In the end, Apple's 2024 Worldwide Developers Conference proved to be a flop, with the stock sliding 1.9%, its worst WWDC performance since 2010 and the 4th worst in the iPhone era.
It wasn't supposed to be like this: Apple was supposed to make the grand introduction of (Open AI's ChatGPT) artificial intelligence features and pretend they are the company's, leading to the long-overdue surge in AAPL stock which has painfully underperformed most pure AI names. However, once the market realized that Apple can even in house its own AI module, that's when the wheels fell off (the "introduction" of a calculator for the iPad did not help Apple's trailblazing image).
But the slump in AAPL stock was just the start of its woes. Shortly after the close, in response to OpenAI founder Andrej Karpathy's observation that the laughably named "Apple Intelligence" as it will be called (and which Elon Musk said it is "neither Apple nor intelligent") will be a persistent layer on top of the entire Apple operating system, Elon Musk made the casual observation that Apple's approach means that "we can never turn it off", in other words it is an always on spying system feeding the OpenAI LLM (and who knows what and who else) with constant data.
That's when the fireworks started.
Realizing that his sworn enemy Sam Altman (whose "non-profit" ChatGPT only exists thanks to funding from Musk in the first place) is using his chatbot to supplant Amazon as the most ubiquitous spyware system in the world by having it installed across the entire Apple ecosystem, Musk first responded to an X user that he might have to launch his own phone "if Apple actually integrates woke nanny AI spyware into their OS"...
... before directly telling Steve Jobs that "he doesn't want" the latest Apple product, and adding that "either stop this creepy spyware or all Apple devices will be banned from the premises of my companies."
And just to underscore that point, the Tesla CEO said that "If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies. That is an unacceptable security violation" and "visitors will have to check their Apple devices at the door, where they will be stored in a Faraday cage."
Musk saved the piece de resistance for last, slamming Apple as a dumb company which can't even come up with its own AI, and even dumber for promising it is "somehow capable of ensuring that OpenAI will protect your privacy" even as it is "handing your data over to a third-party AI that they don’t understand and can’t themselves create is *not* protecting privacy at all!"
The punchline: "Apple has no clue what’s actually going on once they hand your data over to OpenAI. They’re selling you down the river."
While we assume that much of Elon's outrage is genuine (mixed in with just a smidge of personal self-interest to have Grok handle the world's AI requests), this particular eruption by the world's richest man (or 2nd, or 3rd, or wherever he is now) is a good example of the coming AI wars where competing AI vendors will do everything in their power to have their LLM be the sofrware of choice for the entire world due to its ubiquitous data gather and analysis which will make China's "always on" spying nanny state seem like amateur hour by comparison.