Apple AAPL is keeping no stone unturned to develop its generative AI system. It is reportedly negotiating with major news and publishing organizations to use its archives of news articles in the development process.
Per Reuters, the iPhone maker is ready to spend $50 million for licensing the archives of the news articles. Condé Nast, publisher of Vogue and the New Yorker, NBC News and IAC, which owns People, the Daily Beast and Better Homes and Gardens, were the news organizations contacted.
Apple has been utilizing its generative AI to improve the basic functions of its devices. In its latest iOS 17, the company used AI to improve the auto-correct system.
Per Bloomberg’s Mark Gurman, Apple has already built its own large language model called Ajax. It has also rolled out an internal chatbot dubbed Apple GPT to test out the functionality. Apple plans to spend roughly $1 billion per year on its generative AI endeavor.
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Generative AI Space Getting Competitive
Apple has a lot to catch up in the generative AI space that’s currently dominated by Microsoft MSFT backed startup OpenAI, Amazon AMZN and Alphabet GOOGL.
Microsoft is being propelled by the success of ChatGPT. It is continuously making significant strides by integrating OpenAI's latest LLM, GPT-4, into its Bing search engine and Edge browser. Additionally, Microsoft Azure provides the Azure OpenAI Service, facilitating the seamless application of LLMs and generative AI techniques across various applications.
Amazon recently announced the general availability of its fully managed service called Amazon Bedrock, which provides seamless access to high-performing foundation models from AI companies through an API.
Alphabet’s Google recently introduced its new, advanced and powerful large language model, namely Gemini, which is available in three different sizes: Gemini Ultra, the largest and most capable one; Gemini Pro, designed to offer scalability across various applications; and Gemini Nano, which is designed for specific tasks and mobile devices.
Further, Google Cloud announced the general availability of its suite of AI-powered assistance tools for code completion and generation called Duet AI for Developers, which provides developers with real-time code suggestions, chat assistance and enterprise-focused customization.
Meanwhile, Apple is working on solutions to run large language models from an iPhone or iPad. This is expected to help AAPL run a generative-AI-powered Siri on-device that simultaneously assists with various tasks, including the generation of text and features an improved ability to process natural language. These initiatives are expected to improve Apple’s competitive prowess in the generative AI space.
Apple currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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