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Apple WWDC 2026: Finally Delivering on AI Promises · In the Loop AI

0:00
Josh: Two years ago, Tim Cook got on stage at Apple's Worldwide Developer Conference
0:04
Josh: and announced what I believe to be the most amazing set of features in the history
0:08
Josh: of Apple, Apple Intelligence.
0:10
Josh: It turned out to be the most disappointing WWDC of all time.
0:13
Josh: It was a complete and total failure, so much so that they are still currently
0:18
Josh: dealing with lawsuits around false advertising for how big of a flop Apple Intelligence was.
0:23
Josh: They promised us the world, they delivered absolutely nothing.
0:26
Josh: In fact, the iPhone that they built for that year in particular for Apple intelligence
0:30
Josh: is not supported by Apple intelligence.
0:33
Josh: This sounds like a disaster, but just yesterday, Apple had an opportunity to
0:37
Josh: fix this wrong, to write the things that they were not able to do the first time.
0:41
Josh: And I got to say, I'm very impressed. I think this year's WWDC left a significantly
0:46
Josh: different taste in my mouth than the last one, because this year was all about AI.
0:50
Josh: And for the first time ever, we have features that are actually going to work.
0:54
Ejaaz: I remember filming last year's WWDC episode and us just being thoroughly disappointed
1:01
Ejaaz: with just the lack of AI stuff. Like they just didn't pay it any kind of attention
1:06
Ejaaz: and they delayed it yet another year.
1:08
Ejaaz: Up until yesterday, actually, Siri couldn't even tell you which month we were
1:12
Ejaaz: in. And that was ironically one of the demos that they showed yesterday.
1:16
Ejaaz: Anyway, a slew of new AI updates.
1:19
Ejaaz: The two flagship headline updates from Apple is Siri is now Siri AI.
1:24
Ejaaz: Powered kind of by Google's Gemini model and also by Apple's own foundational
1:29
Ejaaz: model, which brings me to the second major headline announcement.
1:32
Ejaaz: We've got four to five brand new Apple foundational models, which can run both
1:36
Ejaaz: locally on your device as well as through their own private compute server.
1:39
Ejaaz: And we're going to get into a lot of the details about how this actually works.
1:42
Ejaaz: But my main takeaway from yesterday's WWDC is that Apple is finally taking AI
1:49
Ejaaz: seriously. And while some of the feature updates that we're going to go through
1:52
Ejaaz: may seem like they're kind of basic.
1:55
Ejaaz: Collectively, they actually make your life way, way better. And you listening
1:58
Ejaaz: to this, if you have any kind of an Apple device, an iPad, an iPhone,
2:02
Ejaaz: a MacBook Pro, whatever it might be, you can use a net new feature,
2:06
Ejaaz: once these features actually roll out by the end of the year,
2:09
Ejaaz: which will change the way that
2:11
Ejaaz: you work. And it's done over or across 3.5 billion active Apple devices.
2:16
Josh: So yesterday, they kind of oriented this presentation around three key pillars.
2:20
Josh: The first was stability. The second was kind of how you can use it with your
2:23
Josh: children and security and privacy.
2:25
Josh: The third was AI. We all want to talk about AI. We want to hear about AI.
2:28
Josh: Let's get into the AI first.
2:29
Josh: It's now Siri AI, like you mentioned. And what we're seeing on screen is unique
2:33
Josh: and novel. It's demo that's in real time that actually works.
2:37
Josh: And this was something that I found uniquely interesting for this presentation
2:41
Josh: in general. Generally, when Apple has these things, they have these very pre-produced
2:46
Josh: demos that look very good, that operate very well. When we saw them initially
2:49
Josh: released two years ago, they looked incredible.
2:51
Josh: The difference now is you'll notice that there's no cuts happening in this demo.
2:55
Josh: They're not doing it for speed. They're not doing it for time.
2:57
Josh: They're doing this for proof that it actually works.
3:00
Josh: So what we're seeing on screen is someone from the Apple team who is actually
3:03
Josh: asking it to search his text messages and uncover a text message about a specific
3:07
Josh: song and then go off and play that song.
3:09
Josh: And for the first time ever, Siri has the context. So what we're seeing now
3:13
Josh: is he's showing it a screen from Instagram and Siri can see the content of your screen.
3:19
Josh: It could understand where that location is and then it could route you there on your maps.
3:23
Josh: And this is something unique and novel only to Apple where it has the full permissions of your phone.
3:28
Josh: It could see what's on your device. It can actually engage with your device.
3:31
Josh: And it does everything that I think we imagined and always hoped it would,
3:35
Josh: which is just have full context of your entire life and be able to turn that
3:39
Josh: into some useful information and useful actions.
3:41
Josh: So for me, this was exciting because this was kind of definitive proof that it actually worked.
3:46
Josh: And what we'll notice as we go through the demos from yesterday is that this
3:50
Josh: is actually available for developers right now. So people have been testing it.
3:55
Josh: They have shown that it worked. And there's a lot of cool features that they actually released.
3:58
Ejaaz: I think the concept that we're describing here is basically like grounded context.
4:04
Ejaaz: We've spoken about personal AI agents a lot on this show. And the reason why
4:07
Ejaaz: we've done that is a lot of people think that the best AI features,
4:11
Ejaaz: the best AI models is only achievable if the model is actually larger,
4:15
Ejaaz: the bigger it gets, the more compute that it has.
4:18
Ejaaz: Whereas in reality, you can have a smaller model that is trained on your own
4:22
Ejaaz: personal data that you don't necessarily want to share with ChatGPT or Claude.
4:26
Ejaaz: And it could do this so in such a private way that you can create a much more
4:31
Ejaaz: personalized AI experience.
4:32
Ejaaz: And so some examples that we're about to run through that is summarized by Marques
4:36
Ejaaz: in this tweet is basically, you know, you can message Siri and say,
4:39
Ejaaz: hey, do you remember that restaurant that my friend was talking about about a month and a half ago?
4:45
Ejaaz: I think it was somewhere in my neighborhood and it pulls it up.
4:48
Ejaaz: Or you could say, hey, could you look at my recent location history and let
4:52
Ejaaz: me know what that place was there, saw that beautiful sunset,
4:56
Ejaaz: it and it'll be able to tell you.
4:57
Ejaaz: And it's these little nuances that you can't really achieve in ChatGPT or any
5:01
Ejaaz: kind of LLM chatbot simply because it's not grounded in any particular context.
5:05
Ejaaz: Now, that all sounds great, but let's walk through some examples specifically. So you mentioned that.
5:12
Ejaaz: Siri Air can react to things that are on the screen. This is a classic case
5:16
Ejaaz: where I'm updating my iOS, right?
5:18
Ejaaz: And I don't want to stare at the iOS screen to see when it's finished updating.
5:22
Ejaaz: So I say, hey, Siri, can you set a timer for when this finishes?
5:25
Ejaaz: And it knows what you're talking about.
5:27
Ejaaz: It sees the amount of time remaining and it sets that specific timer,
5:30
Ejaaz: which I thought was pretty cool. And then we've got another example here where
5:33
Ejaaz: it's like, when was my flight last month? And it pulls up your flight manifestor,
5:37
Ejaaz: goes through your email app or your calendar app or whatever that might be.
5:40
Ejaaz: And it says, I think that's your flight to Budapest. It was a British Airways
5:43
Ejaaz: flight. You left at this time and you arrived at this other time.
5:47
Ejaaz: And then there's this other one, which I kind of cracked up at.
5:51
Ejaaz: Where you get a text from someone and it says, you know, have you heard of this plant called Calathea?
5:57
Ejaaz: And it's basically like a tropical house plant. And Siri summarizes it,
6:01
Ejaaz: basically saying the exact same thing that's in the text.
6:04
Ejaaz: Now, the point I'm making here is that it's not exactly perfect.
6:07
Ejaaz: There's some kinks that we need to work out, but I can already see myself using
6:12
Ejaaz: this and it being hugely valuable, even though it's in this V1 format.
6:16
Josh: It's funny, as I was watching this announcement yesterday, I'm sitting there
6:18
Josh: and I'm like holding these two months in parallel. One is that like,
6:22
Josh: oh my God, this is unbelievable. I can't believe Siri works.
6:25
Josh: The other is, okay, so what you're telling me is all this is just to deliver
6:28
Josh: on the promises that you should have made years ago.
6:31
Josh: So it's like, it is this amazing novel experience, but it's like,
6:35
Josh: okay, yeah, they've been working on this for a very long time, we haven't got it.
6:37
Josh: So while we are enthusiastic, it's like finally, thankfully, this actually works.
6:42
Josh: And I think it's important to really understand how big of a deal this is. I think
6:47
Josh: When a lot of people use AI, the thing that they are missing the most is the context.
6:53
Josh: And we have memory when it comes to Anthropic and OpenAI, and you have like
6:57
Josh: a loose memory based on what you've spoken about, but it doesn't have full access to everything.
7:01
Josh: A lot of people, their whole lives live on their devices.
7:04
Josh: It lives on the data on their phone, on their laptop.
7:06
Josh: Apple is the iCloud account that runs all of that. And having the full contextual
7:10
Josh: awareness to go off and then make actions on your behalf is a huge thing.
7:14
Josh: And at the core of this is Siri AI. is Siri that actually works.
7:18
Josh: I mean, for the last, what, five, six years, I've had Siri disabled.
7:22
Josh: It's been worse than useless. In fact, it just gets in the way whenever it hears
7:25
Josh: its name and it gets summoned.
7:27
Josh: Finally, there's an opportunity to turn it back on and start using it.
7:30
Josh: And I think that's a really big deal for, because for those people who don't
7:33
Josh: want to go and subscribe to a frontier model, they don't want to pay $20, $100, $200 a month.
7:39
Josh: They are just interested in personalized AI. This is a huge opportunity, a huge market for Apple.
7:45
Josh: In addition to the developers, I mean, this is a developer conference.
7:49
Josh: Apple developers now have access to these really nice quantized local models
7:52
Josh: that run on your phone that now have the ability to do edge inference on any
7:56
Josh: application that they want.
7:57
Josh: So if I'm an app developer, I'm going to the app store right now because I'm
8:01
Josh: getting AI inference tokens for free that I could deliver near instantly because
8:05
Josh: it's run locally to my customers on my Apple devices.
8:08
Josh: And that's a huge unlock for anybody who's building for the platform anyone
8:11
Josh: who's using the platform and while it did take them a long time it's here and
8:15
Josh: we always talk about apple has an install base of how many tens of billions
8:18
Josh: of devices that now have edge inference ability
8:21
Josh: on device and that's such a huge unlock like i
8:24
Josh: I think this is very much version one now. This is the starting point of this
8:28
Josh: new paradigm of AI first hardware devices.
8:31
Ejaaz: I think there's also some important context to provide. Like if you're an investor
8:35
Ejaaz: and you've been watching Apple over the last couple of years,
8:37
Ejaaz: you just have one clear statement to say about them, which is they just messed up.
8:43
Ejaaz: They completely left the AI race to all the other players.
8:47
Ejaaz: They didn't train their own foundational model and they didn't burn as much
8:50
Ejaaz: capital, but also they got left behind in this entire race.
8:53
Ejaaz: And then you might be asking, well, how have they been able to produce these
8:56
Ejaaz: AI features that are seemingly quite good when you've got Google,
9:00
Ejaaz: Microsoft, and Amazon spending upwards of $260 billion this year alone on AI CapEx?
9:06
Ejaaz: Well, there's two answers to this. One of them you just kind of lightly touched
9:09
Ejaaz: on, which is Apple probably has the largest moat of consumer data of any singular company, right?
9:17
Ejaaz: They have 3.5 billion devices every day collecting all these kinds of personal
9:22
Ejaaz: grounded contacts, which they can use to train a model.
9:25
Ejaaz: When you look at Chinese open source models, a big question that is being asked
9:28
Ejaaz: right now is, how have they been able to catch up with the American Western
9:33
Ejaaz: models that are spending so much money and the Chinese models aren't doing that?
9:36
Ejaaz: The one answer is data. Duwakesh had a really good paper that he released yesterday
9:40
Ejaaz: where he explains that it's primarily data. If you can get access to really
9:43
Ejaaz: personal data, you can train a pretty good model. So that's one way Apple's been able to do it.
9:48
Ejaaz: But the other thing is the elephant in the room, they signed a massive partnership
9:52
Ejaaz: with Google to get access to their Gemini model specifically.
9:56
Ejaaz: Now, the way that people frame this partnership in their head is,
9:59
Ejaaz: oh, they're just going to plug
10:00
Ejaaz: Google's Gemini model into Apple's Siri and that's the brain behind it.
10:05
Ejaaz: And that's partially true. They do use Google's 1.2 trillion parameter model, but it's also not true.
10:11
Ejaaz: Apple has created a series or a slew of different models called Apple foundational
10:16
Ejaaz: models that are versions of models that they've trained by themselves on their
10:20
Ejaaz: own servers, on their own GPUs.
10:22
Ejaaz: At home versus a kind of distilled effect from Gemini or Google's Gemini specifically.
10:28
Ejaaz: There was actually an agreement which got leaked, I think like two weeks ago,
10:32
Ejaaz: which showed that Apple gets access to Google's Gemini model weights,
10:36
Ejaaz: which is just crazy for some kind of proprietary agreement where they pay them
10:39
Ejaaz: a billion dollars a year.
10:40
Ejaaz: So it's this mixed relationship, this mixed partnership, which has allowed them
10:45
Ejaaz: to kind of achieve this particular type of model that we're seeing on screen today.
10:50
Josh: Yeah, and it has some pretty cool technology, how it works. Instead of forcing
10:53
Josh: the entire model into DRAM, which we've talked about many times on the show,
10:56
Josh: if you haven't, go find the episode.
10:58
Josh: The model is actually stored in flash memory. And because the NAND and DRAM
11:01
Josh: bandwidth is too slow to swap weights back and forth, they actually process
11:06
Josh: it on like a per prompt basis. So it's just much faster.
11:08
Josh: It's much more lightweight. It's this kind of novel architecture that they're using.
11:12
Josh: And I imagine a lot of people are going to slowly start to mimic that.
11:15
Josh: And it's also important to note that these models use a novel architecture.
11:19
Josh: They're using DRAM and SRAM to pass things off to each other in ways that are
11:23
Josh: faster and efficient than you traditionally could have.
11:25
Josh: And I think that's why the models aren't going to be running on the iPhone 16
11:29
Josh: Pro, even though they claim that it was built for Apple intelligence,
11:32
Josh: because it really is pushing the limits of the hardware that they have on device.
11:36
Josh: Now, what are the types of things that you can do with that on device intelligence? They're
11:40
Josh: pretty freaking awesome. One of my favorite demos from the whole event that
11:44
Josh: they snuck in with one sentence, it was like three seconds of the whole event,
11:47
Josh: was the ability to split the bill with Siri.
11:49
Josh: So you could actually take a photo of a bill. Let's say you're at a restaurant
11:52
Josh: and you had a receipt that gets dropped on the table.
11:55
Josh: You take a photo, send it to the group chat. Everyone can be assigned what they bought.
11:59
Josh: They could pay with Apple Pay. You're done. You're on your way.
12:01
Josh: It is so clean. It is so cool.
12:03
Josh: There's a second feature that I love, which actually surprised me because it
12:06
Josh: relies on agents to go ahead and do this, is you can fix your password agentically.
12:12
Josh: So inside of Apple, inside of iOS and macOS, there is a passwords app where
12:16
Josh: it'll safely and securely store your passwords for all the accounts that you have.
12:20
Josh: It'll also go out and see if those passwords have been leaked,
12:24
Josh: if they're being reused, if there is any sort of security compromise that's
12:27
Josh: happened to those passwords.
12:29
Josh: And what this new agentic system will do is within the app, it will go out and
12:33
Josh: reset the passwords for you.
12:35
Josh: So if you have an insecure password, if you have a password that's been reused,
12:38
Josh: it'll go off in the background, it'll go into the browser, it'll log in using
12:41
Josh: your credentials, it'll change the password, and then it'll populate the new
12:44
Josh: one into the app without you ever having to do that again. So the days of having
12:47
Josh: to reset your password as you forgot it,
12:49
Josh: Those are in the past. And I think these types of use cases seem silly.
12:53
Josh: They seem small, but they increase the quality of life so much for the day-to-day user.
12:59
Josh: And this is at the core of what they spent almost a third of the show talking
13:03
Josh: about, which is just stability.
13:05
Josh: Like people just want a stable operating system that works and all the features
13:09
Josh: that are advertised worked. And that's what we have. So these two features in
13:11
Josh: particular were very exciting for me.
13:13
Ejaaz: There's something about giving an AI agent access to my passwords that just
13:19
Ejaaz: doesn't sit well with me right now. But maybe I just need to like use the feature
13:22
Ejaaz: and let it change my life.
13:24
Josh: They've been refining this for how many years now that they couldn't figure
13:27
Josh: it out? They've been workshopping this, man.
13:29
Ejaaz: They had all the time. Their timelines are measured in centuries. That's so funny.
13:34
Ejaaz: Kind of similar on like the idea of like how Apple approaches their kind of
13:38
Ejaaz: like design when it comes to AI.
13:40
Ejaaz: We had to like look at the system prompt itself. So with all of these AI models,
13:45
Ejaaz: with all of these AI agents, including Siri. It's not too different from any of the other AI models.
13:49
Ejaaz: It has a base system prompt, which the company, in this case,
13:52
Ejaaz: Apple feeds it in order to kind of like give it its personality and give it
13:56
Ejaaz: understanding of how it's supposed to act.
13:58
Ejaaz: And I'm not going to go through this entire system prompt, but it's just interesting
14:02
Ejaaz: to see that they use visual richness,
14:05
Ejaaz: like quite a few times in this paragraph where they're basically saying,
14:09
Ejaaz: Siri, like you aren't just a chatbot LLM, you visually understand the importance
14:14
Ejaaz: of design in this person's life.
14:17
Ejaaz: And you must make visually rich choices like you must see what they see.
14:21
Ejaaz: You must think how they think and care for them in a particular way,
14:24
Ejaaz: which honestly, I haven't seen in any other kind of system prompt when I look
14:27
Ejaaz: at my Claude or ChatGPT now.
14:30
Ejaaz: I want to spin back to something which kind of gets into the infrastructure
14:34
Ejaaz: of how all of this works because I actually think Apple's made a breakthrough
14:38
Ejaaz: in AI model architecture, which not a lot of other companies have.
14:42
Ejaaz: And we've said on previous shows that Apple has the perfect architecture and
14:46
Ejaaz: kind of device system to run AI models locally and privately,
14:50
Ejaaz: and that gives them a significant advantage in the world or realm of AI agents specifically.
14:56
Ejaaz: Now, I want to briefly go through their foundational models.
14:59
Ejaaz: It's something called Apple Foundational Models, and there are about four or
15:02
Ejaaz: five of them which they release. And there's a voice one, there is an LLM-based
15:07
Ejaaz: specific thing, there's a transcription agent, and there's quite a few others.
15:10
Ejaaz: You have it on our screen here. We've got AFM Cloud, AFM Cloud Image,
15:13
Ejaaz: and there's a few different features that kind of collectively feed into their Siri AI system.
15:18
Ejaaz: But what interested me the most was their 20 billion parameter model.
15:23
Ejaaz: Now, before you get bored, I just want to explain why this is super important.
15:27
Ejaaz: Typically, to run a 20 billion parameter model on your phone,
15:30
Ejaaz: on any kind of Apple device, it would be nigh on impossible because the chips
15:35
Ejaaz: are just not too bleeding edge and it results in a very slow architecture.
15:41
Ejaaz: Now, what they did was something very smart. You mentioned two memory types
15:44
Ejaaz: earlier on, Josh. You've got the NAND flash memory and you've got random access memory, RAM.
15:50
Ejaaz: What they've done is they engineered both of these memories in such a way that
15:54
Ejaaz: you can access a 20 billion parameter model at lightning speed for super cheap
15:59
Ejaaz: costs. This is not something that any other device architecture has been able to achieve.
16:03
Ejaaz: And the only reason why they were able to do it was because of Apple's supply
16:06
Ejaaz: chain. They have one of the biggest and best silicon moats across the world.
16:11
Ejaaz: And they were able to exercise that. And there's like a three tier routing system.
16:14
Ejaaz: So any kind of simple prompts where it's like, hey, can you check my text messages?
16:17
Ejaaz: Can you like tell me what my friend said last week?
16:20
Ejaaz: That runs completely on device, privately encrypted. It never leaves it.
16:24
Ejaaz: It doesn't even need an internet connection at that point.
16:26
Ejaaz: And then any kind of medium-sized request gets routed to their private cloud
16:29
Ejaaz: server where it's still encrypted, but it kind of like routes to another server
16:32
Ejaaz: that's not on your phone.
16:33
Ejaaz: And then for the heavier stuff, it gets sent to Google Cloud specifically,
16:36
Ejaaz: run on NVIDIA GPUs, again, still encrypted. So privacy is at the core of Apple's
16:42
Ejaaz: foundational architecture.
16:43
Ejaaz: And that might sound like an unsexy thing to announce, but it's actually crucially
16:48
Ejaaz: important if you're going to start sharing a lot of your personal information,
16:51
Ejaaz: your financial information, your grocery list, your personal texts with an AI.
16:55
Ejaaz: It's important that that's kept at a privacy level and Apple's really focused
16:59
Ejaaz: on that, which I thought was really cool.
17:01
Josh: Yeah. In fact, at the end of the presentation, Craig Federighi went on stage
17:05
Josh: or he was on camera saying it's actually not even rolling out to the EU just
17:08
Josh: yet because the EU will not allow this amount of encryption on the services that are being offered.
17:14
Josh: They don't allow for a complete and total privacy. And that's actually what
17:17
Josh: Apple is doing. Same thing with China.
17:19
Josh: They're not releasing it in China right now. And they said they're working with
17:22
Josh: legislators to get it over there because they will not compromise on the privacy, on the security.
17:27
Josh: And I think that's a seriously big deal.
17:29
Josh: And when I think about, I recall the bull case or the bear case that we mentioned
17:33
Josh: probably close to a year ago now, which was the ability to have like on-prem
17:38
Josh: compute on the edge inference, like on your local device in a secure and private
17:42
Josh: way with all of your context.
17:44
Josh: And that has not actually been a real consideration because no company has been
17:48
Josh: able to do it. But starting later this year in fall, when iOS 27 is coming out,
17:52
Josh: when all these new updates come out, it's going to be a real thing where
17:56
Josh: If the average person wants to use AI, all they have to do is hold down the
17:59
Josh: power button on their phone and activate Siri.
18:01
Josh: And that gives them enough AI to get done the things that matter to them,
18:06
Josh: to get done all of the contextual tasks, to have small agentic abilities,
18:10
Josh: like going and change your passwords, but also being able to plan a trip.
18:12
Josh: And all of that now is going to live within the Siri application,
18:15
Josh: which is now a standalone app
18:17
Josh: on your phone, similar to what you're used to with ChatGPT, with Claude,
18:21
Josh: with Gemini, where you start a conversation, you continue a conversation,
18:24
Josh: except you never have to train this AI on memories about you.
18:28
Josh: It has all of the memories.
18:29
Josh: It's totally private. You can trust it with your data. Your data is already
18:33
Josh: there. It's an incredibly compelling offering if you are AI curious and you're
18:37
Josh: not a power user who pays 20, 100, $200 for these premium AI services.
18:41
Josh: And I think for a lot of people, that's gonna be enough.
18:44
Josh: So we're gonna see what the implications of that are as this gets rolled out
18:47
Josh: through the end of the year and it's next year in the sense that is this actually
18:50
Josh: going to make a dent in these subscriptions of the larger AI labs because people,
18:55
Josh: it turns out, they don't actually care too much for frontier intelligence.
18:58
Josh: They don't need to go solve biology problems or chemistry problems.
19:01
Josh: They just want to be able to plan their calendar, schedule their grocery delivery
19:05
Josh: automatically, and make sure it's all managed internally by their AI.
19:08
Josh: I mean, it's something I think a lot of people are going to be very intrigued to want to use.
19:12
Ejaaz: Yeah, if you're looking at this just from like an investor perspective,
19:17
Ejaaz: this could be a real problem if Apple actually scales this up, right?
19:20
Ejaaz: Because it proves that like small models work and you don't need a large model
19:24
Ejaaz: and also the cheaper less frontier models are just sufficient enough for people now um,
19:30
Ejaaz: With the concept of subscriptions versus paper usage, I believe Apple is just
19:34
Ejaaz: letting people use their inference and AI features for free.
19:38
Ejaaz: But there's a daily usage limit or like a paper usage limit that might come
19:43
Ejaaz: into effect after you've hit
19:44
Ejaaz: a particular limit. What those tier packages look like, I have no idea.
19:48
Ejaaz: I think it would be crazy if Apple subsidized 3.5 billion active Apple devices.
19:53
Ejaaz: But I think we're going to start to see some kind of a subscription package
19:56
Ejaaz: where it's focused on giving like 80% of Frontier intelligence for free.
20:01
Ejaaz: And then like, if you want anything after that, you can kind of like pay,
20:04
Ejaaz: you know, on a usage based type thing.
20:06
Ejaaz: Now, I have one qualm with all of this, Josh, which is,
20:10
Ejaaz: if you bought a very expensive iPhone 16 a few years ago, which they marketed
20:15
Ejaaz: and advertised as built from the ground up for AI, you can't run like 75% of,
20:23
Ejaaz: of the AI features that they announced yesterday.
20:25
Ejaaz: You need something of the iPhone 17 or 18 and above because of the chip device
20:30
Ejaaz: architecture that I was mentioning earlier.
20:32
Ejaaz: So this is something that I guess, like, is not the greatest thing.
20:36
Ejaaz: It might be another false advertising issue, but, you know, if you had a two-year-old,
20:40
Ejaaz: device that you bought from Apple and you're thinking like, hey,
20:42
Ejaaz: I wanna run a bunch of these features that are rolling out by the end of the
20:45
Ejaaz: year, you can't actually do that.
20:48
Josh: Yeah, it's a bummer. I mean, Apple messed this up a couple of times over.
20:50
Josh: And also a note on the usage limits.
20:52
Josh: Craig actually, during the presentation yesterday, spoke about them briefly,
20:56
Josh: where if you're using local inference on device, you have unlimited infinite.
20:59
Josh: If you're querying the private cloud server, you get a certain amount.
21:02
Josh: The overflow will be directed through your iCloud account, your iCloud service package.
21:07
Josh: So if you're paying $5 a month for two terabytes of storage or whatever backup,
21:11
Josh: that will be enough to kind of absorb the extra queries that you have.
21:14
Josh: So it's already baked into where you are. There's no separate subscriptions.
21:17
Josh: It's all under one roof in terms of this.
21:20
Josh: Yeah, I mean, it sucks. Last year, everyone was buying the new iPhone 16 built
21:23
Josh: for Apple intelligence.
21:24
Josh: Apple intelligence didn't exist.
21:26
Josh: Now that it does, the phone is not compatible. It sucks. It's a bummer.
21:30
Josh: And it's particularly a bummer because of some of these additional features
21:33
Josh: that I do have to share in the photos app. The photos app is getting a really amazing upgrade.
21:40
Josh: And as I was watching this, I have like the ghost of see if I was past perpetually in my head.
21:45
Josh: And I know that he is sitting here cringing because so much of the art form
21:49
Josh: of photography is the real raw and natural way that it comes out,
21:53
Josh: Not the digitized version.
21:54
Josh: What they've done is they've, they've stepped it up. They've taken it all the
21:57
Josh: way to the furthest degree in three features that they announced cleanup,
22:01
Josh: reframe and extend. These are the three core pillars of your new photo app.
22:04
Josh: If you take photos, if you own an iPhone, you're going to love this.
22:07
Josh: So the cleanup feature is basically what we're seeing on screen here is an original
22:11
Josh: photo of someone holding a card in front of their face.
22:14
Josh: In iOS 26, it lacked the contextual awareness to understand what your face actually
22:18
Josh: looked like. So it turned you into a blob. You kind of had like a fudgy nose
22:22
Josh: with like really mixed up eyes.
22:24
Josh: IOS 27 solves this. It applies real intelligence to these photos.
22:28
Josh: It really makes it look like a big deal. Reframe is the second feature.
22:33
Josh: I think reframe is probably the one that I'm most excited about.
22:36
Josh: Reframe will take a photo that you've shot that is framed pretty poorly if you
22:40
Josh: didn't frame it well if it didn't look so good on the first version what it
22:43
Josh: does is it turns it into a splat we're seeing on screen it turns into a 3d splat which basically
22:48
Josh: adjusts and adds layers to the image so there's real depth it allows you to
22:52
Josh: zoom in pan tilt and move the image and then any parts the images that are lost
22:57
Josh: it will actually generate in the background afterwards so you can very quickly
23:01
Josh: reframe it and then it will generate afterwards in your camera roll and it leaves
23:04
Josh: you with really compelling results where, I mean, what we're seeing on screen
23:07
Josh: is this is a totally different image.
23:09
Ejaaz: I'm looking at the background, Josh. Can you see it? Like I'm looking at this
23:13
Ejaaz: person's face over here and I'm wondering whether it gets distorted a bit in
23:16
Ejaaz: the background, but it is a very cool feature. No, it's cool.
23:19
Josh: Yeah. It's amazing. So that's the second one, reframe. The third is something
23:23
Josh: that's really cool that we've, I mean, granted we've had these for a while.
23:25
Josh: We haven't had reframe, but we've had extend for a while in Photoshop,
23:28
Josh: but extend is now making its way to iOS as well. So if you've taken a photo
23:32
Josh: and you need to fill the edges, if you want to remove something,
23:35
Josh: if you need to kind of zoom out, this is what Xtend will do.
23:39
Josh: It will take an image, it will build artificial borders around it that look
23:43
Josh: real, that are artificially generated, but are meant to be hyper-realistic.
23:47
Josh: And this is all leaning on the visual AI local model that runs on your device.
23:51
Josh: You can see on screen, it just generated an entire coffee shop around a uptight,
23:56
Josh: up-close shot of coffee.
23:58
Josh: So it's really impressive. I think a lot of people are going to use these.
24:00
Josh: A lot of people are going to love these features.
24:02
Josh: The example they used inside of the demo on the actual presentation was just
24:06
Josh: photos of your loved ones if you take poor photos that you don't want to lose
24:10
Josh: that moment you can actually manipulate the moment in such a way that
24:14
Josh: it still maintains the integrity of it but captures it in a way that's much
24:17
Josh: more just delightful to see so this in particular was something i'm really excited
24:21
Josh: to use as someone who loves the phones for the photo features having these tools
24:25
Josh: natively built into photos app two thumbs up
24:27
Ejaaz: Okay, so when I was a kid, one of the things I enjoyed doing,
24:30
Ejaaz: because I was such a cool guy, and I had lots of cool friends to hang out with,
24:33
Ejaaz: was play around in the virtual simulator. So I would like, fly around the world
24:38
Ejaaz: and be able to like, see the world for what it is.
24:40
Ejaaz: It looked very much like how Minecraft looked today. And what Apple released
24:45
Ejaaz: yesterday was something pretty
24:46
Ejaaz: cool, which is that 3d Gaussian splat version for Apple Maps itself.
24:51
Josh: And I mean, so sick,
24:52
Ejaaz: Like, I don't need to do I don't need to say anything. Just take a look at this video.
24:56
Ejaaz: This looks so hyper-realistic the trees don't look like broccolis anymore in fact like
25:02
Ejaaz: if you weren't right if you didn't know this was a gaussian spot you would just
25:05
Ejaaz: assume this was like an aerial shot drone video of like your city of new york
25:10
Ejaaz: or wherever you might be so the purpose of this i guess is to make uh travel
25:15
Ejaaz: or navigation way more interactive
25:17
Ejaaz: and way more intuitive for you like maybe you're like looking for a particular
25:20
Ejaaz: shop front but you don't know what it looks like it can like point out like,
25:23
Ejaaz: hey, this is where you are and you can kind of recognize your surroundings around you.
25:27
Ejaaz: Just a really cool feature and use of Gaussian spots.
25:29
Ejaaz: I know that we've been wanting to make an episode on this for a while at Limitless.
25:33
Ejaaz: And some of the examples that we've shown in the past has been primarily focused
25:37
Ejaaz: on Hollywood studio effects and recreating movies from scratch for a couple
25:40
Ejaaz: hundred grand versus millions of dollars.
25:42
Ejaaz: This is a real practical application that will be live by the end of the year
25:47
Ejaaz: in 3.5 billion Apple active devices, which will be super cool to see.
25:51
Josh: Yeah. And we got to put on our conspiracy hats a little bit here because why
25:54
Josh: is it that we only talk about Gaussian splats, 3D splatting when we mentioned Apple?
25:58
Josh: Why is it that they're the only company doing this? And I think a lot of what
26:01
Josh: happened at WWDC this year was just returning to their roots,
26:05
Josh: patching all their bugs, building and establishing a new foundation in which
26:09
Josh: they could then launch the new hardware architecture on top of.
26:13
Josh: John Ternus, the new CEO, this sadly was tim cook's last wwdc
26:18
Josh: after this john turnus steps in he's a hard work guy what tim cook is leaving
26:22
Josh: him is this really strong foundation to then build this next level of hardware
26:26
Josh: on so when we look at these splats
26:27
Josh: how accurate they are when we look at the photo app how it's so good at understanding
26:31
Josh: three dimensions and 3d splatting a lot of this is the infrastructure and the
26:35
Josh: foundation for the next suite of hardware devices for the glasses that they
26:39
Josh: are going to be working on
26:40
Josh: and you'll note that there was a lot of rumors over the past couple of weeks that
26:44
Josh: apple has fully scrapped to their Vision Pro program.
26:46
Josh: The large goggles that everyone loves, I mean, that I love that were largely
26:50
Josh: considered a flop, but I think were the most impressive piece of hardware ever.
26:54
Josh: They're no longer on the upgrade path. They're not going to continue to iterate on those.
26:58
Josh: They're going to build glasses instead. What are those glasses going to rely
27:01
Josh: on? A lot of things like this. Splats. Why?
27:04
Josh: Because splats are very low bandwidth, high fidelity versions of reality that you can interact with.
27:11
Josh: And when you're trying to run these things locally on device,
27:13
Josh: on something as small as glasses, it's really important to have that architecture in place.
27:18
Josh: And what we're seeing here is early tastes of what these future devices are
27:21
Josh: going to look like deployed as really fun products. So we have Google Maps that
27:25
Josh: has really great splats.
27:26
Josh: Why are they doing that? Because they're improving their splat technology for
27:29
Josh: this next generation of hardware.
27:31
Josh: And I think that's really important to note. Another thing that was really exciting
27:34
Josh: is, or maybe not exciting for some,
27:36
Josh: Is that they didn't actually capture any surface area. A lot of times at WWDC,
27:41
Josh: we make the joke of like, what startup are they going to kill this week?
27:44
Josh: Who are they going to like destroy, knock out of business because they replaced
27:47
Josh: their feature? And the answer today was nobody.
27:49
Josh: There's really no novel new things that they were trying to replace.
27:53
Josh: They were just going back to the basics. They're making everything that should
27:55
Josh: have worked in the past work currently, for example.
27:58
Josh: On my Mac, when I press the search bar and I go to search for something,
28:02
Josh: it takes 10, 15 seconds to populate.
28:04
Josh: If I'm searching my email in the mail app, That search bar sucks,
28:07
Josh: dude. I can't find any emails that I want. It's so bad. So they spent this WWDC
28:12
Josh: really just fixing everything, building the foundation for this next frontier of hardware.
28:17
Josh: And I see on screen, you're teasing a resizing feature that also infers there's
28:22
Josh: another piece of hardware coming separate from these glasses that we could expect pretty soon.
28:26
Ejaaz: Yeah, so for a lot of people seeing this demo on screen right now,
28:30
Ejaaz: they might just kind of like look past and be like, okay, whatever, who cares?
28:34
Ejaaz: What we're seeing on the screen is basically the UI or the user interface being
28:38
Ejaaz: resized in real time, flipping between an iPhone orientation to an iPad orientation
28:44
Ejaaz: to maybe even a full MacBook Pro screen sizing.
28:47
Ejaaz: The reason for this is they're reformatting the code, Xcode specifically,
28:53
Ejaaz: for their rumored new device that is going to be a foldable phone.
28:57
Ejaaz: So you should be able to flip between a regular iPhone-sized screen and an iPad-sized screen.
29:02
Ejaaz: And so Apple is really prepping not just their software, but for their future
29:07
Ejaaz: of hardware, which is going to look very much like the new world of AI or for a new era of AI.
29:14
Ejaaz: And it's going to involve a lot, not just like screen and visual outputs,
29:17
Ejaaz: but it's going to involve a lot of transcriptive stuff.
29:20
Ejaaz: It's going to involve a lot of voice-based AIs, as we've seen with the Apple foundational model.
29:24
Ejaaz: So I think the way, if I had to summarize WWDC of this year,
29:29
Ejaaz: I would say that Apple is laying the foundation for taking AI a lot more seriously going forward.
29:35
Ejaaz: And I think with John Turnus at the helm, hardware is going to be at the forefront
29:39
Ejaaz: of their focus. I think they have the foundational elements.
29:41
Ejaaz: They have the Apple Vision Pro, which was just kind of too expensive and not
29:44
Ejaaz: accessible to enough people.
29:46
Ejaaz: They're rumored to be working on a new set of glasses, which has been derived
29:49
Ejaaz: from the hardware that they built using Apple Vision Pro.
29:52
Ejaaz: They're rebuilding their entire iOS system. They've got Siri as their main flagship
29:55
Ejaaz: AI system, which, by the way, doesn't need to use Google Gemini models in the future.
29:59
Ejaaz: It could technically be an orchestrator. That's how they described it on yesterday's
30:03
Ejaaz: event, that it could be an orchestrator of different models.
30:06
Ejaaz: It could be Apple's own foundational models. It could be ChatGPT in the future.
30:10
Ejaaz: It could be Claude in the future. The point is, if Siri AI is the funnel,
30:14
Ejaaz: then Apple owns the entire distribution.
30:16
Ejaaz: And that alone is the most important or rather bullish investment case for Apple alone.
30:22
Ejaaz: Now, despite this, the announcement yesterday of WWDC sent Apple stock cratering
30:26
Ejaaz: around 6%. So I think that was a classic case of buy the rumor, sell the news.
30:31
Ejaaz: But I do think if you're taking a long-term perspective on Apple,
30:34
Ejaaz: at least for me specifically, I'm incredibly optimistic about where they're
30:38
Ejaaz: going to take this simply because they have one moat.
30:41
Ejaaz: OpenAI and Anthropic don't have, which is just so much user data and intents
30:47
Ejaaz: and the hardware to be able to distribute it on.
30:49
Ejaaz: OpenAI is working on their own AI device. They haven't released it yet.
30:53
Ejaaz: And once they do, it's going to be really hard to scale.
30:55
Ejaaz: Anthropic, for all I know, isn't working on a hardware device yet.
30:58
Ejaaz: Maybe they will in the future.
31:00
Ejaaz: But in order to ramp up and compete with Apple, the only other company that can do that is Google.
31:04
Ejaaz: And they're kind of sequestering their own AI model to Apple to use for a billion
31:08
Ejaaz: dollars a year and giving them access to model weight.
31:10
Ejaaz: So I think if you're looking at Apple as an investment case,
31:13
Ejaaz: if you're looking at Apple and thinking, how will they fare in the future for
31:16
Ejaaz: AI? I think they're going for the consumer AI mode specifically.
31:20
Ejaaz: And I think they're really well positioned to do so.
31:22
Josh: Yeah, I think sentiment for me personally, at least, changed in a meaningful way this time around.
31:27
Josh: There was no flashiness, there was no like selling the magic, which is a bummer.
31:33
Josh: But that's not what this needs to be. This needs to be stability,
31:36
Josh: returning to the roots, building that strong foundation, establishing a place
31:39
Josh: in which they can build their next form factor of hardware on top of and in
31:45
Josh: there was very much a mission success and what a gift this is to john turnus
31:48
Josh: the new ceo from tim cook to hand off a
31:51
Josh: feature complete software stack ready for the next generation of hardware which
31:56
Josh: he specializes in and we just need to take a moment to appreciate tim cook one
32:00
Josh: more time because this is the last event that he's going to be doing um
32:02
Josh: The next hardware event is going to be in september that is going to be for the iPhones.
32:06
Josh: That's when John is going to be starting his journey as CEO of Apple.
32:10
Josh: And Tim did the impossible thing of taking over a company from what a lot of
32:14
Josh: people deem as the most incredible entrepreneur of all time,
32:17
Josh: Steve Jobs. And he did that 15 years ago in 2011.
32:21
Josh: And over that 15-year run, he managed to take Apple on a, I think, 2,200% growth rate,
32:29
Josh: of a stock that was impossibly challenging to scale to follow up the most challenging
32:35
Josh: CEO role of all time. And he's just a superstar. He just did a really great job.
32:40
Josh: He managed to steer Apple away from a lot of the drama that could have got them in trouble.
32:44
Josh: Although like the company, they did lack magic during this time.
32:46
Josh: They didn't have any incredible products or hardware.
32:49
Josh: They did the basics right. And still to this day, 15 years later,
32:53
Josh: I am using exclusively Apple products for everything that I do.
32:57
Josh: And outside of the software that they just fixed, I have no complaints.
32:59
Josh: So it was a pretty incredible run by Tim Cook. Just got to give him some props for what he did.
33:05
Josh: And now I'm just really excited for the next generation of Apple.
33:07
Josh: This very much feels like a fresh slate.
33:09
Josh: Tim Cook handed off a really strong company to John.
33:13
Josh: John is now going to take it forward with hardware. And personally,
33:16
Josh: this is what I'm most excited about. We have OpenAI with their AI First device.
33:19
Josh: Apple has a chance to get in the game. They're going to be doing it.
33:22
Josh: And the next couple of years are going to be awesome. We have the 20th anniversary
33:26
Josh: of the iPhone next year. We have a foldable this year.
33:28
Josh: We have the glasses coming probably next year, 2028.
33:33
Josh: I mean, this is a huge, fully stacked lineup. and Apple's got a shot at this thing now.
33:37
Ejaaz: I think something coming potentially sooner than that will also be like their
33:40
Ejaaz: earbuds that have all the airports that have the cameras and they've got some
33:44
Ejaaz: kind of other like pendant type device. Probably get it this fall.
33:46
Ejaaz: All rumors, but maybe this fall.
33:48
Ejaaz: And so I'm excited to see that go head to head with whatever open AI devices.
33:51
Ejaaz: But that brings us to the end of the episode. That is everything and anything
33:55
Ejaaz: you need to know about WODC.
33:57
Ejaaz: Very AI focused, which is what we like on this show.
34:00
Ejaaz: And thankfully things that we can actually use today. If you're a developer,
34:04
Ejaaz: I don't know if you mentioned this earlier, but you can get access to this for about 100 bucks.
34:09
Ejaaz: It might be a little tricky, too. You need to get that membership, but it is accessible.
34:13
Ejaaz: If not, these features will basically roll out by the end of the year.
34:17
Ejaaz: So lots coming by the end of the year. We've got all these IPOs.
34:19
Ejaaz: We've got all these new AI features, all these new rumored AI devices.
34:22
Ejaaz: It's going to be a big, big rest of the year.
34:25
Ejaaz: But that is it for this episode. Josh, any final thoughts?
34:28
Josh: Yeah, no, if you're a developer, if you have that license to go and download
34:31
Josh: iOS 27, you probably already know this, but don't download this on your personal devices.
34:36
Josh: The beta versions of all of these are notorious battery drainers.
34:39
Josh: They will destroy your phones. They're not meant for public use.
34:42
Josh: They're meant for developer use.
34:43
Josh: But if you do have it and you do install it on a second device,
34:46
Josh: let us know what you think. I'd be so curious to hear the reviews.
34:49
Josh: I've been on X scrolling, seeing all the features. I'm curious also just to know,
34:53
Josh: your thoughts on this. Are we, is Apple back? Are we forgiving Apple or can
34:58
Josh: we not forgive them for the fact that if your phone is one year old,
35:00
Josh: you can't even run the front tier models on your device.
35:02
Josh: I understand both sides. I understand both sides. They're both right,
35:06
Josh: but I want to hear which one you stand on. And yeah, that's,
35:09
Josh: that's the update. You are now fully up to date on WWDC.
35:12
Josh: We have a very exciting week of content coming, so please stick around for that.
35:16
Josh: But without any further ado, I think that wraps up. Thank you guys so much for
35:19
Josh: watching and we will see you in the next one.
35:22
Ejaaz: See you guys.