Guys, I don’t think Tim Cook knows how to monetize AI

Guys, I don’t think Tim Cook knows how to monetize AI

Apple exceeded expectations when it reported its quarterly earnings on Thursday, revealing that it made $143.8 billion in income for a 16% year-over-year improve. As analysts peppered CEO Tim Cook with softball questions during Apple’s earnings name, one analyst dared to ask the query that seemingly nobody in Silicon Valley is prepared to ask.

“When I think about your AI initiatives, you know, it’s clear there are added costs associated with that… Many of your competitors have already integrated AI into their devices, and it’s just not clear yet what incremental monetization they’re seeing because of AI…,” began Morgan Stanley’s Erik Woodring.

Could there be a tinge of nervousness beneath this Finance Man’s probably-very-financey facade? In what I can only think about must have been a Herculean show of braveness, Woodring requested the query that lurks only in the darkest, dampest recesses of buyers’ minds.

“So, how do you monetize AI?” he requested.

You’d think this would come up more. You can be fallacious. Instead, Big Tech has taken a largely vibes-driven method to AI development. Take OpenAI, as an illustration, which can seem to be it’s on top of the world, given how ChatGPT has embedded itself into the cultural consciousness. But the company isn’t planning to make any cash until 2030. Analysts from HBSC are even uncertain about that timeline, particularly since it is going to want another $207 billion in funding, estimates say. Ask anybody in tech how OpenAI is planning to break even, and also you’ll be met with the verbal equal of the ¯_(ツ)_/¯ emoticon.

But good ol’ Tim “$143.8 billion in revenue” Cook was having a superb afternoon, so possibly he’d lastly spill the beans about how any of these corporations are planning to recoup their investments.

His reply was disappointing.

“Well, let me just say that we’re bringing intelligence to more of what people love, and we’re integrating it across the operating system in a personal and private way, and I think that by doing so, it creates great value, and that opens up a range of opportunities across our products and services,” Cook said.

So, there you’ve it, of us. Apple will monetize AI by creating “great value.” And, crucially, that will “open up a range of opportunities.” Which we are going to experience in “products and services.” Cool!

Well, shout-out to that Morgan Stanley man for attempting.

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