Apple stock jumps on report that it is testing own ChatGPT-like tools
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Apple is quietly working on AI tools that could challenge those of OpenAI, Alphabet’s Google and others.
PHOTO: REUTERS
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Los Angeles – Apple is quietly working on artificial intelligence (AI) tools that could challenge those of OpenAI, Alphabet’s Google and others, but the company has yet to devise a clear strategy for releasing the technology to consumers.
The iPhone maker has built its own framework to create large language models – the AI-based systems at the heart of new offerings like OpenAI’s ChatGPT and Google’s Bard – according to people with knowledge of the efforts. With that foundation, known as Ajax, Apple has also created a chatbot service that some engineers call “Apple GPT”.
In recent months, the AI push has become a major effort for Apple, with several teams collaborating on the project, said the people. The work includes trying to address potential privacy concerns related to the technology.
Apple shares gained as much as 2.3 per cent to a record high of US$198.23 (S$262) after Bloomberg reported on the AI effort on Wednesday, rebounding from earlier losses.
The company had been caught flat-footed in the past year with the introduction of ChatGPT, Bard and Microsoft’s Bing AI. Although Apple has woven AI features into its products for years, it is now playing catch-up in the buzzy market for generative tools, which can create essays, images and even video based on text prompts. The technology has captured the imagination of consumers and businesses in recent months, leading to a stampede of related products.
Apple has been conspicuously absent from the frenzy. Its main AI product, the Siri voice assistant, has stagnated in recent years. But the company has made AI headway in other areas, including improvements to photos and search on the iPhone. There is also a smarter version of auto-correct coming to its mobile devices in 2023.
Publicly, chief executive officer Tim Cook has been circumspect about the flood of new AI services hitting the market. Although the technology has potential, there are still a “number of issues that need to be sorted”, he said during a conference call in May. Apple will be adding AI to more of its products, he said, but on a “very thoughtful basis”.
In an interview in June, Mr Cook said he uses ChatGPT and that it is something that the company is “looking at closely”.
Behind the scenes, Apple has grown concerned about missing a potentially paramount shift in how devices operate. Generative AI promises to transform how people interact with phones, computers and other technology, and Apple’s devices, which produced revenue of nearly US$320 billion (S$424 billion) in the last fiscal year, could suffer if the company does not keep up with AI advances.
This is why Apple began laying the foundation for AI services with the Ajax framework, as well as a ChatGPT-like tool for use internally.
The company has already deployed AI-related improvements to search, Siri and maps based on that system, and Ajax is now being used to create large language models and serve as the foundation for the internal ChatGPT-style tool, the people said.
Apple employees say the company’s tool essentially replicates Bard, ChatGPT and Bing AI, and does not include any novel features or technology. The system is accessible as a Web application and has a stripped-down design not meant for public consumption. As a result, Apple has no current plans to release it to consumers, although it is actively working to improve its underlying models.
Beyond the state of the technology, Apple is still trying to determine the consumer angle for generative AI. It is now working on several related initiatives. While the company does not yet have a concrete plan, people familiar with the work believe Apple is aiming to make a significant AI-related announcement in 2024. BLOOMBERG
