Apple (APPL) stock is taking a beating because of AI. Not because they don’t have AI, or enable customers to access AI, but because they aren’t hopping on the AI hype bandwagon.
Maybe Apple learned an important lesson from the self-driving car debacle: the Valley’s techno-optimists are often wrong, but never uncertain. Just as we won’t be letting our robot overlords drive us around, nor will we be turning our lives over to AI agents. And Artificial General Intelligence (AGI) is no more likely than a mass-produced flying car.
Apple is in the business of creating great products that reliably solve real problems. AI isn’t reliable now, and it isn’t clear that it ever can be at the level we need for critical systems.
Once the Valley is done blowing through trillions of investor dollars it will be on to the next shiny thing. Apple is right to step back from hype, just as it stepped back from self-driving cars, despite spending billions on the effort. If it saves them more billions on AI, it was money well spent.
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