Apple's week May 22: OpenBS

OpenAI is a financial disaster, Google is putting the final nail in the search coffin, and Epic Games has no ideas how lawsuits work on this week's newsletter.

Apple and ChatGPT are in the same AI race, but in completely different positions

I spent the week working day shift, so I've been extra keyed into everything going on. The lead-up to WWDC is getting more frantic as Apple's competitors make their plays, for better or worse.

Here are some stories I'd like to share this week:

OpenAI needs your data and your money

One of the worst-kept secrets of the current AI-focused era we're in is that all of this is incredibly expensive. Every time you ask your chatbot to praise your latest terrible idea, you're using up precious energy and polluting some town in middle America.

Data centers are being built all over the country and are technologically outdated by the time they're online. Local governments that approve the projects are excited by the influx of jobs, but are dismayed when the completed projects are manned by minimal staff.

Everyone paying attention knows these things. Generative and cloud-based AI comes at incredible costs. And currently, the companies are attempting to subsidize these costs through incredible subscription pricing and investor capital.

However, it's not working that well because these companies are in a race to outperform each other and reach "Artificial General Intelligence" first. This artificial goalpost is basically science fiction at this point, so there's no telling who will attempt to declare reaching it first.

One thing is clear though, these companies are burning through cash and resources – all except for Apple.

Apple Intelligence may not be able to generate fake music, videos, or quality images, but it also isn't draining Apple's coffers. It'll get a big upgrade this fall with improved Apple Foundation Models, but that's thanks to a deal with Google.

I'm not sure what the win/lose metrics are for the AI race, but everyone seems to believe Apple is losing. From my perspective, Apple remained profitable, popular, and devoid of slop while the rest of the industry perfected a business model that will run on Apple's platforms.

Anything is better than Google

Enough has been said about Google I/O this week, so I'll just say this. If Google injecting AI into your results, obfuscating blue links, and harvesting your data to power its tools hasn't been enough to get you off of the platform, the latest announcements should.

Google says it is going all-in on AI-search, which means it will further de-emphasize the websites that helped make Google's AI tools possible. What's worse is the search and AI that replace what used to be keyword-based results can hallucinate key details up to 30% of the time.

There are options. Whether it's DuckDuckGo, which is basically a more private Bing plus some stuff, or Kagi, a paid ad-free alternative, you can easily get away from Google.

In fact, any keyword-based tool will provide better results because instead of relying on AI summaries and chatbots, they still rely on the people that make search possible in the first place.

Epic failure

I don't want to talk about legal proceedings. I didn't get into this business to discuss who is suing who. But, sadly, it's a part of the job.

I've spent the better part of the past few months covering the ins and outs of Apple taking its case with Epic to the Supreme Court. Needless to say, the whole situation is stupid.

Apple actually has a very strong case, especially because of CASA, but I'm not here to talk about that.

Epic actually took to the internet this week to declare victory even though it hadn't accomplished anything. The case is ongoing, Apple's commission rates haven't been determined, and the Supreme Court hasn't weighed in. Yet, they ran a new in-game event and ad to mock Apple while launching Fortnite globally, again.

Someone should really explain how court cases work to Tim Sweeney.

Minecraft with friends

I'm going to end on a simple note that playing video games with your friends is one of the most fun things you can do, even when you're not in the same room.

I'm a big fan of couch co-op and multiplayer, so 007 on the N64 or Super Smash Bros. are still excellent ways to pass time with close friends at home. Heck, even the new Lego Batman has a perfect couch co-op experience.

But don't forget that online games are also an amazing thing to jump into from time to time. Seriously. Schedule specific time to spend on a game you can play as a group.

For me, that's Minecraft. The latest realm I've joined with friends is a reminder that it's just a great time to do something with others in this way, whether you're good at survival mode or not.

I'm also thinking of this as Destiny 2 is getting its last live service update. There's also no sign that there will be a Destiny 3, and the studio is facing layoffs.

It's a crummy world out there, so spend some time with the people you love in a place where the only thing you have to worry about is a Creeper blowing up your spot. Literally.

A black, orange, and white cat looks with a slight glare at the camera — Harvie has zero opinion on Minecraft