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Oh my god, the Apple/OpenAI deal is so weak. Apple paid them nothing, and as @markgurman.bsky.social reports, it could end up costing OpenAI a ton of money if people actually use it at scale. Apple even takes a cut if people subscribe to ChatGPT Plus. Where's the profit, Sam? t.co/MGTdWeJsyG
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Apple hitting OpenAI with the "paid in exposure," except this is like being a freelancer who has to do the work for free on the off chance one of the people decides to pay them in the future for something that they can get for free anyway
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these ai guys being true believers in the tech always being 𝘫𝘶𝘴𝘵 𝘢𝘣𝘰𝘶𝘵 to change the world utterly wrecks any long-term planning ability they may've previously had
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It does feel like they took the business strategy of “make great product -> release it for free -> figure out money later” to its absurd extreme
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is it ... is it possible they asked ChatGPT what to do next and it said 'put me on apple devices' I mean ...
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“Loss leader” or something….
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Might as well poke more holes in the sinking ship so it goes down faster!!!
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Efficiency is king!
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How is this any different to an air drop?
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I mean it's a totally different feature
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OpenAI are just waiting for the subs to start rolling in
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You mean like...a crypto air drop??
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Yes. Given any cost of delivery, 'get paid in exposure' deals make more sense if the product sucks. Maybe Sam Altman knows that AI sucks. Does Apple know?
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Apple screwing them over and crashing them might be the best case scenario
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this reads like "we're gonna bend over backwards so you don't go with Gemini" to me
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On the one hand, Sam Altman, on the other, the absolute maniac alligator shark wolves Apple uses to do these kinds of deals. I'm surprised that Altman got out of the room with as favourable a deal as he did.
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unfortunately it's a "if either survives, we lose" situation
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This is what you get when you ask your AI to come up with your business plan. I guess they figured that taking a loss is OK if they can make it up in volume.
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that's another great part, there is no exclusivity deal. Apple could just as easily *also* go with Gemini.
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They're already saying they'll support other models in the future
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This reads to me like OpenAI was worried about what would happen if Apple did NOT implement AI
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specifically, if Apple did not partner with OpenAI in a very public way, regardless of if that's actually a good deal for OpenAI, which this is not every time you use OpenAI on an Apple product there's gonna be a little "lol r u sure?" that pops up and if they think that's GOOD PR...
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Yeah it's Apple directly saying they don't trust it
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Wow so this is Apple’s 4D Chess to simultaneously check the “AI” checkbox for investors, while also treating the scam-de-jour for what it is.
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They're doing a bunch of their own AI shit too for when it falls apart lol
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oh man, I didn't even really think about that part! Sam's cooked, he's just resting on the counter now.
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I also don't know if there's a clear first-to-market benefit here, either. Inertia, maybe, but if apple later switches to Gemini or Claude or whatever, it'll be basically the same on the user end.
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There seems to have been a lot of worry about users locking themselves into a certain AI ecosystem, but I don't really see how it works like that.
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skfhdklgjk stealing this line immediately
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bsky.app/profile/elec...
Altman had to personally plead with Cook to do him a favor on this, didn't he
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Also, I don't think their reasoning need be any more complex, methodical, or long game than this bsky.app/profile/elec...
I think the primary motivation is pure, unadulterated desperation - they needed to be seen making Big Deals to justify their world shaking valuation, and since I really really bet they thought the financial details would stay confidential, they thought this looked good enough
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Certainly worried about being an option with Apple, as Apple said they'll open it up to other bots in time. Even then, Apple can, at any moment, put OpenAI under the gun again with "we're ready to hand off to any chat bot users choose." One way or the other, Apple will make it make them money first.
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😹 it is kind of amazing tbh ed
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I love it so much honestly.
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Glad there's something to be enjoyed for you in all this
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I was meant to take a week off the newsletter and I may still do so but also, maybe not?
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Sometimes you have to let the light shine down 🙏
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They’ll make it up on volume!
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Step 1, Build a resource devouring flaming turd no really wants. Step 2, Use helicopters of money to pay gigantic companies to host and half ass promote your flaming turd lite. Step 3, Profit!
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If they score zero subscriptions, true. That would be even funnier.😹
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so... openAI is basically getting paid in exposure here?
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lolol love that for them