"Apple doesn't have their own LLM. They can't innovate."

They also don't have their own search engine yet they make $20B+ a year from search.

Lesson in there.

when you are that size you make money off of anything. but are you maxing?

the argument is more of a 'could they have made more if they had their own search/ad'
-- google makes more than 20b off of their traffic otherwise they wouldn't pay 20b for it

Apple is a hardware company that's good enough in software. Always has been.

They win when it's about hardware differentiation + vertical integration.

Frontier LLM doesn't matter if there are 3 other ones and every one of them is available as an app.

OS level integration of LLMs is akin to the hardware differentiation you mention
-- plenty of earbuds on the market (LLMs as apps) but airpods slap (OS level LLM integration could too)
-- not to mention running models locally which is literally hardware differentiation

agree that 'don't have a model, can't innovate' is wrong 
but because it's actually reverse 
if they were innovating they would've done better already

Apple‘s partnership within Anthropic points to local models. Probably running in earbuds.