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Dueling Headlines Regarding Apple’s $500 billion Spending Commitment

Apple Newsroom:

Apple will spend more than $500 billion in the U.S. over the next four years

Apple today announced its largest-ever spend commitment, with plans to spend and invest more than $500 billion in the U.S. over the next four years. This new pledge builds on Apple’s long history of investing in American innovation and advanced high-skilled manufacturing, and will support a wide range of initiatives that focus on artificial intelligence, silicon engineering, and skills development for students and workers across the country.

My immediate thought upon seeing Apple’s headline: How much of this is actually new, rather than a repackaging of existing plans? 

Dan Gallagher for The Wall Street Journal (News+):

Apple’s $500 Billion U.S. Investment Is Mostly Already in the Books

Unclear, though, is how much of the planned spending is actually new. Apple has spent about $1.1 trillion over the past four fiscal years on total operating expenses and capital expenditures—and Wall Street expects nearly $1.3 trillion in total spending over the next four years, according to consensus estimates by Visible Alpha. While Apple doesn’t break out its expenses per geography, about 43% of its revenue comes from the Americas region, which it defines as North and South America. Assuming the U.S. constitutes the large bulk of that number, and if spending is about in line with revenue, then a rough figure of 40% of projected global spending through the 2028 fiscal year equates to about $505 billion.

In short, Apple’s announced figure is in line with what one might expect the company to be spending anyway, given its financials. 

I don’t know that Apple announced this only for the benefit of Trump, but Trump, of course, claimed credit:

There is also domestic politics to consider—no small matter for a U.S. consumer-electronics company that still builds the bulk of its products overseas. Indeed the announcement seems to have already paid off: “Thank you Tim Cook and Apple!!!” President Trump exclaimed on his Truth Social platform Monday morning. 

The full post reads (in all caps, naturally, complete with a typo and three exclamation marks):

APPLE HAS JUST ANNOUNCED A RECORD 500 BILLION DOLLAR INVESTMENT IN THE UNITED STATES OF AMERICA. THE REASON, FAITH IN WHAT WE ARE DOING, WITHOUT WHICH, THEY WOULD’NT BE INVESTING TEN CENTS. THANK YOU TIM COOK AND APPLE!!!

Also on Truth Social, Trump released a graphic touting Apple’s $500 Billion commitment as part of “Investments in the U.S. Under President Trump”.

To quote myself on Mastodon in early February: 

Everyone: We’re Doing The Thing.

Trump: I will SEEK VENGENCE upon anyone not Doing The Thing!

Everyone: After speaking with Trump, we’ve agreed to Do The Thing.

Trump: Thanks to me and me alone, everyone is now Doing The Thing. You’re welcome.

Everyone: 😶

There’s no reason to believe Apple’s announcement today had anything to do with Trump or that it would have been any different under another administration—except that this administration is deeply, corruptly transactional and rewards behavior that demonstrates fealty.

Back to Apple’s announcement:

As part of its new U.S. investments, Apple will work with manufacturing partners to begin production of servers in Houston later this year. A 250,000-square-foot server manufacturing facility, slated to open in 2026, will create thousands of jobs.

Previously manufactured outside the U.S., the servers that will soon be assembled in Houston play a key role in powering Apple Intelligence, and are the foundation of Private Cloud Compute, which combines powerful AI processing with the most advanced security architecture ever deployed at scale for AI cloud computing. The servers bring together years of R&D by Apple engineers, and deliver the industry-leading security and performance of Apple silicon to the data center.

It’s a tantalizing tidbit that the servers being built in this new facility are for Private Cloud Compute, hardware Apple doesn’t even sell. Obviously very important to Apple’s AI plans, but I’m surprised they’re important (unique?) enough to require a dedicated facility. I’m very curious to see what these servers might look like. (Honestly, a rack-mountable M4 Max relaunch of the XserveApple Server?—would be dope.)

One final thought, on Apple’s hiring plans:

In the next four years, Apple plans to hire around 20,000 people, of which the vast majority will be focused on R&D, silicon engineering, software development, and AI and machine learning. The expanded commitment includes significant investment in Apple’s R&D hubs across the country. This includes growing teams across the U.S. focused on areas including custom silicon, hardware engineering, software development, artificial intelligence, and machine learning.

This is deftly worded. It specifies how many people it plans to hire, but doesn’t state if it’s additional or replacement headcount. If 20,000 people leave, and 20,000 people are hired to replace them, will Apple claim success on its hiring plan? It does meet the letter, if not the spirit, of the statement. Likewise, it plans on “growing” specific teams, but says nothing about “shrinking” others to balance things out.

Quite the facility with language, Apple has.

The Embarrassing State of Siri

Paul Kafasis engages in some excellent, self-inflicted nerd-snipping on One Foot Tsunami:

I asked my iPhone who won Super Bowls 1 through 60 (that’s “I” through “LX” in Super Bowl styling) and captured a screenshot of each result.

The results are utterly appalling:

So, how did Siri do? With the absolute most charitable interpretation, Siri correctly provided the winner of just 20 of the 58 Super Bowls that have been played. That’s an absolutely abysmal 34% completion percentage. If Siri were a quarterback, it would be drummed out of the NFL.

Some of the results are especially awful. For example, to the question “Who won Super Bowl XXIII?”, Siri responds with the number of times Bill Belichick has won or appeared in the Super Bowl—completely irrelevant.

John Gruber at Daring Fireball wrote a brutally (but fairly) titled follow-up, Siri Is Super Dumb and Getting Dumber, sharing the appalling results to his own query, “Who won the 2004 North Dakota high school boys’ state basketball championship?”

New Siri — powered by Apple Intelligence™ with ChatGPT integration enabled — gets the answer completely but plausibly wrong, which is the worst way to get it wrong. It’s also inconsistently wrong — I tried the same question four times, and got a different answer, all of them wrong, each time. It’s a complete failure.

We’ve all had the Siri experience of getting a clearly wrong or patently useless answer to our query. It’s gotten to the point where I merely roll my eyes and move on—I rarely even screenshot mistakes anymore.

But I do feel sorry for the Siri team. I have some good friends who work there, and I had occasion to work with the team on Siri responses a few years back. I know they cringe every time these failures hit the blogs. They know more than anyone just how much Siri needs to improve.

The latest scuttlebutt (from Mark Gurman at Bloomberg) is that longtime Apple exec Kim Vorrath is moving to Apple Intelligence in an effort to whip it into shape. I’ve watched Vorrath and her Program Office teams operate from the inside for many years. The biggest impact she and her team had across engineering was instilling discipline: every feature or bug fix had to be approved; tied to a specific release; and built, tested, and submitted on time. It was (is!) a time-intensive process—and engineering often complained about it, sometimes vocally—but the end result was a more defined, less kitchen-sink release each year. To a significant extent, her team is the reason why a feature may get announced at WWDC but not get released until the following spring. She provided engineering risk management.

I hope the Vorrath and the Siri team can make this work. I need them to make this work. The future promised by Apple Intelligence is too compelling for it to fail.

BBC Unhappy with Apple for Inaccurate AI Summaries

Graham Fraser, writing about the BBC, on BBC:

The BBC has complained to Apple after the tech giant's new iPhone feature generated a false headline about a high-profile murder in the United States.

Apple Intelligence, launched in the UK earlier this week, uses artificial intelligence (AI) to summarize and group together notifications.

Apple Intelligence is new to the U.K, but those of us in the U.S. have been ridiculing it for a month now. As John McClane said, “Welcome to the party, pal!

This week, the AI-powered summary falsely made it appear BBC News had published an article claiming Luigi Mangione, the man arrested following the murder of healthcare insurance CEO Brian Thompson in New York, had shot himself. He has not.

Headlines are an editorial decision, and represent the voice of the publication. A poor summary can be embarrassing. A misleading one—as this was—can sully the publication.

"BBC News is the most trusted news media in the world," the BBC spokesperson added.

"It is essential to us that our audiences can trust any information or journalism published in our name and that includes notifications."

Apple can’t afford this bad press if Apple Intelligence is going to be taken seriously and drive hardware sales.

If Apple can’t address this quickly, they may have another egg freckles situation on their hands.[1]


  1. To summarize: The handwriting recognition on the Apple Newton would fail, often in spectacular ways. Garry Trudeau “mocked the Newton in a weeklong arc of his comic strip Doonesbury, portraying it as a costly toy that served the same function as a cheap notepad, and using its accuracy problems to humorous effect. In one panel, Michael Doonesbury's Newton misreads the words "Catching on?" as "Egg Freckles", a phrase that became widely repeated as symbolic of the Newton's problems.” ↩︎