The Real Reason Why Openai Spent $ 6.5 Billion on Jony Ive He Startup – ryan

Openai’s Decision to Buy Jone I Gadget Company, Io, Is About Distribution.

The generating he has entered a new stage. It used to be about creating the best he models, but they’re all Pretty Similar these days.

Who ultimately Wins Will Depend a Lot More on Distribution, and Less on the Quality of the Underlying Technology.

Getting Chatgt and Other Other Openai Models and Products into the Hands of USSERS – That’s What Really Counts. Without that Direct Relationship, These Products Won’t Be Used As Mucch, or it will a lot to get the offferings to indirectly.

Ive Designed the Ultimate Distribution Tool for Technology, Apple’s iPhone. Then he left and started work on io, a new type of Device Company Built for the AI.

He COULD SPARK A WAVE OF NEW GADGETS

While Phones Still Dominate, General it Could Change that. We might all wear smart glasses with he chatbots budilt in. Meta, Apple, Google, and Other Working on This. We COULD HAVE A LITTLE CLIP THINGY ATTACHED TO OUR SHIRTS, SO CAN CONVERSE Constantly with it patterns and chatbots. Who knows what else might work in this new era?

Either way, if you’re sam altman running openai, you don’t want to have Google or Meta or Apple Standing in BetWeen You and Your USSERS. You know what happens then? You end up Having to pay for distribution. Mark Zuckerberg Despises Being an App on Apple’s Mobile Device Platform, Which Takes A Juicy 30% Fee from Many Developers. Google Pays Apple Roughly $ 20 Billion A Year to have it it heaves it distributed on iPhones and Other Apple Gadgets.

DOES ALTMAN WANT TO PAY APPLE $ 20 BILLION IN A FEW YEARS? Does he want to give Tim Cook 30% of the Revenue Openi Generates from Chatgt Paid Apps on iPhones? Of Course Not.

One Solution is to Hire the Original iPhone Designer to Build Openai’s Own Gadgets. This quote Stood out to me in the openai announcement about the deal with and his io company.

“It Became Clear that Our Ambitions to Develop, Engineer and Manufacture a New Family of Products Demanded an Entirely New Company,” Altman and Ive wrote.

If this hardware Journey Costs Billions of Dollars, It Could Be Cheaper than Paying Other Tech Giants for Distribution. And at the least you control your own destination and have that directs with users.

io vs io

I’m Writing this from Google Io, The Internet Giant’s Annual Conference. Altman love to crash this party. He did it last year, and he doing it again today. It ‘s all the most perfect because ive’s device company is calmed io.

My interpretation of this party-croshing is that altman could be prey worked about Google.

Despite that Very Expensive Deal With Apple, Google is a Master of Distribution, and it is used to be disposal to quickly get it he products and tools as many hands as Possible. These are the offferrings that Compete directly with chatgt.

Here are some examples of Google’s Distribution Power, taken partly from this week at Google and partly from Google Has Been Doing for the past 20 years or so. For a startup like openai, this must be terrifying.

  • Android, Google’s Mobile Operating System, Supports More than 3 Billion Devices. The Company is prominently displaying its gemini he chatbot service on as many android gadgets as positionible.
  • There are Are Millions of Pixel Devices and ChromeBooks Out there. And guess what? Google is Weaving Gemini Into Many of these Phones and Laptops.
  • Chromebooks, Android, and Pixel Are Mainly Ways to Distribute Google Technology to users directly. Chrome is the default browser on these gadgets. This Week at io, Google Showed off How Gemini Is Now Baked Into The Chrome Browser. That’s suddenly More than 1 billion users who will see Gemini every day, and they could have ussing this chatbot, Rather than chatgt.
  • Then there’s the Big Kahuna: Google Search. The Company Announched Several Ways that Its New He Technology is Being Weaved Into Search. There’s a new he mode that launched acres the us on tuesday. Suddenly, roughly 250 million People will see – and probably use – he mode regularly. Because IT’S BAKED INTO Top of the Search Page Prominently. There are Are About 1.5 Billion Daily Users of Google Search.

This is the type of distribution power that startups can only dream of. If Openai Really Wants to Compete With Tech Giants, it badly Needs Ive’s New Gadgets – and a host of Other Distribution.

Distribution = Data = Better he

Why is this so important? Well, he produces only really get better when a lot of People use say regularly. Google Cofounder Larry Page use to call this the toothbrush test: if your product is used twice a day, forget about it.

If that happens, he companies can Collect Mountains of Data on How users are behaving. That information information product updates. But in the generatory he wind, this date is also also incredibly valuable for new Developing he models and related products. This data can be pumped into training new models, with Certain user permissions. It can also be used for fine-tuning and other he Development techniques.

The most you have, the better. Again, this data feedback loop only work if you have distribution – Massive Distribution.