Around The Horn - Week of 5/12
Three AI headlines that actually matter—beyond the usual hype cycles
Apple's Bold iPhone Obituary
Eddy Cue, Apple's Services chief, just did something unexpected at WSJ's Tech Live conference: he gave the iPhone ten years to live. Not "the iPhone will evolve" or "AI will enhance mobile." He said AI will replace iPhones by 2035.
That's not typical Apple messaging. They don't usually forecast the death of their most profitable product line. What makes this interesting is the specificity—Cue mentioned AI moving beyond "physical device limitations," which sounds like ambient computing where your assistant doesn't need a screen.
I noticed Apple's also developing custom AI chips for both smart glasses and servers, targeting late 2026 production according to Nikkei Asia. They're not just talking about a post-iPhone future—they're building it.
Why this matters for developers: We're looking at a fundamental shift in UI design. If Apple's timeline holds, the App Store model—apps launched from home screens—becomes obsolete within a decade. Start thinking about how your software works without a traditional interface.
Senate Tech Testimony: AI Leadership on Trial
Capitol Hill brought in the usual suspects this week—OpenAI, Microsoft, AMD, and CoreWeave—for hearings on "U.S. AI Leadership". The testimony was predictable, but the timing reveals something interesting.
While Congress grills executives about safety protocols, China keeps shipping. DeepSeek's latest model (which Microsoft banned internally) demonstrates that regulatory theater doesn't equal strategic advantage. Meanwhile, our tech giants are mired in restructuring, partnership disputes, and internal politics.
The real discussion wasn't about regulation—it was about compute infrastructure. Who controls the chips, who funds the data centers, and how do we maintain leadership while ensuring safety?
My take: These hearings feel reactive rather than proactive. By the time legislation catches up, we'll be debating different problems entirely. Watch the compute discussions, not the AI safety rhetoric. That's where actual decisions get made.
OpenAI's Microsoft Problem
OpenAI wants to cut Microsoft's revenue share from 25% to 10% by 2030, according to The Information. They're also restructuring as a Public Benefit Corporation to enable an IPO. Microsoft, predictably, isn't thrilled.
The mechanics get messy fast. Microsoft invested $13B, but that came with significant control. Now OpenAI needs independence to pursue an IPO, while Microsoft scrambles to build MAI-1, their internal AI model. Classic vendor lock-in, except the vendor is also locked in.
What this means for builders: This isn't just corporate drama. OpenAI's independence struggle directly affects Copilot features, Azure AI pricing, and API terms. If you're building on these platforms, have a backup plan.
The Connecting Thread
Notice the pattern? Apple's planning hardware obsolescence, politicians are playing catch-up with technology they don't understand, and the biggest AI partnership is fracturing under financial stress.
We're entering what I'd call the "awkward teenage years" of AI development. The initial rush is over. Now we're dealing with business models, regulation, and the messy realities of scaled deployment.
For developers: This uncertainty is opportunity in disguise. While giants fight over market share, agile solutions emerge in the gaps. Keep your dependencies minimal, your architecture flexible, and your options open.
The next decade won't be about picking the winning AI platform. It'll be about building systems that adapt as these platforms evolve, merge, or disappear entirely.
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