Ben Thompson's Stratechery update delves into how major tech companies are leveraging AI advancements, particularly focusing on stable diffusion and its implications for business models. Apple is enhancing its devices by optimizing stable diffusion models and updating chips, allowing developers to integrate image generation capabilities without needing extensive back-end infrastructure, potentially impacting AWS's GPU strategy. Meanwhile, Meta is heavily investing in AI to maintain user engagement and improve advertising tools, while Google faces challenges in balancing accurate search results with their ad-based revenue model amidst AI developments like Microsoft and ChatGPT. Microsoft, as OpenAI's exclusive cloud provider, is building AI infrastructure and plans to integrate ChatGPT into its productivity apps, enhancing its subscription model and revenue potential.