DEDIU ON APPLE SITTING OUT THE AI SPENDING RACE
If they can make Apple Intelligence a first-class agentic AI by relying on Gemini, paying only $1 billion per year, it sure looks like genius. But given their track record with Apple Intelligence to date, that is an enormous “if”.
Only time will tell if this is really genius strategy, a happy accident, or a big miss. Or maybe a happy accident will be indistinguishable from genius strategy and we'll never know.
What I do know is that if we can get intelligent Siri, with all the intelligence of Gemini, but with the privacy of Apple's cloud and on-device models, that'll be a big win for customers and I'm excited about that.