Apple’s Shift from Cars to AI Raises Concerns Amongst Billionaire Investor

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Chengdu China Mar 10 2020 Apple Stor 4

Apple Inc. AAPL is reportedly in talks with Alphabet Inc.โ€™s GOOG GOOGL and ChatGPT-parent OpenAI to license their generative AI models โ€” with billionaire investor Chamath Palihapitiya expressing concerns about Cupertinoโ€™s shift from electric cars to AI.

The Shift: On Monday, Canadian-American venture capitalist Palihapitiya shared his thoughts on X (formerly Twitter

He highlighted that voice and text will play a crucial role in shaping internet functionalities โ€” even more so than images.

Palihapitiya remarked, โ€œIf Apple with all their resources has to turn to a third party for AI interface (as reported), it poses significant implications.โ€

Drawing parallels with Appleโ€™s exit from the automotive sector, he suggested that this move signifies a potential abandonment of AI development, equating it to surrendering altogether.

He warned of the impact on Appleโ€™s talent pool, product quality, revenue, and profit, emphasizing the risks associated with this decision.

In conclusion, Palihapitiya labeled Appleโ€™s actions as an โ€œunsound business decision.โ€

Significance: Earlier reports indicated Appleโ€™s discussions with Google to use Gemini for new iPhone functionalities. A similar negotiation with OpenAI is reportedly underway.

Moreover, recent news revealed Appleโ€™s strategic reassignment of nearly 2,000 employees from its EV project, Titan, to the generative AI divisionโ€”a move expected to lead to layoffs.

Explore more of Benzingaโ€™s Consumer Tech coverage by following this link.

Read Next: Apple Fails To Dismiss Lawsuit Claiming AirTags Are Weapon Of Stalkers: โ€˜Determination Cannot Be Made At This Early Stageโ€™

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