Apple (NASDAQ:AAPL), which has lagged far behind in the race for artificial intelligence, looks like it will soon make a powerful leap forward, writes Bloomberg.
Apple is following OpenAi and Google (NASDAQ:GOOGL) into building large language models and its own chatbot that can compete with ChatGPT and Bard, but the company has yet to develop a clear strategy for releasing the technology to consumers.
The iPhone maker has created its own framework for building large language models — artificial intelligence-based systems — through a foundation known as "Ajax" and has also created a chatbot service called "Apple GPT."
Several teams collaborated on this project, addressing the potential privacy issues associated with this technology.
Following the news, Apple shares rose 2.3% to a record high of $198.23, rebounding from previous losses. Microsoft Corporation (NASDAQ:MSFT), a partner and main supporter of OpenAI, Apple's competitor, lost about 1% on the news.
Recall that last year Apple was caught off guard with the advent of ChatGPT, Bard and Bing AI from Microsoft. While Apple has been incorporating AI technology into its products for years, it is now heavily in the market for generative tools that can write essays, create images, and create videos based on text prompts. In recent months, this technology has captured the imagination of consumers and businesses, resulting in a rush for related products.
For now, as Apple CEO Tim Cook noted, while the technology has potential, there are still a number of issues that need to be addressed, and therefore Apple will add AI to more of its products, but it will be smart to do so. Cook said he uses ChatGPT and that the company is looking into it.
Generative AI promises to change how people interact with phones, computers and other technologies. This is fraught with damage to Apple devices, which generated nearly $320 billion in revenue for the firm last fiscal year, if the company does not keep pace with advances in AI.
For this reason, Apple has begun laying the groundwork for AI services with the Ajax platform, as well as a tool similar to ChatGPT, or AppleGPT for internal use. Ajax was first created last year to unify machine learning development at Apple.
The tool essentially copies Bard, ChatGPT and Bing AI and does not include any new features or technologies, and is currently available as a web application and with a simplified design not intended for public use.