The report calls out six companies—all of which Morgan Stanley rates Overweight—as beneficiaries from the “edge AI” trend. The list includes hardware vendors Dell, Apple (AAPL), and Xiaomi (XIACF), along with chip makers Qualcomm, STMicro (STM), and MediaTek (2454.Taiwan).
IT industry moves from terminals (thin clients) to PCs (fat clients) to network computers (thin clients) to edge devices with high computing power (fat clients). Next iteration will be thin
Of these six beneficiaries of the trend, Apple’s positioning is the most complex. The company has been including “neural engine” technology in its homegrown microprocessors since 2017, for tasks like facial and voice recognition, but the company has yet to articulate a clear strategy to leverage AI, which makes it stand out from other tech giants.
You mean talk about how to implement a ChatGPT-like feature?
But Morgan Stanley analyst Erik Woodring, in a separate research note, says Apple will be a key beneficiary of the firm’s AI-at-the-edge thesis. Apple can leverage its installed base of more than 2 billion devices and over 1.2 billion users to “to generate more meaningful data than most platforms we can think of,” he writes.
Correct. Much more than those few millions cars.
“When paired together with Apple’s industry-leading focus on data privacy, and some of the most powerful smartphone and PC hardware/silicon in the market today, vertically integrated across hardware, silicon, software and services, we believe Apple can become a true ‘AI Enabler’ in ways many others can’t,” Woodring writes.
CEO Bethany Bongiorno gives a brief history of the company, beginning with how she met co-founder and president Imran Chaudhri on her first day at Apple. The company’s entire history ties back to their former employer. It was there they poached CTO Patrick Gates, along with a reported 90 or so other former Applers.
Tesla cult and their followers may not understand, the point is not about Humane specifically. I too think their device kinda sucks. The point is that GenAI is fueling a new wave of hardware startups, while Apple is still milking the last smartphone wave that’s way past its prime. That’s why Apple is hyperfocused on how to make $2.99 a month from its existing customer base.
Similar sentiments as (replace Tesla cult and their followers with non-Apple investors who didn’t follow the company closely).
to your statement…
Apple has already started many initiatives that could replace iPhone e.g. Apple Watch and Vision Pro. iPhone has not reached its EOL yet, and new initiatives have not reached their prime yet… one of them is still an infant.
These startups have been conceived before LLM/regenAI… just quoting LLM/regenAI for marketing reason.
Thinking aloud: If All You Have is a Hammer, Everything Looks Like a Nail
Google has turned into a retirement home. People just go there to chill and not ship anything. The ironic thing is that the LLM movement was kicked off by Google’s transformer paper. Looks like Google is the modern day AT&T. Lots of contributions to science but doesn’t benefit from them at all commercially.
Sergei and Larry are PhDs, think PhDs are great and should be well taken care of. Making money from search is too easy. They can afford to spend unchecked until the emergence of ChatGPT.
They don’t understand anything that’s not using personal information to sell ads. I know people who were part of Nest and Motorola acquisitions by Google. What they describe is absolutely crazy. Google hires a LOT of MBA grads. I’m not sure if they don’t listen to them, or they just hire ones that are idiots. They do have good DevOps people that keep all their services running. I work very closely with an ex-Google DevOps exec. He’s super smart and his interview questions are awesome. They understand running services at scale very, very well.
