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

OpenAI has recently unveiled a new chatbot model, GPT-40, during a live stream conference with CTO Mira Moradi. This development could pose a significant challenge to tech giants like Apple and Google, as it integrates voice, images, videos, and text in a humanlike interaction mode. Patrick Morehead, CEO of More Insights and Strategy, discusses the potential impact on the competitive landscape. He suggests that while the technology may not have immediately transformed everyday life, it could eventually disrupt the market if Apple and Google do not adapt. Morehead also speculates on the possibility of Apple partnering with OpenAI, which could lead to a relaunch of Siri incorporating generative AI. Additionally, he addresses the potential of ARM developing AI chips, suggesting that while creating actual products is unlikely, licensing intellectual property for AI accelerators is a probable move.

Takeaways

• 🚀 OpenAI has released a new flagship chatbot model called GPT-40, which is claimed to be smarter and faster.
• 📅 The timing of the release coincides with Google IO and Apple WWDC, suggesting a strategic move to impact the competitive landscape.
• 🤔 Despite the hype, the impact on everyday life and corporate America has been limited, with unclear long-term benefits.
• 🌐 The new model integrates voice, images, videos, and text in a more humanlike interaction, which could be a game-changer.
• 💡 Technology adoption often takes longer than anticipated, and the true impact on consumers and businesses may be years away.
• 📱 The new model is faster to use in software and services on smartphones, which could challenge existing tech giants.
• 💰 There is a risk for big tech companies if users start relying more on OpenAI's chatbot and less on their voice assistants.
• 🔍 Apple might be partnering with OpenAI, which could lead to a relaunch of Siri incorporating generative AI at WWDC.
• 🤝 A potential deal between Apple and OpenAI could involve cloud-based services and could be mutually beneficial.
• 💼 OpenAI is reportedly losing a lot of money, and strategic partnerships or investments could help in the long run.
• 💡 ARM is likely to license intellectual property for AI accelerators rather than selling AI chips directly.

Q & A

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

The release of GPT-4o could pose a challenge to Google and Apple as it represents a significant advancement in AI technology, potentially disrupting their dominance in the search and intelligent assistant markets.

Why is the timing of GPT-4o's release considered important?

The timing is significant because it coincides with Google's IO conference and Apple's WWDC, which are key events where these tech giants showcase their latest innovations. The GPT-4o release is likely to draw attention and potentially influence the competitive landscape.

How does the GPT-4o model differ from previous models in terms of capabilities?

GPT-4o is described as smarter and faster than its predecessors, integrating voice, images, videos, and text in a more humanlike interaction mode, which suggests an enhanced ability to understand and respond to user inputs.

What is the current adoption rate of AI like GPT-4o in the corporate world?

While there has been significant interest and some integration into corporate America, the widespread adoption and transformational impact of AI models like GPT-4o are still unfolding, and the full extent of their influence on daily life and business operations is yet to be realized.

What are the potential risks for Google and Apple if they do not adapt to the advancements in AI represented by GPT-4o?

If these companies do not innovate and integrate similar AI capabilities, they risk losing users to more advanced AI services like GPT-4o, which could lead to a decrease in their market share and influence.

How might OpenAI's GPT-4o model be monetized in the future?

GPT-4o could be monetized through various methods, including service payments, advertising, and potentially directing users to other chatbots or services that generate revenue for OpenAI.

What are the implications of a potential partnership between Apple and OpenAI?

A partnership could lead to the integration of advanced AI capabilities into Apple's products, enhancing the user experience and potentially giving Apple a competitive edge. It could also involve financial arrangements or technology exchanges that benefit both parties.

What are the odds of Apple and OpenAI coming together according to Patrick Morehead?

Patrick Morehead puts the odds at about 50-50 that Apple and OpenAI will form a partnership, suggesting that while there are possibilities, it is not a certainty.

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

Morehead assigns a very low probability to ARM creating actual products for purchase but a high probability to ARM licensing its intellectual property for AI accelerators in various devices.

What does Patrick Morehead predict regarding Siri's future at Apple's WWDC?

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

What are the two types of AI that Patrick Morehead mentions in the context of Apple's needs?

Morehead refers to on-device AI, which would be integrated into iPhones, iPads, and Macs, and cloud-based services, which are more relevant for backups and streaming media.

What is the potential long-term play for OpenAI if they partner with Apple?

The long-term play could involve getting users hooked on OpenAI's AI services like chat GPT, which could lead to sustained use and monetization opportunities, similar to how free services like Google Search and Facebook gained traction.

Outlines

00:00

🚀 OpenAI's New Flagship Chatbot: Chat GP40

The first paragraph discusses OpenAI's recent live stream, where they introduced a new flagship chatbot model named Chat GP40. The chatbot is praised for its ability to solve linear equations and its potential to revolutionize the way we interact with technology. Patrick Morehead, CEO of More Insights and Strategy, joins the discussion to provide his insights on the announcement. He highlights the strategic timing of the release, just before Google's IO conference and shortly before Apple's WWDC. Morehead suggests that while the technology is promising, its widespread adoption and integration into daily life have been slower than expected. He also discusses the competitive landscape, noting that OpenAI's move could influence Google and Apple's strategies in the AI space.

05:01

🤖 AI Adoption and the Future of Tech Giants

The second paragraph delves into the potential impact of AI on tech giants like Apple and Google. Morehead expresses skepticism about the immediate transformative power of AI, noting that while there's excitement around the technology, its integration into consumer and business products takes time. He discusses the risks for big tech companies if users increasingly rely on OpenAI's chatbot over their own voice assistants. Morehead also speculates on possible partnerships between Apple and OpenAI, suggesting that Apple may need to enhance its on-device AI capabilities to stay competitive. He touches on the possibility of a relaunch of Siri with generative AI at Apple's WWDC, which could involve collaboration with OpenAI. The conversation concludes with a discussion on ARM's potential role in developing AI chips, with Morehead suggesting that while ARM may not produce physical chips, they could license their IP for AI accelerators across various devices.

Keywords

OpenAI

OpenAI is a research and deployment company that develops artificial general intelligence (AGI) and develops various AI technologies. In the context of the video, OpenAI is unveiling a new flagship model called GPT-4o, which is a chatbot model. It is significant because it represents the latest advancements in AI technology and could potentially disrupt the tech industry.

GPT-4o

GPT-4o is a chatbot model developed by OpenAI. It is described as being 'smarter' and 'faster' than previous models. The model is capable of solving linear equations and is expected to bring together voice, images, videos, and text in a humanlike interaction mode. It is a key focus of the video as it could pose a challenge to established tech giants like Apple and Google.

Patrick Morehead

Patrick Morehead is the founder, CEO, and chief analyst at More Insights and Strategy. He is a guest in the video, providing his insights and analysis on the implications of OpenAI's GPT-4o release. His perspective is valuable as he discusses the potential impact on the competitive landscape and the strategic moves that companies like Apple and Google might need to consider.

Google IO

Google IO is Google's annual developer conference where the company often announces new products and updates. In the script, it is mentioned that OpenAI's announcement of GPT-4o comes just before Google IO, suggesting a strategic timing to challenge Google's dominance in the search and advertising space.

Apple WWDC

Apple WWDC (Worldwide Developers Conference) is an annual event where Apple showcases its new software and technologies. The script suggests that the release of GPT-4o could impact Apple, as it is looking to define the best intelligent agent or assistant experience, which is a key focus at their conference.

Voice Assistant

A voice assistant is a software agent that uses voice recognition and natural language processing to perform tasks, answer questions, and provide information. In the video, there is a discussion about the potential risk that OpenAI's GPT-4o poses to big tech companies like Apple and Google, which have their own voice assistants, as users might start relying more on GPT-4o.

Monetization

Monetization refers to the process of generating revenue from a product or service. In the context of the video, Patrick Morehead discusses how OpenAI could potentially monetize GPT-4o through service payments, advertising, or by directing users to other chatbots for companies that generate revenue. This could pose a risk to companies like Google and Apple that rely on their own monetization strategies.

On-device AI

On-device AI refers to artificial intelligence capabilities that are integrated into a device, such as a smartphone or tablet, and run locally on the device without relying on cloud computing. The script mentions that Apple needs to improve its on-device AI to stay competitive, as this is a key area where users interact directly with AI capabilities.

Cloud-based Services

Cloud-based services are applications that run on servers and are accessed over the internet instead of being installed on local devices. In the video, there is speculation about a potential deal between Apple and OpenAI for cloud-based services, which could involve Apple using OpenAI's AI technology in its cloud services.

AI Chips

AI chips are specialized hardware designed to efficiently run AI algorithms and machine learning models. The script mentions a report about ARM developing AI chips, which could have significant implications for the tech industry. Patrick Morehead suggests that while creating actual chips is unlikely, licensing intellectual property for AI accelerators is a high probability.

Investment Bubble

An investment bubble occurs when the prices of assets increase to levels that are significantly higher than their intrinsic value, often due to speculation and market enthusiasm. In the video, the discussion about the hype around AI technology and GPT-4o is likened to the beginning of an investment bubble, where there is a rush to show off capabilities and get people excited before potentially hitting a trough of disillusionment.

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 than previous models.

The release of GPT-4o is seen as a strategic move to challenge Google and Apple in the AI space.

The model's capabilities include solving linear equations and handling various media types like voice, images, and text.

Despite the hype, the impact of GPT-4o on everyday life has been limited so far.

The adoption of AI technologies is slower than initially anticipated.

GPT-4o's release is timed to coincide with Google IO and Apple WWDC, suggesting a competitive move.

The potential for monetization of GPT-4o through service payments, advertising, or partnerships is discussed.

There is a risk for Google and Apple if they do not adapt to the changing AI landscape.

A partnership between Apple and OpenAI is speculated, with potential implications for both companies.

The importance of on-device AI for Apple is emphasized, as opposed to cloud-based services.

A potential relaunch of Siri with generative AI capabilities at Apple's WWDC is anticipated.

The discussion suggests that multiple AI models will be necessary for different functionalities on devices and in the cloud.

OpenAI's current financial situation, including significant losses, is mentioned.

The possibility of OpenAI investing in infrastructure, advertising, or product development is explored.

ARM's potential involvement in developing AI chips is discussed, with a focus on licensing intellectual property.

Investors are looking for tangible AI advancements, including specific AI intellectual property.