{"id":134595,"date":"2023-09-08T05:39:38","date_gmt":"2023-09-08T05:39:38","guid":{"rendered":"https:\/\/finbestnews.com\/?p=134595"},"modified":"2023-09-08T05:39:38","modified_gmt":"2023-09-08T05:39:38","slug":"can-apple-be-the-next-big-ai-stock","status":"publish","type":"post","link":"https:\/\/finbestnews.com\/markets\/can-apple-be-the-next-big-ai-stock\/","title":{"rendered":"Can Apple Be the Next Big AI Stock?"},"content":{"rendered":"
Apple is making significant investments in artificial intelligence (AI), allocating millions of dollars daily to developing AI models across multiple teams. The tech giant expects these tools to challenge other prominent AI models, including those offered by OpenAI and Google.<\/p>\n
According to a recent report from The Information, Apple\u2019s conversational AI unit, known as \u201cFoundational Models,\u201d has around sixteen members, including former Google engineers. Led by John Giannandrea, Apple\u2019s head of AI, the team aims to enhance Siri and explore the potential of AI language models.<\/p>\n
In addition to the Foundational Models team,\u00a0Apple has other groups\u00a0dedicated to AI research. One such team, the Visual Intelligence unit, focuses on developing an image generation model. Another group works on \u201cmultimodal AI,\u201d which can recognize and generate images, videos, and text.<\/p>\n
These AI models have various applications in mind. For instance, Apple is reportedly developing a chatbot to interact with customers using AppleCare. Another project aims to enable Siri to automate complex tasks more efficiently.<\/p>\n
Apple\u2019s most advanced language model, known internally as Ajax GPT, has been trained on an impressive \u201cmore than 200 billion parameters.\u201d Those involved in its creation state that it surpasses OpenAI\u2019s GPT-3.5, which served as the foundation for last year\u2019s initial version of ChatGPT.<\/p>\n
Apple CEO Tim Cook believes that timing is crucial when introducing groundbreaking products. During a\u00a0public appearance, Cook highlighted Microsoft\u2019s early presence in the tablet market, illustrating that being first doesn\u2019t guarantee success.<\/p>\n
Instead, Cook suggested that entrepreneurs focus on one of three goals: being the best, being the first, or making the most of a particular product.<\/p>\n
Apple\u2019s approach aligns with Cook\u2019s philosophy, as the company aims to deliver exceptional products rather than striving to be the first in every category.<\/p>\n
\u201cYou should never, ever base success or failure on hitting all three of those, in my view. So as an entrepreneur, I would encourage you to pick one. And then go for it. Whatever it is.\u201d<\/p>\n
\u201cIt doesn\u2019t bother us that we are second, third, fourth, or fifth if we still have the best. We don\u2019t feel embarrassed because it took us longer to get it right,\u201d he added. \u201cFor Apple, being the best is the most important and trumps the other two by far.\u201d<\/p>\n
On Wednesday, Apple shares took a hit after reports suggested that China has banned its government officials from using iPhones for work purposes. The move is part of Beijing\u2019s ongoing efforts to reduce reliance on foreign technology and bolster cybersecurity.<\/p>\n
The Wall Street Journal was the\u00a0first to report on the ban, citing sources familiar with the matter. The report said Chinese President Xi Jinping aims to decrease the country\u2019s dependence on foreign tech amid escalating geopolitical tensions with the United States.<\/p>\n
China is a crucial market for Apple, with its devices enjoying widespread popularity among private consumers and government officials. Not only is China a key consumer market, but it also serves as a significant manufacturing hub for the tech giant.<\/p>\n
Apple relies on a vast network of contract manufacturers and suppliers, employing millions in China to produce iPhones and other flagship products. The company generates nearly one-fifth of its revenue from China, with sales totaling $15.76 billion for the quarter ending July 1, representing an 8% increase from the previous year, according to recent\u00a0filings.<\/p>\n
The news of the China ban has notably impacted Apple\u2019s stock price, which dropped more than 4% Wednesday. The tech giant\u2019s stock is down more than 2.6% in pre-market trading.<\/p>\n
This article originally appeared on The Tokenist<\/i><\/p>\n
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