Apple Adds $71 Billion in Market Value

Apple has entered the race to dominate the AI space. The company is developing its own generative AI tools to compete with OpenAI which experience huge success with the release of ChatGPT last year. With rivals like Microsoft, Alphabet, and Meta actively investing billions in the development of language models, Apple’s move has sent shockwaves through the tech industry.

Apple’s stock briefly jumped by 2% after news of their AI efforts was revealed. This added $71 billion to their market valuation. In this article, we will look at recent trends affecting this tech giant.

Apple stock briefly jumped by 2%

Recently, stock climbed by up to 2.3% reaching a record high on July 19 , 2023. This sudden jump in value was attributed to a Bloomberg News report revealing Apple’s efforts to develop its own artificial intelligence (AI) language model internally. Although shares later reduced gains to just under 1%, the increase added as much as $71 billion to the company’s market valuation, bringing company’s total market capitalisation to a record $3.12 trillion.

The one-day gain is equal to the total market cap of large-cap companies such as Micron, Waste Management, and exceeds the total market value of 390 S&P 500 companies.

Apple has avoided publicity around AI

The most valuable company in the world has avoided publicity around AI, referring to its developments as “machine learning”. At the same time, tech giants Microsoft, Alphabet, and Microsoft race to develop powerful generative AI. Following the great success of OpenAI’s ChatGPT last year, Big Tech has invested heavily in AI. Microsoft has upgraded its Bing search engine with AI while Alphabet’s Google introduced its own chatbot, Bard. Nvidia and Amazon have also defined their own AI strategies, while the Tesla cofounder recently announced his latest startup, xAI.

‘Apple GPT’

Apple is reported working on its own generative AI tools, from integrating Siri into its iPhone and including machine learning into its latest Vision Pro headset.

Bloomberg reported that Apple has created its own framework for making large language models, the systems which serve as the foundation for ChatGPT and Bard. The codename of the iPhone maker’s AI project is “Ajax”. It includes the creation of its own chatbot, which some Apple engineers are internally referring to as “Apple GPT.”

Despite the buzz around Apple’s generative AI potential, the company has yet to finalise a plan for releasing its own offering to consumers.

The news outlet’s sources said that the AI push had become a central effort at Apple in recent months, with multiple teams working together on project Ajax. Some of the work includes addressing potential privacy concerns related to AI, as Apple has traditionally prided itself on having strict privacy rules.

Its AI chatbot is similar to OpenAI’s ChatGPT and Alphabet’s Bard with a basic design that was not intended for public use. Apple is currently focusing on improving the large language models that form the foundations of its AI goals. 

Apple has been slow to embrace the LLM (large language model) trend. Microsoft has embedded OpenAI’s ChatGPT into its software, Google has integrated Bard into its search engine, Amazon will provide LLMs (large language models) through AWS (Amazon Web Services) and Meta has officially released its largest language model.

A.I. race and Apple

Apple has not declared itself a competitor in the new generative AI race, even though the company has been using this technology to enhance its devices. In 2011, the company integrated Siri, the first AI-powered virtual assistant in the world, into its iPhone 4S, and more recently Apple integrated “machine learning” into its Vision Pro headset.

As Generative AI is able to produce results similar to human-generated content or responses, ChatGPT can brainstorm ideas, make personalised recommendations, compose songs and even pass an MBA final.

For months, Apple has been looking to recruit generative AI talent. It has dedicated a complete career page on its website to finding experienced engineers.

The president and co-founder of London-based generative AI firm Encord think that “we haven’t seen anything yet.” He told Fortune that Apple could “really kick start the AI revolution” with the AI technology it is currently developing.

He said, “Apple has a huge distribution advantage over other A.I. research companies.” “It’s a no-brainer for them—especially if they can bundle it with their existing iCloud services already used by hundreds of millions of consumers.”

However, Hansen said that Apple’s entry into the market would probably not affect other players in the field of generative AI.

While many experts agree that Apple’s adoption of advanced generative AI would hugely transform its products, the company appears to be taking a cautious approach.

Apple CEO Tim Cook said earlier this year that the company saw AI as a “huge” opportunity with “very interesting potential” – yet he emphasised the need for caution in developing the technology.

Apple sends ripples through the tech world

Apple’s decision to develop its own generative AI tools has sent ripples through the tech world. The sudden increase in market value, which raised its total value by $71 billion, demonstrates the enormous potential that investors see in Apple’s AI initiatives. Although its tech competitors are racing to develop powerful AI models, Apple’s past approach to AI as “machine learning” has kept it out of the spotlight up to now.

Apple is cautiously moving forward with “Apple GPT,” addressing privacy concerns and working to enhance its large language models for future AI ambitions. However, experts believe that Apple’s entry into the generative AI race may transform its products, benefiting millions of consumers who already use its iCloud services.

Even though the AI revolution is moving fast, Apple’s contribution in the field could have a significant impact on how technology advances in the future and improve the way we interact with our devices. Only time will tell how big of an impact Apple will have on the industry and the innovative products and services that have the potential to change our daily lives.

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