Investor: Apple is a ‘hidden AI play’ because its products will be central hubs for AI apps

Apple is planning to go all in on artificial intelligence with big announcements expected at next month’s Worldwide Developer Conference (WWDC).

The tech giant is the “hidden AI play,” as its hardware will be the key hub for AI apps, Steve Eisman told CNBC. He says that once these apps start appearing, consumers will replace everything from phones to laptops.

“I know for sure that when all those apps come on, I’ll need a new phone, and I’ll need a new iPad, and I’ll need a new laptop,” Eisman said. “And so when the apps show up, the biggest, probably, beneficiary is going to be Apple, because they’re going to have a refresh of literally everything that they sell.”

What’s more, as noted by Business Insider — the Morgan Stanley investment bank/financial services company — says that, in coming weeks, Apple could notch new upside catalyst from a possible partnership with Google.

On May 11, it was reported by Bloomberg that Apple had closed in on an agreement with OpenAI to use the startup’s technology on the iPhone, “part of a broader push to bring artificial intelligence features to its devices,” reports, quoting unnamed “people familiar with the matter.”

The article says the two sides have been finalizing terms for a pact to use ChatGPT features in iOS 18. Apple also has purportedly held talks with Alphabet Inc.’s about integrating its Gemini AI engine into iOS 18. 

OpenAI is a U.S. based AI research organization founded in December 2015, researching artificial intelligence with the goal of developing “safe and beneficial” artificial general intelligence, which it defines as “highly autonomous systems that outperform humans at most economically valuable work.” According to Google, Gemini is the first model to outperform human experts on MMLU (Massive Multitask Language Understanding), one of the most popular methods to test the knowledge and problem solving abilities of AI models.

And last month, as noted by Forbes, Apple has dealt a new blow to arch rival Google after making an artificial intelligence (AI ) decision that will appeal to all iPhone users. According to Bloomberg’s Mark Gurman, Apple’s iOS 18 AI capabilities will function entirely on your iPhone, eliminating the need for cloud processing.

“The iOS 18 AI move is a huge win if you care about iPhone privacy, but it isn’t surprising, given that Apple is known for its strong focus in the area,” Kate O’Flaherty writes for Forbes. “It also sends a strong message to Apple’s biggest rival Google’s Android that the iPhone maker will do everything it can to win in the AI battlefield as competition ramps up.

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