Apple stock: iPhone maker close to deal with OpenAI

Apple (AAPL) is reportedly close to a deal with ChatGPT maker OpenAI to use its generative artificial intelligence technology on iPhones. Apple's stock increased on Monday due to this news.


Cupertino, California-based Apple is looking to integrate generative AI technology into its next iPhone operating system, iOS 18. Details of that software release will be announced at Apple's Worldwide Developers Conference, which begins June 10.

Bloomberg reported late Friday that Apple is finalizing terms to include OpenAI's ChatGPT technology in iOS 18. Apple is also in talks Alphabet(GOOGL) Google will license its Gemini AI chatbot, Bloomberg said.

Apple Chief Executive Tim Cook spoke extensively about the potential of AI on Apple devices during a conference call with analysts on May 2.

Cook said, “We believe in the transformative power and promise of AI, and we believe we have the advantages that will differentiate us in this new era, including the integration of Apple's seamless hardware, software, and services.” Contains a unique combination.”

Apple stock rises on ChatGPT report

Apple's shares rose 1.8% to close at 186.28 in the stock market today.

Wedbush Securities analyst Daniel Ives said in a client note on Monday that adding AI to Apple's next handsets, the iPhone 16 series, will give consumers a reason to upgrade. He said Apple may also monetize some AI services through subscriptions.

Ives said, “As more apps and tasks can be accomplished with generative AI, Apple with its vast and unmatched 2.2 billion (unit) installed base (of hardware) will be able to monetize a significant revenue base in the years to come.” Ready to do.”

He added, “We would expect Apple to build a next level Siri technology with OpenAI that can provide complex tasks and more advanced features for Apple users that will eventually be a separate monthly subscription service with other AI features “

Apple stock hits key levels

However, Jordan Klein, trading desk analyst at Mizuho Securities, downplayed the impact of any Apple deal with OpenAI or Google.

“I believe the thesis is not changing for any of these stocks,” Klein said in a client note. “We'll have a lot more conversations and potential partnerships around Apple and AI in the coming months.”

Apple's stock has been a laggard among tech giants, but its shares have been on a rise recently. Following its March-quarter earnings report on May 2, Apple stock rose above its 200-day moving average line for the first time in two months, according to IBD MarketSurge charts.

Follow Patrick Seitz, formerly of Twitter, on @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.

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