Apple (AAPL) Stock Rises Briefly Following Rumors of Internal Generative AI Chatbot Rivalling ChatGPT

UTC by Tolu Ajiboye · 3 min read
Apple (AAPL) Stock Rises Briefly Following Rumors of Internal Generative AI Chatbot Rivalling ChatGPT
Photo: Shutterstock

Reportedly, select staff have access to the developing Apple AI chatbot the company plans will rival ChatGPT and Bard.

Tech giant Apple Inc (NASDAQ: AAPL) is reportedly developing an artificial intelligence (AI) generative pre-trained transformer (GPT) model to rival OpenAI’s ChatGPT. Following a news report initially published by Bloomberg, Apple stock briefly rose but ended the day up by 0.71%, at $195.1.

As of press time, AAPL has fallen a further 0.64% from its close and is at $193.75 in after-hours trading. In the last year, AAPL has seen a 27.48% rise and more than 50% since January.

Unofficially called the “Apple GPT” according to the Bloomberg report, Apple’s AI GPT is currently only available within the company and is likely only accessible by a select few. According to the report, Apple stalled an internal release because it considered several concerns plaguing generative AI.

The internal GPT system, called Ajax, is reportedly very similar to Google’s Bard and ChatGPT. Apple reportedly named it “Ajax” because it uses Jax, a machine learning framework from Google.

Some staff at Apple believe that the company is working hard at the AI GPT so that a 2024 launch is possible. There are currently no official details on the technology or how Apple would launch the GPT.

Apple AI and the Vision Pro

Apple could successfully pump the sale of its iPhone if it can develop a generative AI chatbot that runs exclusively on the devices. The company could release a new AI chatbot tailored to run on the iPhone chip to assure better performance than available on ChatGPT or Bard.

Apple could also launch the AI chatbot and make it compatible with the upcoming Vision Pro mixed-reality headset. The headset has several features that may benefit from infusion with AI, including life-size images for FaceTime calls, and Spatial Audio.

However, Apple recently reduced its production forecast for the Vision Pro due to design and manufacturing problems. Although Apple still plans to launch the device next year, the plan is reportedly to produce less than 400,000 Vision Pros next year and even lower in 2024. Apple is currently struggling with the yield for the headset’s micro-OLED displays, in-air typing, and several other issues. In addition, the headset’s noted EyeSight feature, which switches the device between transparent and opaque modes for the benefit of people around the user, is glitching.

While Apple has not confirmed or denied the chatbot, the company is no stranger to machine learning as it uses this technology for several features. Machine learning helps Siri with speech recognition and supports the Photos app’s detection of objects in an image, including faces and animals like pets.

If Apple launches an AI product, it would officially join a long list of companies looking for chunks of the AI market since OpenAI launched ChatGPT last year. Bard recently launched in the EU after reservations from the Irish Data Protection Commission (DPC) in June. The DPC said Google did not provide enough info about how the AI tool would ensure user privacy.

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