Comment by IgorPartola

This is the key. The real issue is that you don’t need superhuman intelligence in a phone AI assistant. You don’t need it most of the time in fact. Current SOTA models do a decent job of approximating college grad level human intelligence let’s say 85% of the time which is helpful and cool but clearly could be better. But the pace at which the models are getting smart is accelerating AND they are getting more energy efficient and memory efficient. So if something like DeepSeek is roughly 2 years behind SOTA models from Google and others who have SOTA models then in 2030 you can expect 2028 level performance out open models. There will come a time when a model capable of college grad level intelligence 99.999% of the time will be able to run on a $300 device. If you are Apple you do not need to lead the charge on a SOTA model, you can just wait until one is available for much cheaper. Your product is the devices and services consumers buy. If you are OpenAI you have no other products. You must become THE AI to have in an industry that will in the next few years become dominated by open models that are good enough or to close up shop or come up with another product that has more of a moat.