Bloomberg Businessweek Weekend: Apple's AI Crisis, Rare Earths, and Duolingo's Growth

Apple's AI Challenges

• 🍎 Apple is facing a significant crisis in its AI development, with internal teams admitting they are falling short of competitors like OpenAI and Google.
• 💡 Siri, once revolutionary, is now considered legacy technology, failing to keep pace with advancements in large language models.
• 🚀 The company reportedly only began focusing on generative AI after an executive used ChatGPT for a personal project, leading to a rushed iOS 18 AI release.
• ⚠️ Apple's AI struggles have already caused delays in smart home initiatives and may impact future hardware like AirPods and smart glasses.

Rare Earth Minerals and US Supply Chain

• 🇺🇸 MP Materials is working to restore the full rare earth supply chain to the United States, aiming to eliminate single points of failure.
• 🏭 The company mines, refines, and manufactures rare earth magnets in the US, with a foundational contract with General Motors.
• 🤝 MP Materials has signed an MOU with Saudi Arabian mining company Ma'aden to explore a vertically integrated rare earth magnetics business in Saudi Arabia.
• 🛡️ The US government recognizes the strategic importance of rare earth minerals for national security, particularly for AI-driven warfare technologies.
• 💰 Solving the rare earth supply chain challenge requires single-digit billions in investment, a relatively small amount compared to the trillions in enterprise value at stake.

Duolingo's Growth and AI Strategy

• 📈 Duolingo is experiencing substantial growth, with a 40% year-over-year increase in paid subscribers to 10.3 million in Q1 2025.
• 🗣️ The language learning app plans to significantly expand its course offerings beyond languages using artificial intelligence.
• 🌍 Duolingo's growth is primarily organic, driven by word-of-mouth and a strong social-first marketing strategy, with a focus on global markets like China.
• 🎓 Studies show Duolingo's efficacy is on par with university language learning, and new features like 'Video Call with Lily' enhance conversational practice.
• 🤖 Generative AI has enabled Duolingo to create over 100 new courses in less than a year, a pace significantly faster than before.

Elon Musk on Tesla, Politics, and AI

• 🚗 Elon Musk asserts that Tesla's sales issues in Europe are temporary and part of a broader industry trend, with strong performance elsewhere.
• ⚖️ Musk is committed to remaining Tesla's CEO for the next five years, emphasizing the need for sufficient voting control independent of his pay package.
• 🏛️ He is reducing his political spending, stating he has done enough and currently sees no reason for future contributions, while criticizing the Wall Street Journal.
• 🚀 SpaceX leads in space launch, dominating the market with its satellite constellation, and Musk does not currently anticipate entering the weapons business.
• 💡 Musk believes AI is a core technology for the future, comparing its significance to the touchscreen, and is pushing for a few referees (regulators) in the AI space, not an overregulated environment.
• 🤝 He dismisses conflict of interest concerns regarding his advisory role in government, citing transparency and the lack of formal power.
• 🚫 Musk criticizes South Africa's