Apple shares fell during premarket trading on Tuesday following the company’s debut of “Apple Intelligence” at its annual WWDC event. This new strategy, which integrates generative AI across its products, confirms a long rumored partnership with ChatGPT maker OpenAI and has sparked backlash from Elon Musk. The tech giant’s shares were down 0.83% to $191.51, continuing a trend from the day before when they fell nearly 2% during regular trading. Despite Apple’s reputation as a leader in technology, it has been perceived as lagging behind competitors like Google and Microsoft in the AI space.
CEO Tim Cook unveiled Apple’s plans to integrate artificial intelligence tools like ChatGPT into its devices during the WWDC event, along with updates for the iPhone and Vision Pro mixed-reality headset. The announcement of “Apple Intelligence” and the partnership with OpenAI was met with mixed reactions from Wall Street, with some investors expressing concerns about the company’s ability to keep up with the rapidly evolving AI landscape. Apple’s shares had climbed roughly 14% leading up to the event, but the unveiling of its AI strategy caused a reversal in this trend.
Apple’s decision to partner with OpenAI and integrate ChatGPT into its products was a long-expected move in Silicon Valley. Reports and speculation about the collaboration had been circulating for weeks prior to the event. However, the partnership has drawn criticism from Elon Musk, who called it an “unacceptable security violation” and threatened to ban Apple devices from his companies if ChatGPT is integrated at the operating system level. Musk, who has had a tumultuous relationship with OpenAI, recently raised $6 billion for his own AI startup, xAI, to compete with OpenAI.
Musk’s criticism of Apple’s partnership with OpenAI extends to visitors of his companies, who will be required to check their Apple devices at the door if the integration goes ahead. Musk expressed concerns about the privacy and security implications of integrating ChatGPT into Apple devices, accusing the tech giant of putting users’ information at risk. Despite the backlash from Musk and some investors, Apple’s strategy to bolster its products with generative AI tools like ChatGPT marks a significant step in the company’s efforts to remain competitive in the AI space.
While Apple’s unveiling of “Apple Intelligence” and its partnership with OpenAI have sparked controversy and mixed reactions, the tech giant has not provided a timeline for when the new features announced at the WWDC event will be available to consumers. The company’s decision to integrate AI tools like ChatGPT into its products signals a strategic shift towards harnessing the power of artificial intelligence to enhance user experience and innovate its offerings. As the competition in the AI space continues to intensify, Apple’s foray into generative AI will be closely watched by investors, industry analysts, and tech enthusiasts alike.
