In addition to well-known names in AI such as Microsoft, Google, and Meta that have been grabbing headlines lately, OpenAI now faces a quietly advancing competitor: Apple.
On Wednesday, July 19, Eastern Time, media outlets revealed that Apple is developing its proprietary generative AI tool. Last year, the company established a framework for large language models known as Ajax, aimed at unifying Apple's machine learning development. With the aid of Ajax, Apple has developed a chat tool service similar to ChatGPT, internally referred to as AppleGPT.
Apple employees reportedly indicated that the company's AI tool essentially mirrors ChatGPT, Google's Bard, and Microsoft's Bing AI, without any innovative functions or technologies. Apple is actively studying improvements for the underlying model and currently has no plans for a consumer release.
Nevertheless, stock market investors promptly welcomed the news. After the announcement, Apple's share price, which had dipped by less than 0.6% in early trading, soared, reaching an intraday record high of $198.23 by midday, an increase of over 2.3%. It was noted that Apple's market value surged by over $60 billion in mere seconds.
Apple's Strategy for AI Development
According to Wednesday's reports, propelling AI development has been a key focus for Apple in recent months, with multiple teams collaborating on related projects, including attempting to address privacy issues arising from AI technology. However, Apple's executives have not yet set a clear strategy or revealed how they plan to release their AI tools to consumers.
Media pointed out that generative AI has the potential to change the way people interact with phones, computers, and other technologies. Apple is increasingly concerned about missing significant shifts in device operation methods. Therefore, Apple is laying the groundwork for AI services launch through the Ajax framework and its internally used AppleGPT tool.
Wall Street Journal previously noted that Apple's CEO, Tim Cook, has expressed optimism about AI technology multiple times, but has shown restraint in specific applications, being wary of the potential negative impacts of the related technology.
Tim Cook on AI
During Apple's first-quarter earnings call this past May, Cook said that Apple recognizes the enormous scope of the AI wave and will continue to integrate AI into its products thoughtfully.
Cook shared that Apple has already utilized machine learning and AI technology in some of its products, such as the fall detection in some Apple watches and the accident detection feature in the latest iPhones. He also told analysts that, although AI holds great potential, "there are many issues that need to be addressed."
In comparison to executives at Meta, Alphabet, Microsoft, and Amazon, who mentioned "AI" 168 times combined in their respective earnings calls, Cook spent only a few minutes responding to a question about AI. He did not introduce any plans for future products, nor did he comment on competitors' AI software.
Last month, Cook revealed that he personally uses ChatGPT and expressed excitement about its "unique applications." He acknowledged that such AI tools demonstrated "broad prospects" and mentioned that Apple is "keeping a close eye" on them.
However, Cook also cautioned that AI carries serious risks, such as bias and disinformation. He stated that it is developing too rapidly and needs governmental oversight, and tech companies should take responsibility and self-regulate.
