[pnwhyc]

You're looking at AI as if it would be their primary product.

They don't need to compete with Google or Apple on the front of AI as a polished product. Not now, anyways. All they need to do is make something that works. They can get away with building something that wouldn't even be beta-worthy for big tech companies to release. To Magic, AI could simply mean more efficient infrastructure, keeping human interaction in place of UX.

The more efficient they get, the more they can lower the price. The more they can lower the price, the more users they'll have. The more users, the more revenue, the more cash to spend on improvement.

AI doesn't have to roll out of MIT looking like Jarvis just to be useful.