Google still doesn't have an answer to Apple's AI-potential, says Wedbush's Dan Ives

CNBC Television
14 May 202404:21

TLDRWedbush's Dan Ives discusses the ongoing AI arms race and Google's position in the market. He notes that while Google is narrowing the gap with Microsoft and Open AI, it needs to demonstrate its ability to monetize AI, particularly in the context of search and cloud services. Ives highlights the importance of Google showing its unique value proposition to developers and consumers, especially in light of potential partnerships between Apple and Open AI, which could significantly impact Google's market share. He also mentions the significance of Google's Gemini project and the need for the company to recover from past setbacks. Ives suggests that if Apple's Siri were to be powered by ChatGPT, it could pose a serious challenge to Google's dominance in search. The conversation underscores the strategic importance of AI technology for tech giants and the evolving dynamics between them.


  • 📈 **AI Arms Race**: There's an ongoing competition in AI, with Google trying to catch up to Microsoft and Open AI.
  • 🔍 **Google's Challenge**: Google needs to demonstrate its strength in AI, particularly in monetizing AI through services like Gemini.
  • 📱 **The Future of iPhones**: The discussion suggests that the future of Apple lies in integrating AI into the iPhone, possibly with the iPhone 16.
  • 🤝 **Apple and Open AI Partnership**: There's a hint at a partnership between Apple and Open AI, which could significantly impact the AI landscape.
  • 💰 **Monetization Focus**: Google's strategy is heavily focused on how to monetize their AI advancements, especially in search and cloud services.
  • 📈 **Google's Recovery**: After some setbacks with Gemini, Google is looking to reassert its position as a leader in AI technology.
  • 🚀 **Showcasing Strengths**: Google is under pressure to showcase unique products and technologies that competitors do not have.
  • 🔊 **Voice Usage Impact**: There's a concern that increased voice usage, potentially powered by AI like ChatGPT, could disrupt traditional search habits.
  • 🤔 **Google's Answer to Siri**: Google is yet to present a clear answer to the potential shift towards AI-powered voice assistants like an enhanced Siri.
  • 📉 **Consumer Shift**: Google faces a significant challenge if consumer behavior shifts away from traditional search due to AI-driven voice interfaces.
  • ⚖️ **Historical Rivalry**: There's an ironic twist with Apple and Microsoft, traditional rivals, potentially joining forces in the face of new competition.

Q & A

  • What is the current state of the AI arms race as mentioned in the transcript?

    -The transcript suggests that there is an ongoing AI arms race, with Google narrowing the gap against Microsoft and Open AI. It emphasizes the importance of the event for developers and the competition in the AI field.

  • What does Google need to demonstrate in the AI space according to Dan Ives?

    -Google needs to showcase its capabilities from a Gemini perspective and in AI, to prove that they can monetize these technologies. They also need to show that they have unique products that others do not have.

  • What is the significance of the iPhone in the context of Apple's AI strategy?

    -The iPhone is considered the future of Apple's AI strategy. The expectation is that the iPhone 16, to be announced at WWDC next month, will significantly incorporate AI.

  • How does the transcript suggest Google should approach monetizing its AI technology?

    -Google should focus on search and how to monetize it, considering the next versions of their technology and the implications for advertisers, especially from a cloud perspective.

  • What is the potential impact of Siri being powered by ChatGPT on Google?

    -If Siri becomes powered by ChatGPT, it could lead to a default preference for using Siri over Google's search assistant, posing a significant challenge to Google.

  • What is the 'nightmare scenario' for Google as described in the transcript?

    -The nightmare scenario for Google is that Apple and Open AI form a partnership, leading to the launch of a product that could outcompete Google's offerings.

  • How does the transcript characterize Google's position in the enterprise market?

    -Google is suggested to have a better position in the enterprise market with its cloud tools, reliability, capability, and simple scale.

  • What is the importance of the event for Google in terms of developer relations?

    -The event is crucial for Google to demonstrate its strength and commitment to developers, showing that they have a product that is leading in the market.

  • What is the potential strategic partnership mentioned in the transcript?

    -The potential strategic partnership mentioned is between Apple and Open AI, which could significantly impact the future of AI in consumer devices like the iPhone.

  • What historical irony is highlighted in the discussion about Apple and Microsoft?

    -The irony highlighted is the potential for Apple and Microsoft, once fierce rivals, to bond or collaborate to compete against other rivals in the AI space.

  • What is the current challenge for Google in the consumer market according to the transcript?

    -The challenge for Google in the consumer market is to ensure that their AI technology is so good that consumers will not bypass Google in favor of voice-activated AI assistants like Siri.

  • What is the overarching theme of the discussion in the transcript?

    -The overarching theme is the competition and strategic positioning among tech giants like Google, Apple, and Microsoft in the rapidly evolving AI landscape.



🤖 AI Arms Race and Google's Position

The first paragraph discusses the ongoing competition in the field of artificial intelligence (AI), often referred to as an 'AI arms race.' It highlights Google's efforts to close the gap with major competitors like Microsoft and Open AI. The speaker emphasizes the significance of the event for developers and Google's need to demonstrate its ability to monetize AI, especially in light of potential partnerships between Apple and Open AI. There's also speculation about the future of the iPhone in relation to AI and the importance of Google showcasing its strength in search and cloud technologies to remain competitive.



💡AI Arms Race

The term 'AI Arms Race' refers to the competitive development and advancement of artificial intelligence technologies among major tech companies. In the context of the video, it highlights the ongoing competition between companies like Google, Microsoft, and Open AI to lead in AI innovation. The script mentions this in relation to Google's position and its need to show significant progress in AI to remain competitive.


Google is a leading technology company that provides a wide range of services and products, including search engines, online advertising technology, cloud computing, and AI. The script discusses Google's efforts in the AI space, its challenges, and how it is positioning itself against competitors like Apple and Microsoft in the development of AI technologies.


To 'monetize' refers to the process of converting potential opportunities into revenue. In the video, the concept is central as it discusses how Google and other companies aim to generate income from their AI technologies. The monetization strategy is particularly relevant when discussing Google's AI advancements and its search engine dominance.


Gemini, as mentioned in the transcript, likely refers to a project or product within Google that is significant to its AI strategy. The script suggests that Google needs to demonstrate the unique value of Gemini to developers and the market to distinguish itself from competitors.


The iPhone is Apple's flagship smartphone and is mentioned in the context of future AI integration. The discussion suggests that the iPhone 16, anticipated to be unveiled at WWDC next month, will be a pivotal device in showcasing Apple's AI capabilities, particularly if it incorporates advanced AI like Open AI's technology.

💡AI Device

An 'AI Device' is any piece of hardware that integrates artificial intelligence to perform tasks or enhance functionality. The script speculates about the future of AI devices, particularly focusing on how the iPhone might evolve to incorporate more sophisticated AI, thus becoming a central theme in the narrative of tech advancement.


In the context of the video, 'search' refers to the process of looking up information on the internet, typically using a search engine like Google. The script emphasizes Google's stronghold in the search market and how its AI advancements could further solidify this position, despite competition from other tech giants.


The term 'cloud' in the script refers to cloud computing, which is the delivery of various services through the internet. It is a significant aspect of Google's business model and is tied to its AI strategy. The discussion points out the importance of cloud-based AI services for monetization and the competitive landscape.


Advertisers are entities that promote their products or services, often through paid channels. In the video, the mention of advertisers is linked to the monetization of AI technologies, particularly in the context of cloud services and how AI can influence advertising strategies and revenue streams.


Siri is Apple's voice-activated virtual assistant that uses AI to perform various tasks. The script suggests a potential shift in Siri's underlying technology to be powered by Open AI's systems like ChatGPT, which could significantly impact user experience and Google's competitive position.


ChatGPT is a type of AI technology that is likely to be mentioned in the context of advanced natural language processing capabilities. The script implies that if Siri were to integrate ChatGPT, it could become a preferred choice for users, posing a challenge to Google's AI services.

💡Android Phone

An 'Android Phone' refers to any smartphone that operates on the Android operating system, which is Google's primary mobile platform. The script briefly touches on the potential future of Android phones in the context of AI, suggesting that they will also be a key battleground for showcasing AI advancements.


Wedbush's Dan Ives discusses the ongoing AI arms race between tech giants.

Google is narrowing the gap against Microsoft and Open AI, but needs to monetize AI effectively.

A significant event for developers as the tech industry's 'Game of Thrones' unfolds.

The future of the iPhone is expected to be heavily influenced by AI advancements.

Speculation about the iPhone 16 and its potential integration with AI at WWDC next month.

Google's challenge is to demonstrate its AI capabilities not just in search but also in the cloud.

NVIDIA is considered the 'Godfather of AI' in the current tech landscape.

Google's AI strategy is crucial for maintaining its position in the market against competitors like Apple.

The monetization of Gemini and its next versions is a key focus for Google.

Google needs to convince advertisers of the value of AI from a cloud perspective.

Dan Ives emphasizes the importance of Google demonstrating its unique product offerings.

Google has faced challenges and criticism following some of Gemini's launches.

The event is pivotal for Google to showcase its leadership in AI technology.

Google's dominance in search continues, with others 'paying rent' in the space.

A potential partnership between Apple and Open AI could pose a significant threat to Google.

If Siri were to be powered by ChatGPT, it could become the default AI assistant.

Google is yet to present a clear answer to Apple's AI advancements and potential integrations.

Google's enterprise position with cloud tools is strong, but consumer adoption of AI remains a challenge.

The future of Google's AI lies in its ability to convince consumers of its superiority in technology.

The irony of Apple and Microsoft potentially bonding to compete against other rivals.

The importance of Google's event in demonstrating its direction in AI technology.