Guys, I don’t think Tim Cook knows how to monetize AI

Apple exceeded expectations reported quarterly earnings On Thursday, it revealed that it generated $143.8 billion in revenue, an increase of 16% over the year. As pundits peppered CEO Tim Cook with softball questions during Apple’s earnings call, another pundit tried to ask a question that it seems no one in Silicon Valley wants to ask.

“When I think about your AI projects, you know, it’s clear that there are additional costs associated with it… Many of our competitors have already integrated AI into their devices, and it’s still unclear what kind of investment they’re seeing as a result of AI…,” started Erik Woodring of Morgan Stanley.

Could there be nervousness under the face of this Finance Man who is probably very money? In what I can only imagine must be Herculean courage, Woodring asked a question that only lingers in the darkest, wettest depths of investors’ minds.

“So, how do you monetize AI?” he asked.

You would think that this would come up a lot. You may be wrong. Instead, Big Tech has taken a vibes-driven approach to AI development. Take OpenAI, for example, which may seem like it’s on top of the world, because of how ChatGPT has embedded itself in social media. But the company they are not planning to make money until 2030. Researchers from HBSC doubt even that time, especially since it will require another investment of $ 207 billion, they estimate. Ask anyone in tech how OpenAI plans to break it, and you’ll be met with expressions similar to the ¯\_(ツ)_/¯ emoticon.

But good thing Tim “$143.8 billion” Cook was having a good day, so maybe he could talk about how the company plans to recoup its money.

His answer was disappointing.

“Well, let me just say that we’re bringing intelligence to a lot of things that people love, and we’re integrating it into personal and private tools, and I think that’s going to create a lot of value, and it’s going to open up a lot of opportunities for our products and services,” Cook said.

So, there you have it, folks. Apple will make money on AI by creating “value”. And, in fact, this “will open many opportunities.” What we will experience in “products and services.” Great!

Well, shout out to that Morgan Stanley guy for trying.