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Strategic AI Investments
Google's deal to acquire OpenAI's technology is a strategic move considering their financial capacity and existing relationship. It is observed that investing in AI at an early stage does not require perfection. OpenAI is leveraging its power to increase the cost of using GPT-4, indicating that future versions will likely be more expensive. Apple, being concerned about potential terms influenced by Microsoft's leverage over OpenAI, would not want to be subject to unfavorable conditions. The high cost of becoming the search default on the iPhone demonstrates the substantial financial investments required for strategic partnerships in the tech industry.