In an attempt to catch up with the AI boom, tech giant Apple (NASDAQ:AAPL) plans to spend $1 billion every year on generative artificial intelligence (AI), according to a Bloomberg report. With this move, the company is planning to catch up with its rivals like Google (GOOGL), Microsoft (MSFT), and Amazon (AMZN), which have already unveiled AI products.
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While Apple uses AI for photo enhancements and text autocorrection, it has yet to launch a generative AI product like Google Bard or OpenAI’s ChatGPT. According to the report, Apple has already built a large language model framework called Ajax and a rumored chatbot, Apple GPT. However, it has not incorporated either of them into its products. The company plans to integrate AI into Siri, Messages, and Apple Music for auto-generated playlists, as well as in Xcode to aid app developers.
Is Apple Stock a Buy or a Hold?
Analysts are cautiously optimistic about AAPL, with a Moderate Buy consensus rating based on 20 Buys and nine Holds. The average AAPL price target of $207.51 implies an upside potential of 20.2% at current levels.
