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Apple's Services division generates $26.3 billion in Q1, a 14% year-over-year increase.
Apple CEO Tim Cook discusses DeepSeek AI models, OpenAI partnership, and iPhone sales Let’s dive deeper…
In today's ContentBuffer update:
Apple Services reach record highs in Q1
Apple's AI ambitions and challenges
Google's new AI model outperforms existing models
Intel Abandons Falcon Shores AI Chip
Apple Q1 earnings: iPhone sales dip, but revenue rises
Musk: Many Tesla cars need hardware upgrade for full self-driving
5 new AI tools & 5 new AI jobs
More tech news
Latest Development
Digital Commerce
Image source: TechCrunch
Summary: Apple's Services division saw a record-high revenue of $26.3 billion in Q1, with a 14% year-over-year increase. The division generated nearly $100 billion in revenue over the past year, according to CEO Tim Cook. Apple also reported having more than 1 billion subscriptions across its services.
Key Points:
Apple's Services business saw an all-time high revenue of $26.3 billion in Q1.
The company reported a 14% year-over-year increase in Services revenue.
Apple has over 1 billion subscriptions across its services, including through third-party apps in the App Store.
Why it matters: Apple's strong Services division performance is significant as it highlights the company's ability to diversify its revenue streams and reduce dependence on iPhone sales.
Artificial Intelligence
Image source: TechCrunch
Summary: Apple CEO Tim Cook discussed DeepSeek AI models, OpenAI partnership, and iPhone sales during an earnings call. He emphasized innovation driving efficiency, but also highlighted challenges faced by Apple Intelligence, including false alerts in AI summaries.
Key Points:
Apple leverages a hybrid model for its AI, running simple tasks locally and more complicated tasks in the cloud through partnerships with AI model providers
The company currently has only one AI partnership, with OpenAI, which allows ChatGPT to answer complex questions from iPhone users in a private cloud
DeepSeek's AI models were trained using significantly more GPUs and computation costs than the company claims, according to tech analysts
Why it matters: The discussion highlights Apple's AI ambitions and challenges, as well as its approach to integrating AI models into its products and services.
Artificial Intelligence
Image source: TechCrunch
Summary: Google releases Gemini 2.0 Pro Experimental AI model, claims better factuality and stronger performance for coding and math-related tasks; available to Gemini Advanced users starting Thursday
Key Points:
Gemini 2.0 Pro Experimental is the leading model in Google's Gemini AI family, providing 'better factuality' and 'stronger performance' for coding and mathematics-related tasks.
The new model is available to Gemini Advanced users, which is a part of the company's Google One AI Premium paid plan or through Google's Gemini for Google Workspace add-ons.
Gemini 2.0 Pro Experimental is in 'early preview', and can have 'unexpected behaviors' – may make mistakes; not compatible with some app features
Google notes that Gemini 2.0 Pro Experimental doesn't have access to real-time information, unlike other Gemini models available in the Gemini app
Why it matters: The release of Gemini 2.0 Pro Experimental marks a significant milestone in Google's AI development and highlights the company's commitment to rapid innovation and iteration.
Cpu Gpu
Image source: TechCrunch
Summary: Intel is abandoning its Falcon Shores AI chip due to disappointing product launches and historic losses. The company will instead focus on Jaguar Shores, which aims to develop a system-level solution for the AI data center market. This move comes as competitors like AMD and Nvidia gain ground in the AI chip space.
Key Points:
Intel is killing Falcon Shores, its next-generation GPU for high-performance computing and AI workloads.
The company will leverage Falcon Shores as an internal test chip without bringing it to market.
Intel's co-CEO Michelle Johnston Holthaus said that the focus will be on Jaguar Shores, a system-level solution at rack scale to address the AI data center market more broadly.
Why it matters: This move is significant because it shows Intel's willingness to correct course and refocus its efforts in the competitive AI chip space.
Tech Business
Image source: TechCrunch
Summary: Apple's Q1 earnings report showed a mix of positive and negative trends. The company's revenue rose by 4%, but iPhone sales declined by 11.1% in China. CEO Tim Cook attributed the decline to Apple Intelligence, which is not currently available in China. Mac and iPad revenue grew by 15%, while services revenue saw a 14% increase.
Key Points:
Apple's Q1 revenue rose by 4% to $124.3 billion
iPhone sales declined by 11.1% in China, the largest drop since Q1 2024
CEO Tim Cook attributed the decline to Apple Intelligence, which is not currently available in China
Why it matters: Apple's mixed earnings report highlights the challenges the company faces in the competitive smartphone market and the importance of innovative features like Apple Intelligence.
Autonomous_driving
Image source: TechCrunch
Summary: Elon Musk has acknowledged that many Tesla cars do not have the necessary hardware for full self-driving capabilities. This admission follows years of promises from Tesla about its ability to deliver autonomous vehicles. The company is working on a software update to enable self-driving features in newer vehicles.
Key Points:
Many Tesla vehicles with Hardware 3 computers will need an upgrade to support unsupervised self-driving software
Tesla's previous claims about the capabilities of its vehicles have been disputed and criticized
The company is working on a software update to enable self-driving features in newer vehicles
Why it matters: This admission highlights the challenges faced by Tesla in developing autonomous driving technology and underscores the need for transparency from companies making bold claims about their products.
New Tools & Job
Docubro 💻 - AI-powered documentation tool for improved knowledge sharing
Lily 🤖 - Free AI therapist providing instant, confidential support and guidance
Typedream 📄 - AI-powered website builder for creating professional-looking websites
AirBrush 💫 - AI-generated headshot creator for professional photography and branding
TwGPT 🐦 - AI-powered Twitter reply assistant for maximizing engagement and saving time
OnTheGoSystems - Ruby on Rails Developer
RAPIDCODE LLC - Backend Developer - Browser Automations
Proton.ai - Senior Backend Engineer
OnTheGoSystems - Senior PHP / AWS Developer for System Optimization
BotGuard - Lead Software Engineer - Networking and Web Security
QUICK HITS
💸 OpenAI in talks to secure up to $40 billion in a funding round, valuing the startup at $340 billion.
🔬 Nucleus Genomics, a company that offers genetic testing and analysis, has announced $14 million in series A funding.
💸 Cushion, a startup that aimed to negotiate bank service fees, has shut down citing lack of scale.
🎶 Notes, a new fintech platform, provides financial literacy, music business education, and loan access to independent urban musicians.
🚀 Google is offering a voluntary exit program to its Pixel, Android, and Chrome teams.
THAT’S A WRAP
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