- Apple (AAPL) is reportedly nearing a deal with OpenAI to integrate its generative artificial intelligence technology, ChatGPT, into iPhones.
- The tech giant has also been in talks with Google (GOOGL) to license its Gemini AI chatbot.
- Apple’s stock rose Monday following the news, with the company’s CEO, Tim Cook, expressing belief in the transformative power of AI.
Apple is set to boost its next iPhone operating system, iOS 18, with generative AI technology from OpenAI, a move that could revolutionize user experience and drive significant revenue growth.
Apple’s AI Integration Plans
Cupertino, California-based Apple is planning to announce the details of its next software release, iOS 18, at the Worldwide Developers Conference starting June 10. The tech giant is finalizing terms to incorporate OpenAI’s ChatGPT technology into the new operating system. Furthermore, Apple has been in discussions with Google to license its Gemini AI chatbot, according to Bloomberg.
Transformative Power of AI
On a May 2 conference call with analysts, Apple CEO Tim Cook spoke about the potential of AI on Apple devices. “We believe in the transformative power and promise of AI, and we believe we have advantages that will differentiate us in this new era, including Apple’s unique combination of seamless hardware, software and services integration,” Cook said.
Apple Stock Rises On ChatGPT Report
Following the news, Apple stock climbed 1% to 184.94 in morning trades. Wedbush Securities analyst Daniel Ives believes that the addition of AI to Apple’s next handsets will give consumers a reason to upgrade. Apple could also monetize some AI services through subscriptions. “As more apps and tasks are able to be completed with generative AI, Apple stands to monetize a significant revenue base over the coming years with its massive and unmatched 2.2 billion (unit) installed base (of hardware),” Ives said.
Apple Stock Retakes Key Level
Despite the positive news, Jordan Klein, a trading desk analyst with Mizuho Securities, downplayed the impact of any Apple deal with OpenAI or Google. “My take is none of this is thesis changing for any of these stocks,” Klein said. However, Apple stock has been a laggard among the tech giants, but its shares have perked up recently. After its March-quarter earnings report on May 2, Apple stock rose above its 200-day moving average line for the first time in over two months.
Conclusion
Apple’s potential integration of AI technology into its next iPhone operating system could significantly enhance user experience and drive revenue growth. However, the impact of this move on the company’s stock remains to be seen. As the tech giant continues to innovate and explore new technologies, investors and consumers alike will be keenly watching its next moves.
