Editor’s note: “The ‘iPhone For AI’: Betting Big On Artificial Intelligence” was previously published in October 2023. It has since been updated to include the most relevant information available.
Despite all the hype surrounding the internet throughout the 1990s and early 2000s, the internet didn’t really take off until Steve Jobs introduced the iPhone in 2007.
Until the iPhone’s release, the internet was something a few people used for work and even fewer used at home.
Then Apple’s (AAPL) iPhone put the power of the internet in the palm of our hand. And suddenly, the internet had gone mainstream, and internet companies started making money hand over fist.
Sure, internet stocks did fine before the iPhone’s launch. But as a group, internet stocks only rose 60% between the late 1990s and January 2007, when Jobs introduced the first iPhone.
Yet from January 2007 to today, internet stocks have soared more than 450%.
And the iPhone is what thrusted internet stocks into hyperdrive.
So, why is this important from where we sit? Well, I believe we’re about to get the iPhone for AI.
In many ways, AI parallels the internet. The two are both productivity game-changers. Like the internet, AI will allow us to do things faster, better, and cheaper.
Over the next 20 years, AI will unequivocally change society, just like the internet has over the past 20 years.
But even the internet didn’t go mainstream and truly change the world until the iPhone launched.
Similarly, AI won’t go mainstream and truly change the world until it has its own “iPhone moment.”
AI Is Swiftly Approaching Its ‘iPhone Moment’
OpenAI is arguably the top AI firm in the world. After all, it is the company that developed ChatGPT, the buzzy AI chatbot that kickstarted this whole AI Boom just under a year ago.
Now OpenAI is working to develop the iPhone for AI.
And it’s not going at it alone. In fact, it’s actually creating a global tech “super team” to build this AI iPhone.
For this mammoth project, the firm is teaming up with Jony Ive – the lead designer of the original iPhone – and Softbank CEO Masa Son – the world’s largest tech investor.
OpenAI is providing its AI technology. Ive is providing the design expertise. And Son is providing a whopping $1 billion in funding.
This is a tech super team embarking on a tech super project.
And the result will change the world. Thanks to the work of this super team, we’ll soon have a device that will put the power of AI in everyone’s hands, just as the iPhone did for the internet 15 years ago.
What will such a device look like?
No one knows – but we do have some clues.
Putting AI in the Palm of Our Hand
OpenAI’s biggest investor is tech titan Microsoft (MSFT). And both Microsoft and OpenAI are huge investors in another AI startup, Humane.
Humane was founded by two former Apple employees. And for years, the startup has been working to develop the next evolution of the iPhone.
Recently, Humane unveiled the culmination of its work: the Humane AI Pin.
Essentially, this wearable device – no bigger than a police badge – has all capabilities of an iPhone compacted into a shirt pin. There’s no screen, no keyboard, no headset or goggles.
It’s just a pin. And it uses cameras, sensors, projectors, and a microphone to interact with its wearer and their surroundings.
Now, details on this AI pin remain scant. But in Humane’s recent presentation, one of the firm’s founders used the pin to take a call, translate English to French, ask about the health specifications of a candy bar, and summarize the daily news.
A full unveiling of the Humane AI Pin is expected in a month. Rumor has it that the company will also start selling the pin in November, too.
Is this pin the future? Will OpenAI’s “iPhone for AI” take a similar form?
The Final Word
But we believe that what OpenAI builds with Jony Ive’s design input and Masa’s funding will be far superior.
Regardless, the future is sprinting toward us.
Some folks are calling AI a bubble – a fad or “hype train” just like NFTs were a few years ago.
Do so at your own peril.
History will be as unkind to those folks as it was to the people who laughed at the internet in the 1990s.
We’re confident that AI will change the world even more than the internet did.
And the pace of that change will skyrocket once OpenAI, Jony Ive, and Masa unveil the “iPhone for AI.”
To prepare for that pivotal moment, do everything you can to invest in the AI Boom before that vision becomes a reality.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.