When Ignoring AI Actually Works...
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For years, Apple was mocked for falling behind in AI. Siri was delayed, Apple Intelligence struggled to live up to the hype, competitors were spending hundreds of billions on data centers and GPUs, and some people were even questioning whether Apple still belonged in the Magnificent 7. Then something strange happened. Apple surged back toward the top of the market while spending a fraction of what companies like Amazon, Microsoft, Meta, and Google are pouring into AI. Instead of building massive AI infrastructure itself, Apple has taken a completely different approach: run as much AI as possible directly on its devices, use existing infrastructure for heavier workloads, and rent outside compute when necessary. That strategy looks even more powerful when you consider Apple already controls more than 2.5 billion active devices. While everyone else is fighting to build the best model and the biggest data centers, Apple may have realized that the most valuable part of AI is not the model at all. It is owning the customers, the hardware, and the ecosystem where AI actually gets used.
LinkedIn: https://www.linkedin.com/in/hariharan-jayakumar-silo
Instagram: https://www.instagram.com/hariharan.jayakumar/
TimeStamps:
0:00 - Apple AI
0:31 - The Mag 6 Part
6:13 - Capex
11:24 - The Moat
Sources: https://pastebin.com/j3nKSTZt
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