Artificial Intelligence
Bard, Bing, ChatGPT and…AppleGPT?
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Artificial Intelligence (AI) has quickly become the hottest new tech around in 2023. In recent months we have seen a plethora of startups and industry giants alike each put their best foot forward in fleshing out what AI is capable of. To date, the most prominent and polished examples have come from companies like Google (Bard), Microsoft (Bing AI), and OpenAI (Chat GPT). Bloomberg now reports that another tech giant may be attempting to join the fray – Apple Inc.
Apple GPT
Known for its industry-defining products, Apple has been discreetly developing a suite of proprietary tools built around the use of artificial intelligence (AI). Despite its outwardly reserved approach toward AI, it is not surprising to learn that Apple has been making strides to stay competitive in the sector.
To that end, Apple has developed a system known as ‘Ajax’ for creating large language models; the same AI mechanisms that underpin its potential competitors like the aforementioned Bard and ChatGPT. The Ajax system is also believed to be the force behind an internally developed chatbot service, unofficially being referred to as ‘Apple GPT’.
The decision to develop Apple GPT was made by recognizing the potential for generative AI to revolutionize device interaction. Despite being developed somewhat behind the scenes, it is believed that the company is planning several initiatives involving its AI, software engineering, and cloud services engineering teams.
The rise of tools like OpenAI’s ChatGPT, Google Bard, and Microsoft’s Bing AI initially posed a challenge for Apple. However, with its vast resources and advancements in areas like image processing and search functions on the iPhone, the company appears to have begun catching up to the pack.
Notably, Apple’s AI-related efforts have continued to expand steadily since the 2018 appointment of John Giannandrea as the senior vice president of Machine Learning and AI Strategy.
Apple Inc. (NASDAQ: AAPL)
Apple Inc. is a giant multinational technology company that is renowned for its innovation. The company designs, manufactures, and markets consumer electronics, computer software, and online services. Its most famous products include the iPhone, iPad, and Mac computers. Beyond hardware, Apple also boasts some of the most intuitive software to be found, with offerings like iOS, iPadOS, macOS, and watchOS. Overall, Apple is a company globally recognized for its suite of polished products boasting best-in-class designs, quality, and user experience.
Apple was founded in 1976 and is based out of based in Cupertino, California.
Market Cap: $3.05T
Price to Earnings Ratio (P/E): 33.12
Earnings Per Share (EPS): $5.89
At the time of writing, Apple (AAPL) boasted the above metrics and is listed as a ‘Strong Buy’ among most major investment firms.
Market Reaction
When news first broke that Apple may be developing its own AI solution, excitement resulted in a notable jump in the price of AAPL to the tune of ~2.3%. This, however, was short-lived as the realization that its Ajax framework was currently only meant for internal use.
Source: www.nasdaq.com/market-activity/stocks/aapl
While there was a modest pullback, AAPL is trading at near all-time highs, ~$195.1, at the time of writing.
A Balanced Approach to AI Advancement
While Apple GPT may be intended for its own developers to leverage if it ever decides to release the product for public use, expect a very polished offering. To achieve this and expand its AI capabilities, Apple is hiring engineers with a robust understanding of large language models and generative AI. The company anticipates that these skills will enhance the now unremarkable Siri, allowing the voice assistant to carry out more complex tasks.
Notably, CEO Tim Cook recently addressed the company’s strategy toward AI, acknowledging its vast potential. In doing so, he took the time to highlight the risks associated with it and called for regulations in the AI sector to prevent bias and misinformation – a stance also shared by influential individuals like Sam Altman and Elon Musk.
