Apple Stocks Surge 36% over the Last 6 Months as Company Explores Generative AI, Possible ChatGPT Competitor
Shares of tech giant Apple Inc. have surged 36% over the last 6 months. The company has reportedly been developing its own large language models (LLMs) in an internal framework known as "Ajax." Moreover, Apple is allegedly testing a chatbot, colloquially referred to by some engineers as "Apple GPT," sparking speculation of a possible competitor to OpenAI's ChatGPT.
The news comes as a surprise to many as Apple has typically been reticent about its advancements in AI. Its approach contrasts that of tech rivals like Alphabet and Microsoft, which have been more vocal about incorporating cutting-edge AI technology into their offerings. In fact, Apple barely mentioned AI at its developer conference in June.
Notwithstanding, Apple has subtly integrated advanced AI into several of its products such as Apple Photos, on-device texting, and the recently launched mixed-reality headset Vision Pro. However, its core AI product, the voice assistant Siri, is often criticized for lack of significant development over the years.
The new AI initiative is led by John Giannandrea, the company's head of machine learning and AI, and Craig Federighi, Apple's top software engineering executive. According to the Bloomberg report, the new virtual assistant can summarize text and answer questions based on trained data and is currently being used for product prototyping.
Despite the excitement around Apple's entry into the AI space, Dan Howley, Tech Editor at Yahoo Finance, cautioned against over-optimistic expectations. He speculated that the AI technology might serve behind the scenes to enhance other Apple software, a strategy the company often employs to maintain its user-friendly product ecosystem.
The lack of a concrete plan for the new tools was also highlighted. Apple has yet to confirm where the new technology would fit into its existing product suite, and it doesn't possess a proprietary search engine like its rivals. There's also speculation that the AI advancements will not be a standalone product but will instead silently power its existing offerings.
However, the report indicated that the company could make a significant AI-related announcement next year, which could clarify its strategic direction. The news had an immediate impact on the stock market. Apple's shares surged by up to 2% to a record high, while the shares of Microsoft, Nvidia, and Alphabet dropped more than 1%.
It's worth noting that Apple CEO Tim Cook has recently advocated for regulation and thoughtful deployment of AI technologies to avoid issues such as bias and misinformation.
As Apple quietly maneuvers in the AI landscape, investors and tech enthusiasts are keenly watching for what might be the company's next big move.
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