WEBVTT 1 00:00:00.060 --> 00:00:02.070 - Apple's AI strategy will open doors 2 00:00:02.070 --> 00:00:04.260 for rivals rather than close them. 3 00:00:04.260 --> 00:00:07.020 Apple on Monday at its Worldwide Developers Conference 4 00:00:07.020 --> 00:00:11.070 confirmed its widely anticipated partnership with Open AI 5 00:00:11.070 --> 00:00:13.980 to bring chat GBT to its next generation of devices. 6 00:00:13.980 --> 00:00:16.745 Later this year, the AI chat bot will be available 7 00:00:16.745 --> 00:00:19.770 for free on the latest iPhone operating system, 8 00:00:19.770 --> 00:00:23.400 iOS 18 iPad OS 18, and Mac Os. 9 00:00:23.400 --> 00:00:25.770 Sequoia analysts speculated 10 00:00:25.770 --> 00:00:28.080 that such a deal would spell trouble for Google, 11 00:00:28.080 --> 00:00:29.400 especially since it's competing 12 00:00:29.400 --> 00:00:31.380 with both companies on two fronts, 13 00:00:31.380 --> 00:00:33.960 its Android devices compete with the iPhone 14 00:00:33.960 --> 00:00:37.710 and its chatbot Gemini rivals Chat, GBT on Tuesday. 15 00:00:37.710 --> 00:00:40.740 Bank of America analysts wrote in a research note from an 16 00:00:40.740 --> 00:00:43.470 alphabet investor perspective, there have been concerns, 17 00:00:43.470 --> 00:00:46.020 which we have shared, that any deal between Apple 18 00:00:46.020 --> 00:00:48.780 and OpenAI could be negative for Apple stock, 19 00:00:48.780 --> 00:00:51.180 opening the door for increasing AI usage 20 00:00:51.180 --> 00:00:52.770 as an alternative to search. 21 00:00:52.770 --> 00:00:55.530 But Apple's software engineering Chief Craig Federighi 22 00:00:55.530 --> 00:00:57.690 through other companies of bone in his unveiling 23 00:00:57.690 --> 00:00:59.490 of the Apple Open AI deal. 24 00:00:59.490 --> 00:01:03.300 After laying out chat GBTs uses on iOS 18, he quickly noted 25 00:01:03.300 --> 00:01:05.730 that Apple also intends to add support 26 00:01:05.730 --> 00:01:08.490 for other AI models in the future that paves the way 27 00:01:08.490 --> 00:01:10.770 for future deals with other chatbot providers such 28 00:01:10.770 --> 00:01:13.260 as Google, Andro and Microsoft Bank 29 00:01:13.260 --> 00:01:16.260 of America analysts said indeed, a door seems open 30 00:01:16.260 --> 00:01:18.300 for Gemini and noted that the impact 31 00:01:18.300 --> 00:01:20.640 of open AI's Apple deal will likely be 32 00:01:20.640 --> 00:01:21.930 smaller than expected. 33 00:01:21.930 --> 00:01:24.450 Morgan Stanley analysts said they continue to believe 34 00:01:24.450 --> 00:01:27.360 that Apple is more likely than not going 35 00:01:27.360 --> 00:01:29.130 to leverage Google and Gemini. 36 00:01:29.130 --> 00:01:30.540 Apple's announcements were good 37 00:01:30.540 --> 00:01:32.460 for Google in an indirect way too. 38 00:01:32.460 --> 00:01:35.280 They said that's because Morgan Stanley analysts think 39 00:01:35.280 --> 00:01:37.110 Google's generative AI offerings 40 00:01:37.110 --> 00:01:39.750 for Android make it a stronger product than Apple's 41 00:01:39.750 --> 00:01:41.250 iOS 18 update. 42 00:01:41.250 --> 00:01:44.640 Apple's AI strategy is distinct from its direct competitors. 43 00:01:44.640 --> 00:01:48.270 Rather than creating a singular closed loop AI tool like 44 00:01:48.270 --> 00:01:50.460 Microsoft, Google, and Open AI 45 00:01:50.460 --> 00:01:51.510 and others, Apple's, 46 00:01:51.510 --> 00:01:54.660 AI paves the way from multiple technology partners similar 47 00:01:54.660 --> 00:01:56.640 to Salesforce's Einstein co-pilot. 48 00:01:56.640 --> 00:01:59.225 But just as that pathway leaves the door open 49 00:01:59.225 --> 00:02:02.040 for Google's Gemini, Apple's multitude of possibilities 50 00:02:02.040 --> 00:02:05.975 for new technology partners for iOS 18 is according to Bank 51 00:02:05.975 --> 00:02:08.250 of America analysts an ongoing concern 52 00:02:08.250 --> 00:02:10.500 for Google's long-term competitive mode. 53 00:02:10.500 --> 00:02:13.050 Thanks for watching and stick with qz.com.