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Apple’s Weaponized Research: Inside its illusion of thinking paper

OpenAI and Google team up, Meta forms Superintelligence Lab, Google’s AI Mode shaking up traditional search and more!

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Sup y’all 👋

TBH, I think today’s episode was one of our hottest takes ever for #HotTakeTuesday. Maybe it’ll ruffle some feathers.

Even if you don’t care about Apple’s recent viral research paper that said AI couldn’t think, we THINK you should really watch/listen to today’s episode.

✌️

Jordan

(Let’s connect on LinkedIn. Tell me you’re from the newsletter!)

Outsmart The Future

Today in Everyday AI
8 minute read

🎙 Daily Podcast Episode: Apple's AI research paper stirred the pot with claims against large reasoning models. Is it genuine insight or corporate strategy? We dive into the hidden motives behind it, and how it impacts AI discussions. Give it a listen.

🕵️‍♂️ Fresh Finds: OpenAI hits $10B in revenue, NVIDIA’s Earth-2 GenAI model and Microsoft Edge gets new AI features. Read on for Fresh Finds.

🗞 Byte Sized Daily AI News: OpenAI and Google team up, OpenAI releases o3 Pro, Meta forms Superintelligence Lab and Google’s AI Mode shaking up traditional search For that and more, read on for Byte Sized News.

🧠 Learn & Leveraging AI: Is Apple’s research legit or just a ploy to cover up their lack of AI success? We explain what’s actually going on. Keep reading for that!

↩️ Don’t miss out: Did you miss our last newsletter? We talked about Apple’s AI updates, NVIDIA signing deals with U.K. firms, Gemini getting ‘scheduled actions’ feature and more. Check it here!

 Apple’s Weaponized Research: Inside its illusion of thinking paper 💡

Apple’s new AI paper says advanced AI thinking is an "illusion."

Is this a groundbreaking scientific discovery?

Or is it a cynical, weaponized piece of marketing dropped the weekend before WWDC to hide the fact that Apple is catastrophically behind in the AI race?

E

Also on the pod today:

Apple's AI Deception and Flawed Logic 🤒
Apple Research's Industry Strategy 🎯
Apple's $2 Trillion AI Market Loss 📉

It’ll be worth your 54 minutes:

Listen on our site:

Click to listen

Subscribe and listen on your favorite podcast platform

Listen on:

Here’s our favorite AI finds from across the web:

New AI Tool Spotlight – Instance turns your apps into ideas, Chronicle creates stunning presentations with AI and PhotoFuse turns your selfies into AI characters.

OpenAI – OpenAI is claiming to have hit $10B in annual revenue

OpenAI is currently down and having issues.

NVIDIA – NVIDIA’s Earth-2 GenAI foundation model can stimulate and predict global climate change.

Microsoft – Microsoft Edge is beta testing AI-powered history search and media controls.

AI Startups – Glean, a GenAI enterprise search startup, has raised $150M in a deal.

1. OpenAI Teams Up with Google Cloud to Boost AI Power ⚡

OpenAI has inked a major deal with Google Cloud, finalized in May, to tap into Google’s vast computing resources, signaling a strategic move to reduce its reliance on Microsoft’s Azure. This partnership comes amid soaring demand for compute capacity to train and run AI models like ChatGPT, which recently hit a $10 billion annualized revenue milestone.

The deal also reflects Google’s push to grow its cloud unit, leveraging its in-house tensor processing units (TPUs) previously reserved for internal use, while managing chip supply constraints and competing with Amazon and Microsoft.

2. Meta Recruits Scale AI’s Alexandr Wang for New ‘Superintelligence’ Lab 🧠

Meta is making a bold push in the AI race by launching a new research lab focused on “superintelligence,” with Scale AI founder Alexandr Wang joining the effort, according to The New York Times. CEO Mark Zuckerberg is reportedly frustrated with Meta’s current AI progress and is personally recruiting top talent, including poaching experts from OpenAI and Google, aiming to build a team of about 50.

This move signals Meta’s serious intent to accelerate toward AGI—artificial general intelligence—potentially outpacing rivals in developing AI that surpasses human capabilities in many tasks.

3. AI Chatbots Shake Up Online News Traffic 🤔

Online news publishers are facing a major shakeup as AI chatbots like Google's new AI Mode replace traditional search links, slashing organic search traffic by over 50% for outlets such as HuffPost and Business Insider, according to Similarweb data. Leaders from The Atlantic to The Washington Post acknowledge the urgent need to pivot away from Google-driven referrals toward direct reader engagement and new revenue models.

This shift marks a critical turning point in digital news, where the once-reliable flow of traffic from search engines is evaporating amid the rise of AI-powered answer engines.

4. Mistral AI Launches Magistral Reasoning Models 🚀

French AI startup Mistral has announced Magistral, its first line of reasoning AI models designed for multi-step logic tasks like math and physics, aiming to compete with offerings from OpenAI and Google. Magistral Small is openly available on Hugging Face, while the more powerful Magistral Medium is accessible via Mistral’s Le Chat platform and partners.

Although Magistral Medium currently trails behind competitors in benchmarks, Mistral highlights its faster response speed and broad language support as key differentiators.

5. Amazon Commits $20B to AI Data Centers in Pennsylvania 💰

Amazon is doubling down on AI and cloud computing with a massive $20 billion investment to build new data center campuses in Pennsylvania, creating 1,250 skilled jobs and boosting thousands more in construction and supply chains.

This move not only strengthens the U.S. position in AI innovation but also brings targeted workforce training programs in data center operations and fiber optics to local communities. Alongside job creation, Amazon is launching a $250,000 community fund to support STEM, digital skills, and sustainability initiatives across the region.

6. OpenAI Launches o3-pro Model for Pro Users 🚢

OpenAI has just rolled out its new o3-pro model to all ChatGPT Pro and API users, replacing the previous o1-pro. Early expert reviews say o3-pro outshines its predecessor in science, programming, writing, and data analysis, with higher marks for clarity and reliability.

The update also brings advanced tools like web browsing, file analysis, and personalized memory, aiming to supercharge everyday AI workflows.

🦾How You Can Leverage:

We built the exact same puzzle that Apple claims reasoning AI models can't solve.

In 30 seconds.

And the AI model solved it.

Without flaws.

 Apple's "research" paper went SO viral it showed up in a business newsletter that usually ignores AI completely.

That's when we knew something was seriously wrong.

So we did what any investigative reporter would do. Read the study twice manually, fed it to three separate AI models, then built the exact same Tower of Hanoi puzzle Apple claims is impossible for AI to solve.

Plot twist?

The AI model solved it PERFECTLY. In optimal moves. Using the same AI model Apple tested and said that it didn’t work.

Apple didn't just fail at AI research. They appear to have weaponized questionable science to cover the biggest business fumble in corporate history.

We're talking a potential $2 TRILLION that Apple left on the table because they couldn’t crack AI.

So instead, the tech juggernaut has resorted to throwing shade at AI’s development via “research papers.”

Those quotes? Yeah…. jump into today’s episode.

Let’s goooooooooo.

1 – Apple Kinda Rigged Their Own Tests 🤫

In Apple’s “research”, they banned AI models from using code.

Huhhhh?

You're testing reasoning capabilities but removing the most effective reasoning tool available. It's like testing race car performance but yanking out the engine first and saying NOW GO FAST CAR GOOOOOO!

Then calling every car ever made slow.

But here's what really caught our attention. Apple capped the AI models they tested (Claude and DeepSeek) at 64,000 tokens output when a 128,000 token version was available the exact same day they ran their tests via Claude. We checked the internet archives to verify this.

Why’s that matter?

One of the big metrics Apple relied on was logic-based puzzles like Tower of Hanoi.

A 13-disc Tower of Hanoi puzzle, though, requires approximately 65,000+ tokens to solve properly when you output every move as Apple required.

In other words, Apple knowingly tested models on questions that were actually/physically/legit impossible, then acted surprised when it faile?

Fishy, right?

It was through “failures” like these that lead Apple to label THE ENTIRE CLASS OF REASONING MODELS as "AI failures" when models couldn't break the laws of physics.

That's not reasoning collapse.

That's hitting an artificial ceiling that Apple intentionally built.

Try This

Next time you see research claiming AI "fails" at something, check if they artificially limited the AI's capabilities first.

Look for banned tools, capped resources, or weird constraints that don't match real-world usage. If you can't replicate their setup without those limitations, the failure might be by design, not by AI inability.

2 – The $2 Trillion Math that Explains Everything 🤑

2021: Apple dominated the world at $2.1 trillion market cap. Microsoft trailed at $1.6 trillion.

Half a trillion dollar lead.

Today: Microsoft sits at $3.5 trillion market cap. Apple remains stuck at $3 trillion.

If Apple had figured out AI and kept pace with Microsoft’s modest growth over the last four years, they'd be worth $5 trillion right now.

Instead, they've left approximately $2 TRILLION in market value on the table by completely botching artificial intelligence.

The numbers tell the whole story.

Reports from 2023 show Apple spent millions of dollars DAILY training their internal AI model codenamed Ajax. They claimed internally it was more powerful than ChatGPT.

When they finally released it?

So embarrassing they didn't mention it by name during their main keynote presentation.

A small language model that lives on device. That's it.

Apple remains the only major tech company that failed to produce competitive AI offerings. They're now facing multiple class action lawsuits for promising Apple Intelligence features they haven't delivered.

How’s this relate to the The Illusion of Thinking paper that Apple dropped?

This research paper dropped DAYS before their Worldwide Developer Conference where they essentially announced an AI gap year.

Coincidence?

We think not.

Knowing their stock would take a nosedive for failing to release anything noteworthy on the AI end, they instead weaponized a piece of corporate marketing masquerading as a research paper to say that AI kinda stinks.

Try This

When evaluating any company's strategic moves, calculate their opportunity cost using competitors as benchmarks. T

ake their current market cap, find the growth rate of their closest competitor over the same period, then apply that rate to see what they could have achieved.

The gap reveals exactly how much their strategic decisions cost them in real dollars.

3 – The Pattern of Poor Research that Apple Should Break 🙅

This isn't Apple's first time pulling this corporate maneuver, because they've released multiple papers downplaying AI capabilities while frantically scrambling to catch up behind the scenes.

Real breakthrough AI research typically involves multiple institutions working together like Stanford, MIT, OpenAI, Google, and Microsoft collaborating to provide cross-institutional validation like this one.

Apple's paper? ALL Apple researchers. Just them.

(Our hottest take: we don’t think any distinguished AI researcher outside of Cupertino woulda ever signed off on this flimsy thing.)

That's what marketing disguised as science looks like.

The research community isn't buying it either, with AI researchers openly criticizing the flawed methodology on social platforms. When you essentially tell every other researcher that their work is invalid due to "contaminated data," then use puzzles that are plastered all over the internet anyway, you're basically dismissing the entire scientific community.

Apple's desperate because everyone else is winning the AI race. Google's making breakthrough discoveries, OpenAI's models are revolutionizing industries, and Microsoft's integrating AI into everything.

Apple? Still struggling with basic voice recognition after spending billions.

Try this

Next time you see explosive research claims about AI limitations from a single company, dig into three specific areas.

  • Be wary if a study limits model capabilities without a clear reason—real research tests models at full strength.

  • Check if papers are released right before a company's product launches; that timing often isn't accidental.

  • If all authors are from one company and making big claims, it's likely marketing, not objective science.

Wanna dive even deeper?

Check this great Twitter thread from Andreas Kirsch, a research engineer who's worked at Google, DeepMind, Midjourney and others.

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