MONETIZE AI

“There's a couple different things happening in terms of the services business. First off, the most lucrative that nobody really appreciates is Google Search in the Safari browser. Google pays Apple over $20 billion a year to be the default search in the Safari browser. That's somewhere around a fifth of the company's profits, which is really remarkable when you think about it.”

“With Gemini, we're introducing the ability to do multi-step reasoning. So instead of just looking for one piece of information, you can ask Google to find the best yoga studios in a certain neighborhood, check their ratings, and then show me which ones have a specific introductory offer, all in a single search.”

“The beauty of natural language is that you don't have to think about how to keyword your query anymore. You can just ask a question like you're talking to a person, with all the nuance and context included, and the LLM can understand the intent behind those words much better than old systems could.”

“I don't buy it anymore. What I mean is, listen, he may well be the second greatest founder of all time. Behind Elon, look what he's done in five years, right? But I am just so burned out of the boy who cries wolf. Every job's going to be destroyed. Everything is insecure. Everything, like enough already. I can't open the Strait of Hormuz myself. Let me just use my tokens.”

“John Ternes will take over as CEO of Apple on September 1st. He's been at the company for 25 years. John Ternes is a 50-year-old hardware engineer, mechanical engineer by training. He's been with Apple since 2001. He's an Apple lifer. Four years after he graduated, he came to Apple and steadily rose up the ranks. He's central casting for corporate CEO, just to look at the guy, tall, thin, good looking.”

“We know that for Search to be successful, the web ecosystem has to be successful. That’s why we focus on including links within AI Overviews. We find that the links included in AI Overviews actually get higher click-through rates than traditional web listings because the user is already primed and interested in that specific source.”

“One area Apple has also lagged in is artificial intelligence. While other tech giants like Google and Facebook have spent billions of dollars building AI models, Apple hasn't. Siri, you know, look at the modern chatbots. They are, if they are human, then Siri's a Neanderthal. She's pretty, yeah, not very smart. And they're trying to update that, but they're playing from behind.”

“Mythos just kicked off on its own, agentically goes and looks at all the code and finds them on its own. It's the difference between a rifle and a machine gun. In one sense, both of them can kill someone, but one shoots one bullet and then stop and reload and the other just spews bullets out. The speed at which this can process, reason across large cold bases means that they're just going to find more bullets, they're going to shoot more bullets.”

“The Elon discount rate is zero, and the Elon probability of failure rate is zero, to get to two trillion. It appears to be the most expensive IPO at scale of all time. I think it's a two-way fight, and Tropic has the advantage of clarity and focus. OpenAI has the advantage of the consumer business.”

“Most recently, he ran hardware engineering for all of Apple's products. Historically, Apple has the people who design the products, who wanted to have a certain look and feel, and it has the hardware guys who figure out how to make the design team's dreams come true. He's the one who makes the products come alive on that team. He solves problems, you know, they go to the meeting, he keeps it focused, let's not waste time, he gets to a solution.”

“Information quality is our North Star. As generative AI makes it easier to create content, we have to be even more vigilant about surfacing authoritative sources. We use our existing ranking systems to ensure that we aren't just summarizing anything, but summarizing the most reliable information available.”

“When he took over, this was a company that was worth $300 billion. As of today, it's worth $4 trillion, which is a monumental increase in market capitalization. Well, I mean, gosh, the hardest thing for him is how do you increase value for a company that's already trading at $4 trillion? Stepping into the shoes of these two predecessors is got to be tough.”

“One area Apple has also lagged in is artificial intelligence. While other tech giants like Google and Facebook have spent billions of dollars building AI models, Apple hasn't. Siri, you know, look at the modern chatbots. They are, if they are human, then Siri's a Neanderthal. She's pretty, yeah, not very smart. And they're trying to update that, but they're playing from behind.”

“If the other side now have machine guns, then you've got to build tanks. So what security is might change. The vendors who step up and meet the challenge will triumph and the ones who don't will fall away. You're going to want way more defenses because the bad guys are more heavily armed. The part that didn't make sense is the cyber stock should go down.”

“Jobs was the iconic technology CEO. He had defined the way humans interact with computing devices for 30 years almost, maybe more. So that was quite a legacy for Tim to match. And he didn't try. He didn't try to be the innovative product visionary that Jobs was. He handed that off to others, and he really focused on operations.”

“Most recently, he ran hardware engineering for all of Apple's products. Historically, Apple has the people who design the products, who wanted to have a certain look and feel, and it has the hardware guys who figure out how to make the design team's dreams come true. He's the one who makes the products come alive on that team. He solves problems, you know, they go to the meeting, he keeps it focused, let's not waste time, he gets to a solution.”

“One of the things we've seen as we've rolled out AI Overviews is that people are actually using Search more and they're more satisfied with the results. When people have these complex questions that used to take a lot of work to piece together, AI Overviews can do that heavy lifting for them, which then encourages them to search even more often.”

“One innovation that is underappreciated by a lot of people outside the industry is Apple Silicon. The chips in the devices are all Apple chips. And that's been true for iPhones for a long time. It wasn't true for Macs. Macs ran on Intel chips until 2020, when they started ripping them out and putting in Apple chips. Apple chips are really great.”

“John Ternes will take over as CEO of Apple on September 1st. He's been at the company for 25 years. John Ternes is a 50-year-old hardware engineer, mechanical engineer by training. He's been with Apple since 2001. He's an Apple lifer. Four years after he graduated, he came to Apple and steadily rose up the ranks. He's central casting for corporate CEO, just to look at the guy, tall, thin, good looking.”

“There's a couple different things happening in terms of the services business. First off, the most lucrative that nobody really appreciates is Google Search in the Safari browser. Google pays Apple over $20 billion a year to be the default search in the Safari browser. That's somewhere around a fifth of the company's profits, which is really remarkable when you think about it.”

“The other thing that presents challenges for Apple, their commitment to privacy. Apple has a ton of personal data on its users, but company policy prohibits them from using it. And you talk to people inside Apple, that's actually frustrating for them, because there's a lot of stuff they'd like to be able to do, but they don't have access, right? Your stuff's encrypted, they have to jump through lots of hoops to get permission to do anything with data, to train a model.”

“Jobs was the iconic technology CEO. He had defined the way humans interact with computing devices for 30 years almost, maybe more. So that was quite a legacy for Tim to match. And he didn't try. He didn't try to be the innovative product visionary that Jobs was. He handed that off to others, and he really focused on operations.”

“If your agents are only 60% as good, you're in a slow death spiral. As more and more apps are built by AI, the number of issues is going to explode. If Mythos and Friends lets bad actors find every site the second it launches with any PII and steal it, we may enter an era later where sites get more secure, but we're going through a transition phase where security is just getting worse and worse.”

“When he took over, this was a company that was worth $300 billion. As of today, it's worth $4 trillion, which is a monumental increase in market capitalization. Well, I mean, gosh, the hardest thing for him is how do you increase value for a company that's already trading at $4 trillion? Stepping into the shoes of these two predecessors is got to be tough.”

“Ads are a really important part of how the internet works and how Google works. We are constantly experimenting with how to integrate ads into the AI-generated experience in a way that is helpful to the user and clearly labeled, ensuring that the commercial intent matches the user's needs.”

“The other thing that presents challenges for Apple, their commitment to privacy. Apple has a ton of personal data on its users, but company policy prohibits them from using it. And you talk to people inside Apple, that's actually frustrating for them, because there's a lot of stuff they'd like to be able to do, but they don't have access, right? Your stuff's encrypted, they have to jump through lots of hoops to get permission to do anything with data, to train a model.”

“One innovation that is underappreciated by a lot of people outside the industry is Apple Silicon. The chips in the devices are all Apple chips. And that's been true for iPhones for a long time. It wasn't true for Macs. Macs ran on Intel chips until 2020, when they started ripping them out and putting in Apple chips. Apple chips are really great.”