OpenAI's GPT-4o: Google, Apple at 'risk' if they don't catch up

OpenAI announced a new flagship chatbot called GPT-4o, which can operate in 50 different languages with improved speed and quality, according to Chief Technology Officer Mira Murati. This announcement comes ahead of a potential deal between OpenAI and Apple (AAPL) to put ChatGPT in iPhones, Bloomberg reports.

Moor Insights & Strategy Founder and CEO Patrick Moorhead joins Market Domination to give insight into the announcement from OpenAI and its potential deal with Apple.

Moorhead outlines why this announcement was important for OpenAI despite lagging evidence about the impact of AI adoption: "Technology is always slower to be adopted than we all think it's going to. In Silicon Valley, it comes overnight. But the reality is to hit typical consumers and even businesses come years after use. But you have to show off the latest and greatest to get people excited. It's kind of like the beginning of an investment bubble, right? Let's get everybody excited. Let's show the capability we're going to hit the trough of disillusionment at some point, but it's to get people tied in."

For more expert insight and the latest market action, click here to watch this full episode of Market Domination.

This post was written by Nicholas Jacobino

Video Transcript

Open A. I announces this new flagship model.

They say smarter, faster.

First, just give us your response to the news.

What you heard today, Patrick?

How you think it impacts kind of the broader kind of competitive environment we find ourselves in?

Yes.

First off, timing is everything.

So tomorrow's Google's big Google IO conference.

They're the king of search.

They're the kings of advertising.

And this was clearly time to give Google Google advertisers, uh, something to think about.

Obviously we have apple WW DC in a few weeks and yes, it impacts them because they want to get out and define what the quote unquote best intelligent agent or assistant experienced is.

And this brought together brings together a voice.

It brings together, uh, images and videos and text in a very interesting and and human like action mode.

So, uh, what I continue to struggle with and I don't know if this changes the paradigm.

OK, so chat GP T comes out early, you know, late 22 early last year explodes in interest.

All of these grand predictions about how it's gonna change the world.

You and I are still sitting here in person.

My life hasn't changed at all as a result of this.

I know some people who use it as a tool.

Fine in corporate America.

They're integrating it to some degree, but it's still kind of unclear.

Like where?

Where's the big deal?

Where, like, where's the thing that's gonna be?

This revolution that seems to have been promised?

Yeah, so technology is always slower to be adopted than we all think it's going to in Silicon Valley, right?

It it it comes overnight, But the reality is to hit consumers and even businesses.

Uh, come years after use, But you have to show off the latest and greatest to get people excited.

It's kind of like the beginning of an investment bubble, right?

Let's get everybody excited.

Let's show the capability we're gonna hit the trough of disillusionment, uh, at some point.

But it's to get people, uh, uh, tied in.

Now, when it comes to software and services we can use on our smartphones like jet chat GP T 40, uh, it is a much faster time to use than let's say, building a new product like the rabbit that you, you know, stick on on your lapel.

that unfortunately bombed early.

But, um, I, I think it's a good testament to what we should expect to see from a Google, an apple and even a Microsoft.

Do you?

Do you think Patrick, though, for big tech investors who are listening right now, how concerned should they be that users start using open a chat?

G BT more and more and relying less and less on big tech voice assistance, So it is a risk.

I don't think it's a midterm risk, Uh, but if Apple and Google don't get in there and plug the whole or potentially for Apple's case, a line with open air, it could spell trouble.

Because if you look at the biggest applications that that just took took the world by storm, like Facebook, it was initially free.

Google Search was free with no ads, right, so you weren't paying for it.

And this the same type of risk.

If you get eyeballs and experiences coming in, you could op, uh, open A. I could monetize that multiple ways through a service payment through advertising through, essentially sending you to another chat bot.

For a company that does make money, a food services company on airlines.

That's how it could be monetized.

And that is a potential risk to both Google and Apple and speaking about Apple.

There was also a report that Apple is indeed gonna be partnering with Open A I for some version, maybe of its chat bot or on the upcoming phone cycle.

Do you think that that is gonna happen?

Do you believe that that is gonna happen?

And then what are the implications?

Not just for Apple, but for Google.

In that case?

Yeah.

So I put the odds at about 5050 that we'll we'll see the two come together.

There could have been some of the leaks that saw Mac OS desktop app that was announced today, and they took that to the next level.

But Apple does need help in certain areas, and there's two types of a I.

There's on device I I, which would be on the iPhone and the iPad and the Mac.

And then there would be the cloud based service.

I believe if there's going to be any deal, it would be cloud based services, maybe a type of deal Where Google pays Apple today 20 to $30 billion to get, uh, Google search as the default search on the iPhone.

Maybe this is a deal like this, or maybe a.

It's less of a payment, but more of a quid pro quo.

Apple has to have, um, very good on Device A I or or literally, uh, it's gonna spell trouble for Apple because that's what it does.

It's all about on device.

It's not about the cloud.

Apple's biggest level of sophistication on the cloud is backups and streaming media and video, which in in aggregate, aren't that, uh, complex.

And if you recall back things like mobile me, we were just complete disasters.

I do believe that we will see a Siri relaunch at WW DC.

Uh, and it will incorporate generative A I potentially some help from Open A I.

And again, it's not just one model you're looking at probably 40 models that have to be addressed in between what's on the device and at the cloud to do different types of things