Apple's Market Value Surges by $71 Billion Following the Revelation of its Secret 'Apple GPT' Project to Compete with OpenAI

Despite the undeniable buzz around Artificial Intelligence (A.I.), largely credited to the ChatGPT chatbot, and the rush of tech giants like Google, Microsoft, and Amazon to perfect generative A.I., Apple has seemed to stay away from the A.I. race. This has raised questions about its relevance in this booming technology trend.

While other Big Tech firms have spent billions on A.I. advancements since ChatGPT, an innovation of OpenAI, shook the technology landscape, Apple has remained discreet, choosing to describe its advancements as “machine learning.”

However, recent reports suggest that the tech behemoth has not been idle. Apple, operating away from the public eye, is believed to be developing its own generative A.I. tools.

Anonymous sources referenced in a Bloomberg report reveal that Apple has created a framework for developing large language models, the backbone of chatbots like ChatGPT and Google’s Bard. Internally known as “Ajax,” this has led to the birth of a chatbot within the company, unofficially called “Apple GPT.”

News of this development resulted in a 2.3% surge in Apple’s stock price, pushing it to a record high of $198.23 and adding a staggering $71 billion to its market cap, which sits at $3 trillion. Even though shares ended trading slightly lower at $195.10, they were still about 1% higher than at the opening bell.

Despite the excitement around Apple’s potential in generative A.I., the company is yet to determine a strategy for its consumer release, according to the same Bloomberg report. The A.I. endeavor, however, is central to Apple’s efforts with multiple teams involved.

Apple did not respond to requests for comments from Fortune.

The Cupertino-based company may have been relatively silent about the A.I. race, but it has been utilizing the technology to refine its devices. For instance, Apple integrated Siri, the world’s first A.I.-driven virtual assistant, into its iPhone 4S in 2011. Moreover, it has embedded “machine learning” into its $3,500 Vision Pro headset.

Generative A.I., a unique category of artificial intelligence, can generate output resembling human-created content or responses, which explains ChatGPT’s abilities like brainstorming, personalizing recommendations, composing songs, and even passing an MBA final.

Apple’s career page shows numerous roles related to generative A.I., suggesting the company’s active pursuit of talent in the area. However, Apple seems to be treading cautiously. Apple’s CEO Tim Cook acknowledged A.I. as a “huge” opportunity but emphasized the need for a thoughtful and cautious approach to its development. He stated that the company will continue integrating it into its products with careful consideration given the issues that need to be addressed.