Top stories today:

1. Apple to produce 25% of iPhones in India in 2 or 3 years
2. Grok AI launches as part of X
3. Google Bard, powered by Gemini Pro, improves fact-checking
4. TSMC's sales -7.5% in Nov
5. Stability AI releases open-source, non-commercial 3B model

0. Data and calendar

1. Apple to produce 25% of iPhones in India in 2 or 3 years, from 7% today

• 50M iPhones/year in India is the goal.

• The remaining iPhones are produced in China, except ~1% made in Brazil.

2. Grok AI launches as part of X, with Fun Mode as default

• Rolling out to Premium+ ($16/mo) members.

Our view: its quality is below GPT 3.5 and real-time access to X data is not that special

• We don't expect real-time X access to lead to a sustainable moat, since Google and OpenAI/Microsoft/Bing have crawlers reading the entire web, including news websites that provide real-time content.

3. Google Bard, powered by Gemini Pro, appears to improve fact-checking, similarly to ChatGPT 4

Bard was getting questions as simple as “Who won the last Oscars?” wrong, but now it appears to increase the frequency of fact-checking claims with Google Search:

Both Bard and ChatGPT still have serious problems with non-English languages and numbers

• We also learned that Gemini's “real-time” demo video was not really real-time.

5. TSMC's sales -7.5% in Nov., even as market share expanded to 58% in Q3