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Apple probably saved themselves untold billions by not rushing in AI. It could be argued they are a little late to having a local LLM built into their device, but well I'm just not sure how much demand there is even for one.
Your right that Google's search moat is probably going to push them to the top of whoever the final victors are...
Moreover, local LLMs are getting so good, its hard to even predict how any of this will playout. Local LLMs are already nearly good enough to replace most routine coding task, certainly good enough for home automation, etc.
An open question: Is Anthropic / OpenAI / etc profitable? Last I heard they weren't....what would real SOTA model use be if users had to pay actual prices?
What local AI is as good or at least close to Claude Code with its current models? I'd love that to be true.
Long term I do think local AI will be the way just as many other technologies get smaller and more economical. I do think Anthropic is at the head of the pack. But it's hard to not see how Google with their compute and resources will not eventually win.
I mean... did they? Apple never had a lead in AI? What are you talking about? Apple has never competed in software. They excel at hardware and haven't blew money on AI. Google will likely win the AI game in the long run and Apple will partner with them or someone else. Cook is getting old though and it's probably a good time for a change.