00:00:00
products really require vertical
00:00:01
integration. Ultimately, you have a
00:00:03
self-driving something that is
00:00:05
customuilt for knowing it's going to be
00:00:08
self-driving and it interacts
00:00:09
differently. The cost structure is
00:00:11
different. The controls are different.
00:00:12
The seating is different. You build a
00:00:14
product taking advantage of where in the
00:00:15
stack you have the most competitive
00:00:17
advantage, but then you leverage that
00:00:19
and it reinforces it's still why Apple
00:00:21
despite missing the AI wave still a
00:00:23
pretty good company from any empirical
00:00:25
standpoint. I mean like the performance
00:00:26
is absolutely miserable on the most
00:00:28
important technology running through the
00:00:30
last 70 years, but the company's still
00:00:32
alive and still worth trillions of
00:00:34
dollars because it's vertically
00:00:35
integrated. Open AI, they do have a good
00:00:37
product team and they need to stay ahead
00:00:39
on the product level because they can't
00:00:41
compete on the factory level. The way to
00:00:44
stay ahead on the product level is
00:00:45
shipping a device. They got to ship the
00:00:47
device. It's got to be good. It's got to
00:00:48
be right. It's got to be the right form
00:00:49
factor. It's got to do things for humans
00:00:51
that are unexpected. But then if they do
00:00:53
that, they're like Apple plus AI.
