OpenAI just spent $6.4 billion acquiring io, Jony Ive's nascent hardware venture. As someone who grew up idolizing the Jobs-Ive partnership—Mac Addict subscription, Marathon on shareware, one of everything they ever made—I understand the allure. But this move reveals OpenAI's existential crisis: they're playing a game they've already lost.

The Distribution Kings Have Already Won

Let's be clear about the consumer AI endgame: Google and Apple will dominate, with Microsoft trailing on desktop and maybe, eventually, phones. They have what OpenAI desperately lacks: hardware expertise, distribution channels, and capital scale that dwarfs even OpenAI's eye-watering funding rounds.

Hardware isn't just another moat—it's a moat where your competitors have decades of experience and you're learning

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