Episode 5 Siri

Abstract
Summary Notes

Abstract

In the fifth episode of Acquired, the hosts discuss the evolution of Siri from a startup to its acquisition by Apple for around $200 million, highlighting its origins as a spin-out from SRI International funded by DARPA. Despite its initial promise, they critique Siri's performance and user engagement, suggesting it hasn't lived up to expectations. They explore the broader implications of voice interfaces and AI in computing, questioning whether Apple's approach to integrating Siri will lead to future success. The episode also touches on other acquisitions by Apple, like AuthenTec and PA Semi, which have been more clearly beneficial, and contrasts Siri's uncertain impact with these more successful integrations into Apple's ecosystem.

Summary Notes

Pilot as a Sponsor and Partner for Startups

  • Pilot is a company offering accounting, tax, and bookkeeping services to startups and growth companies.
  • Pilot has grown to become the largest startup-focused accounting firm in the U.S.
  • They are backed by notable investors including Sequoia, Index, Stripe, and Jeff Bezos.

"Our next sponsor for this episode is one of our favorite companies and longtime acquired partner, Pilot for startups and growth companies of all kinds. Pilot is the one team for all of your company's accounting, tax and bookkeeping needs and in fact now is the largest startup focused accounting firm in the US."

This quote introduces Pilot as a sponsor, emphasizing its role and growth as a significant accounting firm for startups in the U.S.

"They're a billion dollar plus company backed by Sequoia, index, Stripe and even Jeff Bezos himself."

This quote highlights the success and scale of Pilot, as well as the high-profile nature of its investors.

The Importance of Outsourcing Non-Core Functions

  • Jeff Bezos' AWS inspired axiom suggests startups should focus on their unique value proposition and outsource other functions.
  • Accounting is a critical function that requires professional handling but does not directly impact product quality or customer experience.
  • Outsourcing accounting allows companies to focus on core activities that enhance their product and customer satisfaction.

"Jeff's AWS inspired axiom that startups should focus on what makes their beer taste better. In other words, only spend your limited time and resources on what's actually going to move the needle for your product and customers, and outsource everything else that you do as a company that doesn't fit that bill."

This quote explains the philosophy of focusing on core business activities that add value to the product and customer experience, while outsourcing non-core functions like accounting.

Pilot's Comprehensive Services

  • Pilot provides a complete financial stack, including finance, accounting, tax, and CFO services.
  • They handle everything from general ledger to financial planning and investor reporting.
  • Pilot's services are designed to simplify and professionalize the financial operations of startups and growth companies.

"Pilot both sets up and operates your company's entire financial stack. So finance, accounting, tax, even CFO services like investor reporting from your general ledger all the way up to budgeting and financial sections of board decks."

This quote details the comprehensive range of financial services offered by Pilot, showcasing their capability to handle all aspects of a company's financial operations.

Pilot's Clientele and Offer

  • Pilot serves a wide range of clients, including well-known companies like OpenAI, Airtable, and Scale.
  • The company is equipped to support businesses through various stages of growth.
  • Acquired listeners are offered a promotional discount for Pilot's services.

"These are now companies like OpenAI, airtable and scale, as well as e commerce and other companies."

This quote exemplifies the diversity and caliber of Pilot's client base, indicating their experience with high-profile and varied businesses.

"All acquired listeners, if you use that link, you will get 20% off your first six months of service."

This quote provides listeners with a promotional offer, incentivizing them to try Pilot's services.

Siri and Apple's Acquisition

  • The episode is focused on the history and impact of Apple's acquisition of Siri.
  • Siri originated from SRI International, a spin-out from Stanford Research Institute, with a project funded by DARPA.
  • Siri was named for its qualities of victory and secrecy, reflecting its origins and ambitions.

"This episode is about Siri and Apple's acquisition."

This quote sets the stage for the discussion topic of the episode, indicating a focus on Siri and its acquisition by Apple.

"Siri, super interesting history, a spin out from SRI International, which itself is a fascinating organization many people are probably familiar with, based in Menlo park."

This quote provides background on Siri's origins, linking it to SRI International and its connection to Stanford Research Institute and DARPA-funded projects.

Siri's Development and Functionality

  • Siri was initially an independent app with a focus on voice commands and functions.
  • The app integrated with various services and APIs but had a less user-friendly interface compared to dedicated apps.
  • Apple's acquisition led to Siri being integrated exclusively into iOS devices, starting with the iPhone 4S.

"Siri relaunches as a baked in feature exclusive to the iPhone Four S."

This quote explains the transition of Siri from an independent app to an integrated feature within Apple's iOS ecosystem, beginning with the iPhone 4S.

"It was actually way harder to do anything on it versus just opening up the open table app yourself."

This quote reflects on the early user experience challenges faced by Siri as an app, suggesting that it was less efficient compared to using specific apps directly.

Venture Capital and Acquisition Details

  • Siri raised venture capital funding before being acquired by Apple.
  • Apple's acquisition of Siri was rumored to be around $200 million.
  • After the acquisition, Apple removed the standalone Siri app to avoid confusion and promote the iPhone 4S.

"Apple announces that they're acquiring the company for. They've never disclosed the price, but rumors are around $200 million."

This quote discusses the speculated acquisition price of Siri by Apple, which has not been officially disclosed.

"When the iPhone four s came out, they removed the Siri app from the App Store."

This quote explains Apple's strategy to drive adoption of the iPhone 4S by making Siri an exclusive feature and removing the standalone app from the App Store.

Scott Forrestal's Role and Legacy at Apple

  • Scott Forrestal was considered the "second Steve Jobs" at Apple.
  • He was known for his focus on product development.
  • Forrestal also took on projects like Apple Maps and Siri.
  • He was associated with skeuomorphic design in iOS.
  • Post-Apple, Forrestal produced the Tony award-winning Broadway musical "Fun Home."

"et project of Scott Forrestal, if you guys remember. He was sort of the second Steve Jobs of the company."

This quote highlights Scott Forrestal's significant role at Apple, likening his impact to that of Steve Jobs.

"And people talk about Johnny and the design aesthetic and kind of that focus on making beautiful things, but Scott was kind of the product person that was."

The quote emphasizes Forrestal's focus on product development, positioning him as a central figure in Apple's product strategy.

"Not to mention the guy infamous for skuomorphic design and iOS."

Forrestal is credited with the skeuomorphic design philosophy in iOS, which uses design elements that make icons resemble real-world objects.

"Scott's actually, I think he produced the Tony award winning Broadway musical this year."

This quote points out Forrestal's career shift post-Apple, highlighting his success in an entirely different industry with the production of "Fun Home."

The Acquisition of Siri by Apple

  • Apple's acquisition of Siri marked a significant shift in the company's direction.
  • Siri's acquisition led to the creation of an organization within Apple focused on AI and voice search technologies.
  • The acquisition was seen as foundational, though the original Siri team has since departed.
  • Apple has made numerous acquisitions to improve Siri, including Topsy, which is central to Siri's search capabilities.
  • The brand and function of Siri have persisted, but the underlying technology and team have evolved.

"Anyway, so the acquisition was kind of done by Scott Forrestal, and that kicked off a long chain of things happening in Apple acquisitions."

This quote indicates that Forrestal was instrumental in the Siri acquisition, which led to a series of subsequent acquisitions and developments at Apple.

"They hired a senior director. He's now the senior director of Siri, Alex Acero, who is ex Microsoft research."

The acquisition of Siri led to strategic hires to strengthen Apple's AI capabilities, as exemplified by the hiring of Alex Acero.

"They made a ton of acquisitions, including but not limited to Topsy, Novarius Technologies, AutoCaD, Q Spotsetter, vocal IQ pretty recently, and Perceptio."

This quote lists several acquisitions made by Apple to enhance Siri's capabilities, reflecting the company's commitment to developing the product.

"And these things, particularly topsy, are really kind of the academic rigor around the search and the methodologies that Siri uses today."

Topsy's acquisition is highlighted as a cornerstone for the technical and academic foundation of Siri's search functionality.

Siri's Impact and the Future of Voice AI

  • The acquisition of Siri was crucial for Apple's entry into voice AI, but the product has faced criticism.
  • Siri's performance has not lived up to its initial promise, with limitations in learning and functionality.
  • Despite challenges, voice interfaces are considered a significant part of future technology.
  • The story of Siri's acquisition and its impact on voice AI is still unfolding.

"We haven't really talked about Siri, the product feature, yet. And I think I would argue, as would a lot of people, it really hasn't lived up to its promise so far."

This quote reflects a critical view of Siri's performance and its failure to meet expectations since its introduction.

"Amazon came out with the Echo and Alexa this year. They are investing heavily in that, definitely."

The emergence of competitors like Amazon's Alexa highlights the growing importance of voice AI and sets a competitive landscape for Apple's Siri.

"I think the full story on this acquisition hasn't been written yet because there's going to be so much more to come."

This quote suggests that despite Siri's current shortcomings, its long-term impact and potential developments in voice AI remain significant areas to watch.

Activation of Voice Assistants

  • Discusses an accidental activation of Siri on an Apple Watch.
  • Highlights the importance of voice command technology in modern devices.
  • Emphasizes the need for seamless integration of voice assistants.

"It would be embarrassing as you're saying that I had my left hand twisted back and I accidentally activated Siri on my Apple Watch."

This quote illustrates the ease with which voice assistants can be inadvertently activated, pointing to the sensitivity and ubiquity of the technology.

"But it's so fundamentally, like, this needs to be a part, especially as you move into watches and televisions and connected speakers and being able to say, hey, Siri to your phone. A critical part of any."

The quote emphasizes the fundamental role that voice activation plays across various devices and the necessity for it to be a part of the user experience.

Limitations of Siri

  • Discusses the challenges Siri faces in understanding complex queries.
  • Reflects on the limitations of current voice technology and the potential for improvement.

"Hey, Siri, am I going to have time to go for a run tomorrow before work based on when my first meeting is and the fact that I want to walk to work not knowing what the weather will be right now?"

This quote demonstrates a complex task that Siri may not be able to handle effectively, showcasing the limitations of current voice assistant technology.

Introduction of Statsig Sponsorship

  • Announces Statsig as a new sponsor for the podcast.
  • Details the background of Statsig's CEO and the company's services.
  • Explains how Statsig supports data-driven product development and experimentation.

"Our sponsor for this episode is a brand new one for us, Statsig."

This quote introduces Statsig as the episode's sponsor, indicating a new partnership for the podcast.

"Statsig is a feature management and experimentation platform that helps product teams ship faster, automate a b testing, and see the impact every feature is having on the core business metrics."

The quote describes the services provided by Statsig and how they benefit product teams by enhancing the development process through data analysis and feature testing.

Categorization of Acquisitions

  • Debates the nature of Apple's acquisition of Siri.
  • Considers whether the acquisition was driven by technology, product, or other factors.
  • Discusses the evolution of Siri and its integration into Apple's ecosystem.

"So I think if you didn't do your research, it's technology. And you think you're acquiring this super academic. I guess it is partly technology, and we've just come a long way since Siri was."

This quote suggests that the acquisition of Siri by Apple could be seen primarily as a technology acquisition, acknowledging the advancements made since the acquisition.

"I think it's a technology acquisition because I don't view Siri as a product a, it sucks, but I don't think it is even really, especially going forward will be a product or a feature."

The speaker argues that Siri should be considered a technology acquisition rather than a product acquisition due to its fundamental integration into Apple's platform and its potential future role.

Future of Computing and Voice Interaction

  • Explores the future of voice interaction with technology.
  • Discusses the potential for screenless computing and natural interfaces.
  • Contemplates whether Apple will lead in the future of voice-based computing.

"I have no doubt that voice will be more central to the way that human beings compute in the future and interact with machines."

This quote predicts the increasing importance of voice interaction in computing and the shift away from reliance on screens.

"You can't bring old world thinking into the future. It's like the Henry Ford analogy of a faster horse."

The speaker emphasizes the need for innovative thinking in technology and the avoidance of outdated concepts when envisioning the future of computing.

Role of Screens in Technology

  • Discusses the ongoing relevance of screens in computing.
  • Considers the balance between visual and voice-based interactions.
  • Reflects on the suitability of different devices for various tasks.

"I don't think screens are going away. I think visual interaction with computers is not going to stop and is only going to continue to rise with computing."

This quote acknowledges that while voice interaction is on the rise, screens will continue to play a significant role in how we interact with technology.

"Screens don't need to be doing. And sure, screens will be doing things where there's a heavy, like when you're driving. Yeah, great point. Heavy display of information."

The speaker points out that screens are essential for tasks that require a significant display of information, suggesting that screens and voice interaction will coexist, each serving specific purposes.

Consumer Product Challenges

  • Building great consumer products is difficult due to the complexity of real-world use and edge cases.
  • Successful consumer products tend to be simple and clearly valuable, like Airbnb.
  • Siri is cited as an example of a product that is impressive in demos but falls short in actual use.
  • User acquisition data is not enough for consumer companies; retention data is crucial to understand long-term value.

"Consumer generally and specifically building great consumer products is really mean. I feel like Siri is a classic example that a lot of companies and products have a trap they fall into, which is I've got this awesome technology, we can do these amazing things, look at these really cool, shiny demos, and then you get it out in the real world with edge cases and delivering actual value on a consistent basis, solving people's real problems, doing that without friction."

The quote highlights the disparity between the impressive technology showcased in demos and the practical challenges of delivering consistent value in everyday use.

"This is one of the reason why as vcs, we really focus when we're looking at consumer companies on cohort and retention data. Because just like straight up acquisition data, user acquisition data isn't enough."

The quote emphasizes the importance of retention over mere acquisition in consumer products, highlighting the VC perspective on evaluating the long-term success of such companies.

Siri's Practical Usage

  • The speakers discuss their personal experiences with Siri, expressing disappointment in its performance.
  • The conversation reveals that Siri often does not understand or respond to commands as expected.
  • The speakers question the actual daily usage of Siri by the general public.

"Hey, Siri, look for the Aziz Ansari stand up on YouTube. Exact same search results. And I was like, oh, my God, it's not even plugged into."

This quote illustrates a specific example of Siri failing to understand and correctly execute a search command.

"I have to imagine if you could see the numbers at Apple of the people that are actually using Siri on an hourly or daily basis, it's probably very disappointing."

The quote suggests skepticism about the extent to which Siri is used by consumers, implying that the actual usage statistics might be underwhelming.

The Role of Voice Assistants and AI

  • The speakers discuss the potential future importance of voice and AI for Apple.
  • They speculate on the impact of Siri on iPhone sales and its significance in different markets, like China.
  • The acquisition of Siri by Apple is debated in terms of its success and strategic value.

"I think that if they didn't do this, Apple might not have moved in this direction and might have tried to follow after Google and Microsoft did it."

This quote suggests that Siri's acquisition pushed Apple in a certain strategic direction that it might not have taken otherwise.

"I'm going to give this one a c. Yeah. I think this acquisition was just, like, so classically Apple, or at least Apple of the last few years, spend south of $500 million to acquire a technology company that you then use to build into part of your platform and your whole product platform."

The quote evaluates the Siri acquisition from a strategic standpoint, suggesting that it fits Apple's pattern of integrating acquired technologies into its platform, but may not be as high-yielding as other acquisitions.

Crusoe's Clean Compute Cloud

  • Crusoe is presented as a clean compute cloud provider for AI workloads, partnering with Nvidia.
  • The company's data centers are powered by wasted, stranded, or clean energy, providing cost benefits and environmental advantages.
  • Crusoe's approach allows them to offer better performance per dollar than traditional cloud providers.

"Crusoe's cloud is purpose built for AI and run on wasted, stranded or clean energy, they can provide significantly better performance per dollar than traditional cloud providers."

This quote describes Crusoe's unique value proposition, leveraging non-traditional energy sources to power their AI cloud services at a competitive price.

"It's super cool that they can put their data centers out there in these remote locations where quote unquote energy happens as opposed to the other hyperscalers such as AWS and Google and Azure who need to build their data centers close to major traffic hubs where the Internet happens because they are doing everything in their clouds."

The quote contrasts Crusoe's remote data center locations, which capitalize on local energy sources, with traditional cloud providers that must build near major internet traffic hubs.

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