OpenAI's AI Device Race: Impact on Apple & Google

OpenAI, Jony Ive, and the AI Device Race

OpenAI's move to bring Jony Ive into the company could change the AI device competition and put pressure on Apple. Hope King, from Macro Talk News and Yahoo Finance, spoke on Catalysts about how this partnership might affect big tech's hold on consumer AI.

Johnny Ive, who helped create the iPhone, is teaming up with Sam Altman from OpenAI, which could threaten big tech companies seeking AI dominance, including Apple, Microsoft, Google, and Amazon.

The Altman-Ive Partnership

Hope King shared her thoughts on the video about Sam Altman and Johnny Ive's relationship and its possible impact on OpenAI and other tech companies. She noted that OpenAI has made similar moves before, such as releasing a product before Google I/O last year. This year, they announced an acquisition on the second day of Google I/O. The acquired company is called IO, and some have noticed that searching for "IO" on X now brings up this acquisition instead of Google I/O.

King believes OpenAI is entering a space where they could disrupt big tech by owning the device that serves as the entry point to AI systems. This could reduce the need to use Gemini or Siri on other devices. Bringing Johnny Ive on board is a significant move. King thinks Sam Altman wants to disrupt in a way that Google, due to its size, cannot.

Apple's Position

The discussion shifted to Apple and the risk it faces with its phone dominance, especially with its stock under pressure. Apple has been struggling with its AI development. If phone prices increase and manufacturing is disrupted, while Apple falls behind on AI software, it could face significant challenges. Having Johnny Ive on their side could help OpenAI gain ground if Apple's iPhones fail to deliver on their AI promises.

Concerns are growing about Apple's software strategy in the future. Additionally, there is discussion about whether Sam Altman has chosen the right person, given that Johnny Ive has had AI gadget failures. However, it was noted that having someone as well-known as Johnny Ive can bring attention to OpenAI, especially since they currently lack a hardware product.

This partnership is expected to create curiosity and anticipation for the product announcement, casting a shadow over tech companies for the foreseeable future. Apple is also working on new glasses as part of its hardware strategy. While the Vision Pro is not widely used, Apple is trying to make smaller versions, similar to Google, Ray-Ban, and Meta. If Apple can succeed with these glasses, they might regain some of the attention they've lost and gain a first-mover advantage in new hardware.