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This week was Apple's biggest 
conference of the year, WWDC 

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2025. 
And recently Apple's not been in

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the news for many positive 
things. 

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And spoiler alert, it only got 
worse. 

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The conference can only really 
be described as disappointing at

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best. 
And what made it even worse was 

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just before the conference, 
Apple's team launched a research

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paper. 
This research paper basically 

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took a swipe at all the big AI 
labs, saying that large language

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models never reason, they've 
only ever memorized. 

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In today's episode, we're going 
to discuss the conference, the 

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research paper, and the fact 
that Johnny I've, Apple's most 

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historically important designer 
ever, has just joined Open AI 

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and explain why I think this 
spells a lot of trouble for 

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Apple. 
This is in the leap with Jack 

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Horton. 
I hope you enjoy the show. 

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So let's start at this year's 
big keynote at the Apple WWE C 

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conference, where usually they 
would announce the most exciting

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new updates and features and 
strategies of the year. 

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And you're probably expecting 
some from VI News or Siri 

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updates or something really 
interesting. 

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So with that in mind, what do we
think the big headline was? 

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In actual fact, their big 
headline of the year was that 

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they've revolutionized user 
interface with something they're

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calling Liquid Glass. 
Now before you get too excited, 

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let me translate this from 
marketing speak to human speak. 

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It basically took a trend called
Glassmorphism from 2022 and 

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probably arguably 2016 Windows 
and slapped a new brand name on 

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it just like they did with Apple
Intelligence. 

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If you've never heard of 
Glassmorphism, it's a design fod

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where everything looked like 
frosted bathroom windows. 

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Renaming this to Liquid Glass 
just like their Apple 

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Intelligence rebrand. 
It's certainly we should all 

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start to learn from which is 
branding is more important 

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apparently than substance. 
And if we keep going in this 

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direction of liquid glass or 
frosted glass windows and 

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bathrooms that I guess 
eventually user interfaces being

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visible, which to say the least 
is not very accessible for those

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that are hard of sight, good 
luck trying to navigate the 

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Frosted Windows App Store. 
What I find particularly funny 

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is that Windows actually did 
this with Windows Vista about 15

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years ago. 
And anyone that remembers Vista 

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would know how that turned out. 
Which is probably the worst 

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operating system update in 
history. 

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And I found some quite funny 
tweets about this Tom Warren on 

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Twitter or X sorry, said that I 
can't wait to not be able to 

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read anything on the new iPhone.
And I think that's someday all 

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this might make me seem like an 
Apple hater, which is just not 

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the case. 
All I've got an Apple Mac, I've 

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got an iPhone, I've got an iPad.
So I'm actually the opposite. 

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But I'm incredibly disappointed 
in them. 

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And I think to be honest, 
they're in big trouble. 

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And I've come on to exactly the 
reasons I think that is going to

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be true. 
This is why they're in trouble, 

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because they're so far behind on
Siri. 

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And the fact that they can't 
have a unified vision of what 

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Syria is supposed to be is kind 
of crazy to me because open AI 

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are literally telling them what 
they should do, which is a 

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universal assistant on every 
single device. 

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That's what Sam Altman came on a
stage, and that's their vision 

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for what AI is supposed to be. 
And this isn't just a small 

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little problem that Apple are 
facing. 

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This disaster's been brewing for
over a decade. 

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I think it's a master class on 
how to completely fumble one of 

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the biggest tech revolutions 
probably since the smartphone. 

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So if we start with Siri, 
because that's where this whole 

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mess started. 
Siri was launched in 2011, so 14

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years ago, and somehow it's 
gotten arguably worse. 

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And meanwhile, Google have 
launched their Gemini where they

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can actually have real life 
conversations. 

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It understands context of the 
app and the screen. 

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You can have your camera holding
up to things in the real world, 

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and it can tell you what it 
sees. 

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And it integrates in all 
applications. 

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And one of the reasons for this 
complete fumble is that Apple 

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had been at war with itself for 
years until very recently. 

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John G Andrea was head of AI at 
Apple, and Apple poached this 

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person from Google in 2018 to 
run all of Apple's AI efforts. 

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When this happened, the head of 
software at Apple, So Craig 

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Federighi apparently had 0 faith
in this person and what he did 

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is he started a competing AI 
team. 

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So that's right, Apple had two 
separate AI teams in the same 

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company fighting for the same 
resources trying to build 

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competing products. 
The team under Federighi 

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actually nicknamed that other 
team as the Aimless. 

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So you know that company culture
is probably quite problematic 

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when employees are creating 
nicknames that are very toxic 

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and negative about each other. 
And it gets even better. 

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When Chachi BT launched, Gee 
Andrea basically said that LLMS 

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have very limited utility in the
world. 

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This culture sounds very much 
like the early days of Apple, 

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when Steve Jobs was to build 
this rampaging around Apple, 

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doing incredible things but 
being quite divisive. 

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Now this dysfunction got so bad 
this year that Tim and Kirk 

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apparently lost all confidence 
in Gee Andrea and strict control

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of Siri from them. 
And I actually handed it to Mike

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Rockwell, who was the person 
behind the Vision Pro. 

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So the Apple Vision Pro, if you 
remember though, it's the three 

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and a half $1000 headset that 
probably about 1000 people 

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bought. 
And he goes well beyond just the

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culture with their AI efforts, 
because Apple's internal data 

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centres are running on about 
50,000 GPUs, many of them were 

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five years old. 
And the AI teams have been 

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begging the likes of Google and 
Amazon just to get enough 

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computing power to train the 
models. 

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So that's the same Google and 
Amazon they're actually trying 

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to compete with. 
And then if we go back in time 

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when we remember that Apple was 
promising all these amazing AI 

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features that are going to be 
ready for the iPhone 16 launch, 

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well, it turns out only half of 
the promised chip budget got 

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approved because the Apple CFO 
told the AI team just to do more

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with less. 
So when all the other big 

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companies see that AI is 
actually the next big computing 

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platform and is spending really 
Big, Apple cut their AI team's 

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budget in half. 
Now, I'm not saying spending 

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more equals better results, but 
if you're a technology company 

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and you're not spending more 
making big bets and willing to 

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RIP up the entire playbook or 
business model, I think you're 

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in deep trouble. 
The idea of product market fits,

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or when a product aligns with a 
market and a need and a want is 

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something that every company has
lost right now because every 

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single person's needs and wants 
are changing so fast because of 

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this new technology. 
And what frustrates me most 

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about Apple right now is that 
Steve Jobs would have cut 75% of

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the fat when it comes to Apple. 
So he'd have cancelled every 

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product that wasn't going to 
deliver triple digit growth. 

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He would have ruthlessly cut 
teams and made everyone 

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incredibly focused and aligned 
on what was most important. 

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And he'd guarantee he would have
been in the office of the 

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software and the design teams 
every single day making sure 

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this thing happened and this 
sort of energy with a founder or

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a leader or a visionary. 
He was in the office with the 

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team day in, day out driving 
those outcomes. 

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It's something that Steve Jobs 
was famous for and I guarantee 

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something that has been lost 
over the last few years. 

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And this comes to the second 
reason I think they're in 

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trouble, which is their way of 
thinking about the world. 

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And this comes to the point of 
that research paper. 

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So Apple know they're behind and
their answer wasn't to try and 

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make big bets. 
For example, I suggested about, 

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I think about 10 episodes or so 
ago, that if I was Apple, I 

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would spend a huge amount of 
money to buy an AI lab and just 

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leapfrog everybody and own our 
own model. 

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So we own every inch of the 
stock and we can triple down on 

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that user experience across all 
interfaces in every device 

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because Apple can own the stock.
That's always been their 

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strategy. 
And instead they've not done any

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of that. 
They've released a research 

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paper arguing basically that all
these large language models are 

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rubbish and they're not actually
reasoning. 

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Tim Cook must have genuinely 
been furious because this became

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the backdrop of the conference 
right around the time of their 

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annual conference, the WWDC 
2025, when everyone was 

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expecting Apple to have some 
kind of cool breakthrough. 

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And instead they dropped a paper
called The Illusion of Thinking,

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Understanding the strengths and 
limitations of reasoning models.

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Now let me break down what this 
paper actually claimed, because 

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it's important to understand. 
So our researchers tested AI 

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models on a puzzle called the 
Tower of Hanoi, which is 

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basically a game which stacks 
rings and you have to move disks

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from one pole to another without
putting a bigger disk on a small

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one. 
It's a logic puzzle with a known

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algorithmic solution, and the 
big finding was that AI started 

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failing when the puzzle got too 
complex. 

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So Claude could handle about 6 
discs. 

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It struggled with 7 and gave up 
at 8. 

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And the conclusion was the AI 
models therefore don't reason, 

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they just pass a match really, 
really well. 

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Now, of course, this was a great
day for many AI skeptics, namely

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Gary Marcus, who has been quite 
famous in AI Twitter and social 

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media circles for trying to make
a career out of basically being 

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incredibly pessimistic about AI,
and he tried to call it a 

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knockout blow for LMS. 
And obviously lots of people 

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were sharing this online too. 
That being said, my personal 

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opinion plus many researchers 
I'll go into, is they're just 

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all revision. 
It really doesn't matter. 

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For example, many pointed out 
that AI models weren't failing 

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because they couldn't reason, 
they were failing because they 

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were hitting token limits, which
is the equivalent of running out

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of space to write their answers 
on a piece of paper. 

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One researcher called Lisa and 
Avgab actually replicated the 

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exact experiment and found that 
models were literally telling 

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the researchers they couldn't 
complete the tasks due to the 

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output constraints. 
So instead of just giving up, 

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the models would explain the 
algorithm for solving the puzzle

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and create the code to implement
it. 

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In other words, the AI was smart
enough to recognize its 

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limitations and provide 
alternative solutions. 

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But Apple's researchers said 
they interpreted this as proof 

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that AI doesn't actually reason.
And what was also reported is 

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that upper researchers actually 
prevented the AI models from 

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writing code to solve the 
problems. 

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And they acted surprise when the
models can solve coding problems

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without being allowed to code. 
And one of the researchers let 

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the AI models use their full set
of capabilities. 

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So reasoning, researching, 
writing, coding, they solved the

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puzzle really easily even with 
hundreds of disks. 

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So my take here is that Apple is
really in trouble if it doesn't 

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start to change its thinking 
fast again. 

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This Twitter post sums it up 
perfectly. 

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Be Apple, richest company in the
world, every advantage 

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imaginable. 
Go all in on AI, make countless 

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promises, get immediately lapped
by everyone. 

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Then two years into the race 
with nothing to show for it, 

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you'd give it write a paper up 
how how it's all fake anyway and

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it really doesn't matter. 
Now I don't think it even 

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matters if models reason or not 
because most of us care whether 

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this model does a thing better 
than the last model and faster. 

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Not the academic definition of 
reasoning. 

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Now that's not to say these 
debates shouldn't happen, they 

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really should. 
But Apple making this their 

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issue to focus on is just 
madness. 

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They're a consumer company. 
They care about what everyday 

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people and customers want to do 
faster and easier. 

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And this gets us to the third 
and final reason I think they're

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in trouble. 
And this one I find particularly

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interesting. 
And the third reason is that the

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core business might not be there
forever. 

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And if it is there, it's going 
to change. 

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As we've seen. 
I have very little faith in them

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executing and importantly, 
managing that change. 

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A good example of this change is
Johnny Oliver and Sam Altman. 

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And now if you don't know 
Johnny, I've other than probably

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Steve Jobs and Tim Cook, there 
would literally be no Apple 

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today without him. 
He was this legendary designer 

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that came up with his team for 
most of the concepts between the

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iPod, the iPhone, iPod, and 
basically every iconic Apple 

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product that ever made the 
company what it is today. 

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And he just joined Open AI. 
So let that sink in from Evan, 

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Apple's most famous and most 
important designer ever. 

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The guy who literally shaped the
modern tech aesthetic. 

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He turned Apple from a computer 
company into a lifestyle brand, 

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has now sold his business to 
Open AI and partnered with Sam 

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Altman on creating what they 
call the next generation device 

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of the AI era. 
Sam Altman aims to ship 100 

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million AI devices and thinks 
that this collaboration could 

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add a trillion dollars in value 
to Open AI. 

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And with a number of leaked 
meeting recordings, Sam Altman 

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described their secret device as
some of them that will be fully 

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aware of the user's 
surroundings, unobtrusive enough

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to rest in someone's pocket or a
desk, and positioned as a third 

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core device that a person would 
put on their desk after a 

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MacBook and an iPhone. 
So while Apple is making the 

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apps on their phones look a 
little bit more transparent and 

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publishing papers on how AI 
doesn't even really work 

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properly, their former design 
genius is literally building the

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future AI hardware with one of 
their biggest potential 

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competitors. 
Because Open AI is the leader in

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consumer AI. 
That's where a massive chunk of 

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Open AI's revenue comes from. 
And this is just one example of 

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people trying to invent the next
consumer device. 

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Take Meta. 
They've actually partnered with 

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Ray Ban on glasses that take 
great photos and videos. 

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The audio quality is apparently 
really good and obviously 

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they're stylish enough to 
probably make people wear them 

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because it's Ray Ban and now 
Google is doing the exact same. 

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They're partnering with Warby 
Parker. 

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And if Google started shipping 
very nice looking glasses 

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powered by Gemini with real 
time, say, translation, vision, 

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AI, search and integrate into 
all of their services, what is 

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Apple going to compete with 
Siri? 

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Now, I can't say if any of these
potential devices could really 

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take over the iPhone, but again,
I don't believe that Apple could

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react and change and execute 
properly on this if it did. 

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So I'll give you one final 
important tape before I say 

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goodbye today. 
I don't think this is about AI 

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or design language or corporate 
dysfunction. 

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I think it's about a company 
that's built its entire modern 

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identity on being ahead of the 
curve and taking existing 

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technology and making it so much
better and redefining entire 

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product categories. 
The iPhone wasn't the first 

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smartphone, but it was one of 
the few that didn't suck. 

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Apple's whole thing was let 
others fumble around and then 

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we'll turn up and do it. 
Brian, this time they're turning

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up very late, empty handed, 
relying on other people's 

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technologies and are spending 
time publishing research papers 

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that seem to me quite petty. 
And the tragic part is this was 

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avoidable. 
Siri was around in 2011. 

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They had a seven-year head 
start. 

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But instead of building on that 
advantage, they let internal 

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politics and egos and nonsense 
destroying any potential 

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progress they could have made. 
Almost all of this was 

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happening. 
Open Eye was just busy changing 

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the world. 
I don't want to be completely 

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unfair here. 
Apple still makes good products,

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but as someone that has loved 
the way Apple have produced 

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industrial design at scale and 
appreciate how difficult it is 

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to create such incredible 
products that so many people 

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love and build their entire 
brand on, think different. 

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Well, it just leaves me very 
disappointed and it's a big 

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lesson of what not to do if 
you're a leader of an 

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organization right now. 
Embrace focus and start making 

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bets, otherwise you'll probably 
regret in a few years. 

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Anyway, thanks for today. 
I hope you enjoyed this episode 

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00:15:25,960 --> 00:15:29,160
and as always, share this into a
slot channel a WhatsApp chart to

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00:15:29,160 --> 00:15:33,280
a friend that lives Apple and 
may want to hear an interesting 

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00:15:33,280 --> 00:15:35,720
perspective. 
See you next week.

