Gerstner is asked about Apple evaluating Perplexity and other LLM providers for potential partnerships.
“I haven't heard your thoughts on the revelation that people inside Apple were kicking the tires at Perplexity and some of the other LLM providers and AI companies.”
Gerstner suggests Apple should acquire AI capabilities given their $2 trillion market cap and cash position.
“What's your opinion on the build it versus buy it debate around Apple? I feel like for $2,025,000,000,000, they should just buy it, just given how much cash they have”
Gerstner says only 5% of Apple users can access Apple intelligence, requiring device upgrades.
“only 5% of Apple users today can access Apple intelligence. So they're going to have to upgrade these devices in order to play.”
Gerstner suspects OpenAI's integration with Apple is deeper than publicly disclosed, creating unequal competition.
“I suspect that the integration going on with OpenAI is deeper than what we heard about yesterday. Right? So I don't know that this is going to be everybody playing equal.”
Gerstner estimates Apple needs 75 gigs of DRAM on phones to run 7B on-device models.
“I think the question that Apple's probably struggling with, Bill, is in order to do that, even a 7B model, you probably have to have, you know, 75 gigs of DRAM on your phone, right?”
Gerstner argues memory and context matter more than raw intelligence for AI assistants.
“Or would you like to have an assistant that's just above average intelligence, knows everything about you, and they can use the Internet?”
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