Apple succumbed to the hype and will bring us one step closer to the AI dystopia that we've all been hoping for.

In the near future, your iPhone won't just be smart;

it'll be intelligent.

And I'm not talking about artificial intelligence, but Apple intelligence. Yesterday, Apple changed the world by bringing AI to everyone.

And by that, of course, they mean everyone with an iPhone 15 Pro or better.

It's able to do amazing things, like analyze all your photos and email to prompt chat GPT, help you cheat on your homework, and send creepy generated photos to your friends on their birthday, and so much more. Because we're talking about Apple, this new feature is already receiving a delusional level of praise from the mainstream.

But it does have some haters, like Elon Musk, who made an empty threat to ban intelligent Apple products from his companies.

And in today's video, I'll explain the unpopular opinion of why Apple intelligence is actually kind of dumb. It is June 11th, 2024, and you're watching The Code Report.

Yesterday, Apple gave the keynote for its Worldwide Developer Conference.

But the reality is that WWDC is not for developers;

it's for shareholders.

Apple Inc.

used to be the most valuable company in the world but was surpassed by Microsoft and Nvidia just a few days ago.

That's unbelievably humiliating, and for the last year, everybody's been asking, when is Apple going to do something with AI? Well, yesterday, Apple made a genius move.

They rebranded the acronym AI from Artificial Intelligence to Apple Intelligence, an idea it stole from Alibaba.

Surely, a $3 trillion company has the resources to train its own large language model.

Well, apparently not.

Basically, Apple Intelligence is able to understand the context of everything that's going on on your device, like your emails, photos, and so on.

This experience is built into apps throughout the system, then perform useful actions, like set reminders in your calendar based on what's going on in your life. Now, Apple does have its own AI models that run on-device, and it will attempt to use those as a first resort.

But if those models are too dumb to get the job done, it'll then prompt GPT-4 remotely.

You'll be able to access chat GPT for free.

And that sounds pretty similar to those creepy Copilot Plus PCs that everyone was freaking out about last week.

To be fair, Apple does have a much better reputation when it comes to privacy, but how could they possibly share your data with OpenAI remotely and still call that private? Well, they introduced a new thing called Private Cloud Compute that allows your phone to offload complex jobs to the cloud.

Apple claims it will never store your data.

Your requests and information will not be logged.

And this private cloud will be audited by third parties to ensure your private data is not leaking somewhere it shouldn't be.

However, the reality is that your data is being processed by some closed-source software on a server connected to the internet that's not yours. Apple has always stated that it will never let the government use the backdoor, but for anyone who truly cares about privacy, this is likely not acceptable.

What's even more crazy, though, is Apple's partnership with OpenAI.

Their tech now has its tentacles inside both Microsoft and Apple products.

And Apple Intelligence is a big win for Microsoft because they're entitled to 49% of OpenAI's future profits.

It's a really interesting throuple situation that we've got going here.

And Apple might even let Google get in on the action, too, by offering Gemini as an alternative to GPT-4. Ultimately, though, normal people don't care about privacy, and they just want a useful iPhone.

The new features in Siri will allow you to get a lot more done by just talking to your phone, and it makes these new devices like the Rabbit R1 even more dead than it was on arrival.

But Apple Intelligence also killed a bunch of other startups.

Like, it'll also be able to rewrite text and fix grammar, thus making Grammarly obsolete.

But the coolest app was this hand-drawn AI calculator, which will make virtually every other calculator app obsolete.

In addition, your iPhone will also be able to generate crappy AI pictures, and you can even create your own custom emojis.

But really, the biggest thing that died yesterday was anything that was a chat GPT wrapper because now your iPhone is basically just a chat GPT wrapper.

That's pretty awesome, but if you're just a poor loser with an iPhone 15 standard or worse, you're not going to get Apple Intelligence.

We all know that Apple's MO is FOMO, but it takes a lot of computing power to run AI models.

The A16 chip on the iPhone 15 only has 6GB of RAM, and the NPU can do 17 tops, while the A17 Pro has 8GB of RAM and can handle 35 tops.

That's a pretty big difference, but we're only looking at the baseline here.

We are just getting started. Apple just built a foundation to grip us with AI FOMO for the next 10 years.

But if things keep going at this rate, it's only a matter of time before the iPhone becomes more intelligent than you are.

At which point, it can truly optimize your happiness by recommending you buy a flip phone and switch to Linux. This has been The Code Report.

Thanks for watching, and I will see you in the next one.