Apple's integration with ChatGPT was bombarded by Musk. Wall Street smashed the market on the spot and the market value evaporated by over 400 billion dollars

At 1 a.m. on June 11, Beijing time, Apple CEO Tim Cook announced the opening of the 2024 Apple WWDC Global Developers Conference.

Apple CEO Tim Cook announced at the conference that Apple's AI, Apple Intelligence, Apple's first generative AI model, has officially debuted and is open to the public free of charge. Specifically, when it comes to AI applications, Apple Intelligence mainly covers several types of functions such as voice interaction, text creation, and image generation.

Meanwhile, at the press conference, Apple announced that it will establish a partnership with OpenAI to integrate the other party's ChatGPT.

Apple integrates ChatGPT into iOS, iPadOS, and macOS systems, and users can access features such as ChatGPT images and text comprehension.

Siri will also be built on ChatGPT's capabilities. Users can send questions, files, photos, etc. to ChatGPT through Siri. Additionally, ChatGPT will be combined with Apple's writing tools to help users generate content.

Apple Intelligence with GPT-4O will launch later this year on iOS 18, iPadOS 18, and macOS Sequoia.

In fact, Apple has worked very hard at this developer conference. It took more than 40 minutes just to talk about AI features, taking up one-third of the opening session!

However, some media pointed out that the press conference was specifically for Wall Street and investors, so Apple users were not very impressed. The point is, Wall Street didn't pay for it either. After the conference ended, Apple's stock price dropped.

After watching the press conference, the consumer's attitude was “this it?”

It is estimated that Wall Street's attitude is also “this it?”

After all, today in 2024, these AI application functions can already be implemented with countless AI tools. Even if Apple is cool, it's actually a bit dry.

In addition, the main reasons why Wall Street is not optimistic are as follows.

In the field of AI, Apple faces fierce competition from many tech giants. Companies such as Google, Microsoft, and Amazon have accumulated a great deal of experience in AI technology and applications, and have launched widely used AI products. For example,

Google's parent company Alphabet shows in its 2023 earnings report that it has invested more than 20 billion US dollars in AI research and development. Google's AI technology, such as TensorFlow and DeepMind, has made significant progress in various fields (such as healthcare, energy, finance, etc.).

The partnership between Microsoft and OpenAI has invested more than 1 billion US dollars, and various AI services have been launched on the Azure cloud platform, which are widely used in enterprise solutions.

Amazon AWS's AI-related revenue in 2023 reached several billion dollars, and launched various AI and machine learning services, such as Amazon SageMaker and Rekognition.

These companies not only have technological advantages, but also occupy an important position in market applications. In contrast, Apple's AI products mainly focus on Siri and some smart hardware functions, and the overall ecosystem and market influence are relatively weak.

According to some analysis, Apple invests relatively little in R&D in the field of AI. Although Apple has invested a large amount of resources in other fields (such as hardware design, operating system development, etc.), according to Gartner's analysis, Apple's overall R&D investment in 2023 is about 28 billion US dollars, but most of it is used for hardware development and operating system optimization. The specific investment in the AI field was not disclosed in detail. Compared to companies such as Google and Microsoft, the investment appears to be low. In contrast, companies such as Google, Microsoft, and Amazon invest heavily in AI research and development every year, and regularly release important technological breakthroughs and research results. Investors may think that Apple's innovation and breakthroughs in the AI field are insufficient, making it difficult to take a leading position in future AI competition.

Although Apple uses AI technology in its products (such as Siri, smart camera functions, etc.), the scope and depth of commercialization of these applications is relatively limited. In contrast, Microsoft's Azure AI service has widely used AI technology in various industries, such as autonomous driving, healthcare, financial analysis, etc. These commercial applications not only brought direct revenue, but also enhanced the company's overall influence and market value in the AI field. Apple's limitations in the commercial application of AI may make investors doubt its future market potential.

Apple's strategic layout and future plans in the AI field are relatively vague. Compared to other companies, Apple lacks transparency and clarity on the AI development path. For example, both Google and Microsoft have published a number of AI development roadmaps and research reports, and regularly publish relevant progress and future plans. However, Apple rarely discloses its AI technology development path and future plans, which may cause investors to lack confidence in its future development direction and potential in the AI field.

Apple's main source of revenue is still hardware products. The 2023 financial report shows that about 60% of its revenue comes from iPhones, 15% from Macs, and 10% from iPads. Although service revenue is growing, it is still mainly dependent on sales of hardware products. Although Apple's hardware products occupy an important position in the market, a business model that relies on hardware sales may have limitations in the face of an AI-driven future market. Meanwhile, revenue from Amazon and Microsoft's cloud services (including AI services) has grown rapidly, showing greater adaptability to the AI market. Investors may worry that Apple's layout in the AI field will not be enough to change its dependence on hardware sales, and will not be able to gain sufficient competitiveness and market share in the future AI market.

There are reports that Apple is seriously losing technical talent in the field of AI. According to LinkedIn data, a number of Apple AI researchers will move to other tech companies or startups in 2023. For example, Ian Goodfellow, the former head of AI at Apple, joined Google after leaving his job. This may affect Apple's ability to innovate and develop in AI technology, further reducing investors' confidence. Technical talent is a key factor driving the development of AI, and the loss of talent may cause Apple to lag behind in the AI field.

Also, although privacy, or data security, is a major selling point of Apple's press conference. But this is exactly the point where Apple was criticized.

Apple said they have developed a set of private cloud computing (Private Cloud Compute) for the big cloud model, following the iPhone's privacy policy to ensure that the hardware, software, and even programming languages are secure enough.

Netizens said, “If you say safe is safe?” “Are you safe when you promise?”

In the words of Elon Musk (Elon Musk), founder of Tesla and SpaceX: “Apple can't develop its own artificial intelligence, yet it can ensure that OpenAI protects your safety and privacy, which is clearly ridiculous. Apple has no idea what will happen after handing over your data to OpenAI; by doing this, they are completely betraying users.” He also said that if Apple integrates OpenAI at the operating system level, Apple devices will be banned from being used by his company. Do you think what he said makes sense?

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