July 24, 2024
Could Apple Be the Next Big AI Stock?


Investment

7th September 2023 at 10:57 pm

Apple is making significant investments in artificial intelligence (AI), allocating millions of dollars a day to develop AI models across multiple teams. The tech giant expects these tools to challenge other leading AI models, including those introduced by OpenAI and Google.

Apple’s controversial AI unit

According to a recent report from The Information, Apple’s conversational AI unit, known as the “Foundational Model”, has about sixteen members, including former Google engineers. The team, led by Apple’s AI chief John Giannandrea, aims to enhance Siri and explore the potential of AI language models.

In addition to the Foundational Models team, Apple also has other groups dedicated to AI research. One such team, the Visual Intelligence Unit, focuses on developing an image generation model. Another group works on “multimodal AI,” which can recognize and generate images, videos, and text.

These AI models have various applications in mind. For example, Apple is reportedly developing a chatbot to interact with customers using AppleCare. Another project aims to enable Siri to automate complex tasks more efficiently.

Apple’s most advanced language model, known internally as Ajax GPT, has been trained on an impressive “over 200 billion parameters”. Those involved in its creation say it supersedes OpenAI’s GPT-3.5, which served as the foundation for an early version of ChatGPT last year.

Apple insists on being the best

Apple CEO Tim Cook believes that timing is crucial when introducing a groundbreaking product. During a public appearance, Cook highlighted Microsoft’s early presence in the tablet market, pointing out that being first does not guarantee success.

Instead, Cook suggested that entrepreneurs focus on one of three goals: to be the best, to be the first, or to make the most of a particular product.

Apple’s approach is consistent with Cook’s philosophy, as the company aims to deliver exceptional products rather than striving to be the first in every category.

“In my opinion, you should never base your success or failure on these three. So as an entrepreneur, I would encourage you to choose either one. And then go for it. Whatever it is.”

“If we still have the best then it doesn’t matter to us whether we are second, third, fourth or fifth. “We don’t feel embarrassed because it took us longer to get it right,” he said. “For Apple, being the best is most important and is far ahead of the other two.”

Apple shares fall amid rumors of Apple ban in China

On Wednesday, Apple shares plunged on reports that China has banned its government officials from using iPhones for work purposes. The move is part of Beijing’s ongoing efforts to reduce reliance on foreign technology and strengthen cyber security.

The Wall Street Journal first reported on the ban, citing sources familiar with the matter. The report said Chinese President Xi Jinping aims to reduce the country’s dependence on foreign technology amid rising geopolitical tensions with the United States.

China is an important market for Apple, whose devices are gaining wide popularity among private consumers and government officials. China is not only a major consumer market, but it also serves as an important manufacturing hub for tech giants.

Apple relies on a vast network of contract manufacturers and suppliers, which employ millions of people in China, to produce the iPhone and other key products. The company generates about a fifth of its revenue from China, according to a recent filing, with total sales of $15.76 billion for the quarter ended July 1, representing an 8% increase over the previous year.

News of the China ban has notably impacted Apple’s share price, which fell more than 4% on Wednesday. The tech giant’s stock is down more than 2.6% in pre-market trading.

This article was originally published on The Tokenist

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