Apple Scared of OpenAI's Puck-Sized Game-Changer

Apple's pipeline of new hardware has been relatively quiet lately, but Bloomberg's Mark Gurman believes this is because Apple is scared of what OpenAI is building.

Gurman said on The Verge's Decoder podcast that OpenAI's screenless AI device, which resembles a hockey puck, is a game-changer. He claims that Siri AI has been the gate to new product categories for Apple, and without a strong AI model of its own, the company's growth beyond the iPhone will be limited.

Gurman notes that Apple has spent over $40 billion on R&D in the last 12 months but still relies on partners like Google for key technology. He argues that Apple's lack of a frontier AI model caps its growth, and while the company can still ship products, it won't control the most important part of them.

Gurman believes Apple has the ability to fast follow OpenAI's innovations but notes that a partner supplying the brain has leverage. He speculates that Google or Anthropic may want a meaningful cut of any breakout device they help build, similar to how Apple was dependent on Intel in the past.