Apple’s market value increased by $71 billion with the news of its secret development of ‘Apple GPT’ to compete with OpenAI.

Apple's market value increased by $71 billion with the news of its secret development of 'Apple GPT' to compete with OpenAI.

Apple’s Quiet Development of Generative AI Tools: A Game-Changer in the Making

Apple AI

Big Tech giants have been heavily investing in the field of artificial intelligence, with OpenAI’s ChatGPT and Google’s chatbot, Bard, leading the charge. Companies like Microsoft, Nvidia, Amazon, and even Elon Musk’s xAI have joined the race. But there has been a noticeable absence in this AI frenzy – Apple. While other tech firms publicly embrace AI, Apple has referred to its efforts as “machine learning,” leaving us wondering if the world’s most valuable tech firm is falling behind.

According to a recent report from Bloomberg, Apple has secretly been working on its own generative AI tools. Internally known as “Ajax,” Apple’s framework allows the company to create large language models, similar to ChatGPT and Bard. In addition to this, Apple has also developed its own chatbot, unofficially referred to as “Apple GPT.” This revelation sent Apple’s stock soaring by 2.3%, reaching a record high of $198.23.

However, Bloomberg’s sources revealed that Apple is yet to finalize its plan for releasing its generative AI offering to consumers. Despite this, the push for AI has become a central effort at Apple, with multiple teams participating in its development. Apple representatives declined to comment on the report.

It’s important to note that Apple has been leveraging AI technology for years to enhance its devices. The integration of Siri, the world’s first AI-powered virtual assistant, in the iPhone 4S in 2011 was groundbreaking. More recently, Apple incorporated “machine learning” into its $3,500 Vision Pro headset. But generative AI takes things a step further, allowing machines to produce content or responses that are indistinguishable from human-generated ones. This capability grants AI systems the ability to brainstorm, make personalized recommendations, create music, or even pass an MBA final.

Apple’s interest in generative AI is evident from the multitude of job openings related explicitly to the technology on their website. Ulrik Stig Hansen, president and co-founder of generative AI firm Encord, believes that Apple’s entry into the AI revolution could significantly impact the industry. With its massive distribution advantage and the potential to bundle generative AI with iCloud services used by millions, Apple could be a real game-changer.

However, Hansen reassures existing players in the generative AI space that there is no immediate threat. He explains that these advanced AI models will be add-ons to products people are already using and paying for, making the real winner of this race the consumer. Allan Clarke, an investment manager at Aegon Asset Management, agrees that Apple’s move into generative AI aligns perfectly with consumer expectations. Apple’s strong brand, coupled with their seamless hardware and software integration, makes their devices the ideal platform for AI interactions.

Despite its potential to transform Apple’s products, the company is taking a cautious approach to AI development. Apple CEO Tim Cook has emphasized the need for thoughtful and deliberative integration of AI into their products. While acknowledging the huge opportunities and interesting potential of AI, Cook highlights the importance of addressing the numerous issues that need to be sorted out.

As Apple continues its secretive development of generative AI tools, the industry eagerly awaits the impact it will have on the tech giant’s product offerings. With its unique position and consumer-focused approach, Apple’s venture into AI could reshape the landscape of AI technology, benefitting both the company and its customers.