Barron’s published a most provocative article title “ Why Apple’s ‘Standard Oil’ Strategy Is Driving the Stock to All-Time Highs.“
As Anthropic, OpenAI, Google, Meta, and Microsoft duke it out in developing ever more powerful models, Apple has famously failed to deliver its own AI model, not even for Siri, which instead will be based on Google’s model.
But Barron’s argues that Apple may be in the driver’s seat:
“Apple is doing almost exactly what Rockefeller did when he was starting out in the mid-1800s. He knew oil drilling was risky, let wildcatters pay the high price, and went into the refining end.
“The iPhone maker is letting its Mag Seven peers pony up for AI research and development, and is ready to swoop in to grab the best models when the dust settles….
“Rockefeller won at oil because he controlled distribution. Right now, Apple leads in smartphones, is near the top in the personal computer market, and is determined to keep a hold on the devices—the iPhone and the Mac—where AI is used mostly by consumers.”
Meanwhile, Google just suffered a setback, delaying its Gemini 3.5 Pro model due to its failure to meet the hoped-for benchmarks:
Meta has already fallen behind the others, and Mark Zuckerberg recently admitted that they haven’t made as much AI progress as they expected.
And Sam Altman just admitted OpenAI hasn’t had a great year.
Did Tim Cook get the last laugh as he heads into retirement?