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- [00:00]
A
Speaking of Apple, one of their X stars, Johnny I've OpenAI just purchased his company for $6.5 billion and a ground groundbreaking deal. So what do we think about this, this acquisition?
- [00:19]
B
It further cements the new generation of tech and I'll say Fang is dead. They're going to have to re structure what the top five or four is after they go public. I've been calling for them to reconcile with Johnny for the longest time. It was brilliant that they launched this after the Google I O conference. But there's a lot of clash in Apple's culture that is preventing them from getting some of those suit former star players back together. And Sam Altman did a great job. I was telling Red Hat it maybe for at least three months, four months that they were going to team up and here we are. I don't like the idea of that circular pin that they want to put out as a first product. From what I have heard though, they have built their operating system first which is brilliant. Which tells me they could start to attack this thing eventually. So the first product they put out is incredibly important. But in terms of partnership like Microsoft, once again stock of the decade is going to benefit greatly from this partnership. But you can see the writing on the wall to see where Sam is trying to have his contingency plan to then get away so he can be the new tech darling in that space. I think brilliant partnership. The trailer was amazing. Whenever I see like two white men walk into a bar in San Francisco and they smiling. A lot of money on the table. Billions of dollars. Multi. Billions of dollars. And as people are getting tired of the iPhone, it was a brilliant idea to partner with someone who cares about product a lot when it seemed like Apple doesn't care about it anymore. All right, let's.
- [02:03]
C
Let's run down the list of the things that John I've has helped design or create himself.
- [02:07]
B
Yep.
- [02:08]
C
1998, the iMac. 2001, the iPod. 2007 the iPhone. 2010 the iPad.
- [02:16]
B
Hello.
- [02:16]
C
2008, the MacBook Air and MacBook Pro. 2015 the Apple Watch and 2013, the redesign of the iOS system.
- [02:28]
B
You probably should have kept that relationship together.
- [02:32]
C
Yeah, it's one of those. I read an interesting article. They were saying that OpenAI purchasing Next, which is his company, feels like a move that Apple would have done in the past, back in the day.
- [02:43]
B
Yep.
- [02:44]
C
You saw a company that had technology and had infrastructure that you need and could be a competitor, so you went and acquired it. The fact that it came from somebody that was Internal in house and you let it go. It speaks volumes because there's a lot of talk, especially you know, I'm reading like gadget.com the talk is that the gadget economy, the iPad, the iPhone and the MacBook watches. Yeah, that is slowly going to deteriorate and make way for a new form of consumer technology which would be the artificial intelligence assistant. And so having Johnny I've there with OpenAI technology, that first product, I'm interested in seeing what that does to Apple's infrastructure.
- [03:39]
B
Because they want to change the hardware.
- [03:42]
C
Because that's what I'm thinking, like what they're basing on talking about 50% of the revenue was coming from an iPhone. Well, if the iPhone is not a thing that people are using in the next five to 10 years, then what's the product, not the thing that we're going to be using in terms of how it communicates and how it functions with artificial intelligence, what is the product? Having the guy that helped develop those things with the technology that's going to lead the future is a dangerous proposition for them.
- [04:10]
A
Well then also for people because for full context, because they might not even know what the company is. So IO is a hardware and design firm focused on AI integration devices. And like we said, it is acquired by OpenAI for 6.5 billion. And when you do the stock, cash considerations. But it was designed to help build consumer facing AI products with intuitive screenless next generation interfaces. So there's an actual, a picture of it if you want to look on our Instagram because we posted yesterday. We posted about it on Instagram yesterday. So when he says, when Troy says the personal AI assistant, that's something that Robert Smith has spoke to us about and a lot of people have been talking about like at some point in time in the near future, everybody's gonna have a own, their own AI assistant that will plan your life. Like if you want to book a flight, if you want to, you know, go to movies, you gotta pick your son up from school and remind you you gotta, you know, call parent teacher night conference virtually. So this. Yeah, I guess that'll be the next thing. Now what we have to see is, is will this have some level of communication?
- [05:28]
B
I believe so.
- [05:29]
A
If it does, then that could potentially be a threat to the. And being that he comes from a background of dealing with iPhones, will open AI? Will open AI have a communication device which might be the next iteration of what a phone is.
- [05:44]
C
I don't even. Yeah, I think that's what, that's what I'm alluding to is that that next piece of consumer technology. It's. It. It will cut into that iPhone lead.
- [05:55]
B
Yeah. And. Yeah.
- [05:56]
C
And maybe it's not a phone anymore. Right. We don't.
- [05:58]
B
That shouldn't be.
- [06:00]
C
That first product is so important. The fact there's part of it. Right. And he probably will never admit to it. But them not coming back. Right. Them not seeing him as a valuable.
- [06:10]
B
Put a chip on the shoulder.
- [06:12]
C
There's a chip. And the fact that he did it with a company. Right. We talked about Apple AI. Has anybody used it? Has it been official?
- [06:19]
B
Underwhelming.
- [06:21]
C
Right. Look at what chat GBT is doing on a monthly basis, on a daily basis.
- [06:26]
B
Copilot is getting better. Copilot is better than Apple's intelligence.
- [06:31]
C
Yeah. I mean Microsoft, if Copilot doesn't get better, you still have 50 of this open AI company.
- [06:36]
B
Sure.
- [06:40]
C
It was. It was a tough week for apple outside of the 25 tariff. This HAP. This news happening. It's tough.
- [06:47]
B
And on top of that, it's going to put a lot of pressure on the Alexa series too in Amazon. And I'm gonna say it clearly, Tim Cook needs to be replaced. For all of you who gonna say, hey, you're going too far, stop talking. I hate the fact that I'll say these things about the Apple iPhone dominance waning and then somebody white said and y' all agree with it. I'm telling you now, Tim Cook needs to go. He can be chairman greatest operator in the history of Silicon Valley. I posed a question in stock club. I'll ask you guys, who's the better CEO Tim Cook or an AI version of Steve Jobs right now Hooked up to that Blackwell.
- [07:28]
C
No, he. They hooked up to Ruben.
- [07:31]
B
Like what, bro? You the. The Vision Pro mistake. Apple intelligence mistake. Acquisition of open AI mistake. You should have. That should have been number one priority when Sam wanted it for nothing. It's too much culture clash of Tim trying to be. And I get it, you don't want to be in someone's shadow, but you have to do what's best for the company. And I don't think that's currently being done.
- [07:59]
A
Well, okay, let's talk about Apple. But just. Just to play the other side of the fence here, Tim Cook's one of the greatest CEOs that we've ever seen.
- [08:09]
B
Greatest operators for sure.
- [08:10]
A
Apple's market cap soared from 348 billion in 2011 to 3 trillion.
- [08:18]
C
Yeah.
- [08:19]
A
Now that's. That's 14x he. 14x the market cap Product innovation in his reign, you got Apple watch, you got AirPods, Apple Music, Apple TV.
- [08:32]
B
The AirPods came from Steve Jobs acquisition of Beats.
- [08:37]
A
It's under his, it's under his reign. As far as the, the rise of AirPods, I, I, you know, he, he's.
- [08:48]
B
Greatest operator in the history of Silicon Valley.
- [08:50]
C
What you're saying is true. Both things can be true. I think both these. Yes. In terms of raising the market cap of a company. You're talking about the first 3 trillion dollar company. Yes. The important pieces inside that is that the guy who helped create those products, that helped you raise that market cap is no longer there. And since he's left, what has been the product that has succeeded?
- [09:11]
B
And my issue is the degradation of culture at Apple. Under his leadership, they reduced Steve to theater on campus, the campus that he built. They won't even put up a Steve flag on that campus. You guys can say that I'm wrong. Nacho, the audience at large, but I'm the one who put y' all an Apple, so maybe. And I've been. I had Apple too, at my grandma's house on Guthrie Street. Trust me, I'm right. But y' all can say I'm wrong. That's fine. What's a better company right now, Open AI, who is not publicly traded or Apple? All that ecosystem that y' all love. The audience, Nacho was created by Steve and Johnny.
- [09:53]
C
As of today, Ian, I'm still. I gotta take Apple because it's not public trade and they don't have a consumer product that's going to lead the future yet. So as of today, and that announcement could come. But today.
- [10:06]
A
So Open AI also also lives off the back of Apple.
- [10:10]
B
In part, yes.
- [10:12]
C
So in terms of the device that people are using on.
- [10:15]
B
Yeah. Until Johnny getting that lab like Iron.
- [10:18]
A
Man, I said last year, I think Opening I is going to be one of the greatest companies in human history and it's going to be a top five company for sure. Very short period of time. So Open AI is, I don't think any, I don't think anybody does is going against Open AI. It's just Apple is still a necessary company.
- [10:43]
C
Yes.
- [10:45]
B
It doesn't mean that leadership change is not needed.
- [10:49]
C
Innovation is needed.
- [10:52]
B
And it's hard to have innovation when you won't allow the culture the thing. Even though Steve was a hard driver as a leader, he allowed brilliant people to thrive. There's some brilliant people at Apple who I talk to that have ideas that can change a lot of this around. Oh, they're Being stifled that glass ceiling tough.
- [11:17]
A
So okay.
- [11:19]
B
Okay. No it doesn't change this to take two index. No, don't put in chat. Listen to me. Listen to me. They need new leadership. I don't want to say who I think should be seen put in chat.
- [11:32]
A
Your thoughts for sure on Apple.
- [11:34]
B
Yo. Ian Trippy.
- [11:37]
C
Nah. He said two tech man. Apple was one.
- [11:39]
B
You need at least 25000 shares and something like one company to tell me I'm wrong. And I've talked to a bunch of people at Apple who just afraid that he treat like like he should. You can. You could have bought open AI for little or nothing. Meanwhile you got $22 billion parking bonds or whatever. Now I get the. But the innovation part.
- [12:03]
C
We can't ignore that. But you can't run from that fact. The cash reserves are ridiculous.
- [12:11]
B
They don't use them correctly.
- [12:14]
C
But they could use them.
- [12:16]
B
But they have not.
- [12:18]
C
They haven't. And maybe that's part of the leadership prior. It's like we got to make sure we find the right company to acquire.
- [12:23]
B
I think he would be a better chairman. I really do.
- [12:26]
C
But having that treasure chest does.
- [12:29]
B
It does matter. It doesn't mean that they don't need better leadership.
- [12:32]
C
That's fair.
- [12:33]
A
Well speaking. Okay. Speaking of that.
- [12:38]
B
And they're real quick. There's some other AI companies that he could buy but you gotta kind of move fast before the valuations. Okay. Apple, if they deployed this right the capital right could have saved us from the China versus America war. They're choosing to rest on their laurels and not be on the offense. It's like playing four corners. It works until now you got to make a big shot. Now you can't make a big shot. You don't think Johnny. I've thought through the partnership with open AI knowing he can go directly to Microsoft and they have more devices in the landscape than Apple.
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C
We'll see operating cash flow of 110 billion.
- [13:21]
A
How will it. How will it. How will the tariffs impact Apple? We talked about you know this before but for full context Trump has threatened tariffs on Apple and he said that he's disappointed with Tim Cook and Apple decision to manufacturer in India which is a workaround from the China situation. But he wants it to be all done in America. And he's, he's spoke publicly about. He said he wrote them a letter. He's threatened to. To put tariffs on. On them as an individual company. So is the India workaround something that could potentially happen? Is globalization something that is still workable under The Trump administration or do they? Everybody just has to stay in America for the next three years.
- [14:18]
B
I don't know. Whatever that, that big that Trump wants, they just have to pay. You better call Don Jr. And get that Mastermind membership card. Go, go buy you 10 gold cards. And maybe, I don't know, I feel like he hasn't worked that relationship well enough because Trump won't say it, but he needs American companies to thrive for him and the MAGA regime to work over the next 12 years. They're not just worried about the next four him, Elon going back to Tesla. That is very talent to lose such a monumental piece and then this bill, which ends up being a disaster. I think his name is on it. So if this bill doesn't go well, so at least if he's making these campaign promises, he has to at least have one dominant company come back. Now, we talked about it before. How long is it going to take for you to build a plant that actually be able to create these iPhones? And then what would the cost be?
- [15:12]
C
Right.
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B
The idea is great. Execution is poorly planned. And that's my thing in terms of leadership across the board politically. And in terms of tech, I don't think people are planning for 10 years. I think they're looking maybe two or three years out. And it's a little bit short sighted.
- [15:27]
C
I think Tim Cook was doing that too. We talked about this too, almost, maybe two years ago when they were building the first Apple store in India and one of the people brought him a gift of the first Macintosh computer. And that was, that was pre, this presidential campaign that Trump has been on. So they've already looked at it from a standpoint of what is the next space we can now build infrastructure in. And instead of maybe having the product now, we're just spreading from a global standpoint where India is a market that, that we can now creep into and see some of those numbers that were starting to decrease in China start to increase in a new economy. But it's crazy, man. Like, like you said, the time it would take to get these factories up and running, it just wouldn't, it wouldn't even be done in his term. No, it had to be five years, almost five to seven years out. So Trump's saying, like, if you build them here, there's no tariff.
- [16:21]
B
Yeah, right.
- [16:21]
C
But if you build them in India, we're going to put a 25 tariff on it.
- [16:27]
B
Sincere. I, I've never heard this be done to one company. Like I said, put it in chat. If you know relationship with him.
- [16:35]
C
There was, there was the part where he talks about they had an understanding that he wouldn't be doing this but if you look at the history of Apple they were already constructed in India prior to all this.
- [16:43]
B
Prior to.
- [16:44]
C
So the news just feels kind of, it's like again I mean he did.
- [16:47]
B
Tell them I want you to build here and think Tim thought the adjustment India was okay. Yep.
- [16:54]
C
They said they're gonna, they, they agreed to the 500 billion dollar investment in AI infrastructure over the next five years which was the largest out of all of the. The max sevens or the quote unquote max sevens. They had the largest acclamation of funds to it and so on top of that they're still building the factories but now, I mean I think they said they lost over 900 million last last quarter which is not, I mean when you have 110 billion.
- [17:25]
B
But software from Sam. But yeah this is what happens when you have temperamental leadership. Like at least with a rigid leader or militant leader you at least know what cards you're dealing with. They're not adjusting on a three months like I couldn't like imagine Tim waking up and then hearing that news because I'm sure he found out on the news and not directly from Trump. It's like what the. I made this investment and now I'm still going to get attacks directly on my company knowing that I can't build that. Like, like you said it'll be six years before they are able to build in Chicago or Ohio to get a plant fully functional.
- [18:02]
C
Yeah, it'll be intact. It'll be in a state where the state tax is going to Texas is probably.
- [18:07]
B
I hope so.
- [18:09]
C
Yeah.
- [18:09]
B
Yeah.
- [18:09]
C
So what do you think leaving we're in 2,025 now. Are we leaving 2,025 with Apple on the chessboard as one of those two tech two index in the portfolio it always stay.
- [18:22]
B
I said it's a stock club privately. Apple will become by 2,030 a high value index fund year over year return wise.