In most cases people and businesses would rather own their hardware rather than be at the mercy of giant corporations who are currently subsidizing the market with $Trillions of capital from investors and government agencies. These companies can change their policies and prices with a moment's notice. Currently the prices for computer hardware has been doubled and tripled because of all the demand created by herd mentality investment in huge data centers. But the writing is on the wall and Apple was the one massive multi-national company which did not go down the same path. They instead chose a more common-sense path with an actual thought out business plan.
This is going to get very ugly for their competitors who never had a coherent business model for the huge amount of money being spent on AI projects. Microsoft has already lost or written off $Billions and as the trajectory continues this might be the beginning of the end for them.
They initially partnered with Open AI the creator of ChatGPT, but have also committed huge sums to Anthropic. They have been all over the map and their Co-Pilot program has been a flat-out failure which makes their "Clippy" assistant from Office 97 look like brilliant by comparison.
Apple partnered with Google to use Google's Gemini models and cloud technology to power Apple Intelligence and an upgraded Siri. But whether consumers realize it or not, Apple's bet is on local AI and against the huge data center build-out. This is almost a sure bet for many structural reasons and demonstrates more than any other sign that Microsoft and Company have their butts hanging out in the wind when the real bills start coming due.
Apple has shown once again that their leadership regardless of how one feels about the individuals involved, has the ability to make good decisions even during a stampede toward oblivion. They will once again be the largest company in the world, while Nvidia's fortunes likely will take a tumble as the AI bubble collapses.
let’s see the guardrails. Local AI doesn’t mean anything in terms of security if it is sharing localized AI information to generative AI cloud services. In fact, I posit that it is more dangerous as people will get a sense of complacency and allow local AI to have access to all of their private data, and then be shellshocked when their private data is in a public cloud, being used to train future AI models and give unfettered access to the populaces information.
And not just for the local AI feature.
YouTube music aficionado Rick Beato noted a few months ago that expensive music studios used to be a big part of the music industry at specific locations. Then the technology improved and then the capability got decentralized to the point where just about anyone can mix music at a high level in their own basement.
Beato theorized that the high energy, water hogging Data Centers were a blind alley and would not remain as the main way to develop AI. Rick thought that decentralized local systems would do for AI what mix technology had done for music studios.
I think it makes sense, and it’s basically in line with the core concept of the Internet from the very beginning — decentralize the global network for redundancy and efficiency. I don’t really understand why enormous Data Centers are where the Big Boys want to spend their money.
You mean SI.