There is value found in spending time on the details regarding how Apple Intelligence was developed and functions. We will then go over my thoughts on the various Apple Intelligence features, ranking the features from most impressive to most concerning. We will then address AAPL price action.

Happy Thursday. It’s been a very busy week. As a reminder, we still have some WWDC news to go over early next week.

There’s a lot to cover today, so let’s jump right in.

How Apple Intelligence Was Developed

During Apple’s Platforms State of the Union presentation (available to view here), which is aimed at developers, the company went into detail regarding how Apple Intelligence was developed.

Apple Intelligence began with an on-device large language model that Apple built to achieve a certain power/size balance that allowed it run on device yet power the experiences Apple wanted to offer. Apple relied on fine-tuning to “teach” the model certain tasks such as text summarization, proofreading etc. Instead of producing different models with different expertise objectives, Apple relied on adapters which basically gave the foundation model specialization capabilities.

Apple then compressed the model (16-bit per parameter down to 4-bit) with on-device being the goal.

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