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.
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.
