Apple (AAPL) stock is experiencing a notable uptick following reports that the tech giant is exploring partnerships with artificial intelligence (AI) startups, particularly OpenAI and Anthropic. These discussions could lead to the integration of large language models into a new iteration of Siri, Apple’s virtual assistant. This move signifies a significant shift for the iPhone manufacturer, which has predominantly relied on its proprietary AI models, known as Apple Foundation Models, to drive its AI functionalities.
The information was initially disclosed by Bloomberg, citing sources familiar with the ongoing discussions. This development comes as a response to Apple’s struggle to keep pace with competitors in the rapidly evolving generative AI landscape. During the recently held Worldwide Developers Conference (WWDC), Apple postponed the highly anticipated launch of an upgraded Siri version, leaving analysts and investors wondering about the company’s future direction.
According to the Bloomberg report, Apple is in preliminary talks with both Anthropic and OpenAI to adapt their AI models, specifically Claude and ChatGPT, for testing within Apple’s cloud infrastructure. As these discussions are still in the early stages, no definitive agreements have been reached yet. Currently, Apple utilizes ChatGPT to handle web-based queries on Siri, although the primary functionality of the assistant remains reliant on Apple’s own technology.
This exploration into third-party AI models raises questions about Apple’s current AI capabilities and its commitment to innovation in this space. In an effort to rejuvenate its AI development, the company has also made significant changes to its AI team, aiming to accelerate the pace of AI innovation and improve product rollout.
If Apple chooses to implement third-party AI models, it would align itself more closely with competitors like Samsung, which leverages Google’s Gemini models for its AI features. Additionally, Amazon has adopted Anthropic’s Claude to enhance its Alexa+ assistant, positioning itself strongly in the AI market. This potential collaboration could enable Apple to enhance Siri’s capabilities and better compete in the AI-driven tech landscape.
As for the investment perspective, AAPL stock currently holds a Moderate Buy consensus rating on TipRanks. This rating is based on 16 Buy ratings, nine Hold ratings, and four Sell ratings from various analysts. Furthermore, the average price target for Apple shares stands at $226.54, suggesting a potential upside of 10.4% from current levels. Despite these optimistic projections, it is noteworthy that AAPL stock has experienced a decline of 17.9% year-to-date.
Investors interested in Apple’s future developments, particularly in AI, may want to keep a close eye on the outcomes of these discussions with OpenAI and Anthropic. The integration of advanced AI technology could significantly alter the landscape for Siri and enhance Apple's competitive edge in the tech industry.
