Apple’s strategy is actually genius if you think about it

I did think about it. Three years ago.

the real bear case for this AI boom isn’t a bubble or a recession.

It’s your iPhone.

Baker says in 3 years, a bulked up iPhone will be able to run a pruned version of a frontier model.

Think future Gemini, Grok, ChatGPT at 30–60 tokens per second, on device, no cloud is needed and it’s free.

That’s exactly Apple’s strategy, don’t win the model war, become the distributor of AI.

Make it private, local and safe.

If that happens, most everyday AI use rewriting, summarizing, basic reasoning never touches a data center.

The AI capex boom gets cut off at the source.

Model builders become interchangeable and apple owns the gateway.

That’s the bear case Gavin is warning about.

The real threat to the AI boom isn’t that the models fail.

It’s that Apple makes them run on your phone and keeps all the power for itself.
The richest company on Earth just watched its rivals light $650 billion on fire.

And did nothing.

This might be the most brilliant move in corporate history.

Source: X (formerly Twitter)

NB: Apologies for linking to X. Edge computing is as old as the hills…

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