The Tribune

Apple once again became the world’s most valuable company on Wednesday, pushing Microsoft out of top spot. The plans around artificial intelligence (AI) that the company announced are apparently having an effect on investors. In their eyes, the iPhone manufacturer is ahead in the race for supremacy in the new technology.

When Apple and OpenAI announced their partnership last week, it caused a lot of turmoil in the AI industry. “Siri”, the iPhone provider’s digital assistant, will in future rely on the help of ChatGPT for certain tasks.

Apple does not pay OpenAI a cent for the partnership, as Bloomberg reported on Thursday. Instead, Apple believes that spreading OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments. OpenAI will initially come away empty-handed financially from the partnership.

The price jump could be because many observers have concluded it does not matter at all that Apple does not have the best AI model. Rather, Apple’s position in the age of AI depends on the fact that the company has presented a convincing strategy for how it can become the platform through which users can most easily interact with AI.

Apple shares rose to almost $220 per share, giving the company a market valuation of $3.3trn. Microsoft’s market capitalisation was most recently at $3.26trn, falling behind Apple for the first time in five months. Last week, Microsoft shares were priced around $440 per share in the generally rising market on the US stock exchange.

In the ranking of stock market values, Nvidia is in third place after recent price gains with a market value of $3.1trn. On Friday, Nvidia shares rose to a new record high with an increase of 1.5 percent to $131 per share. Nvidia dominates around 80 percent of the global market for special processors for artificial intelligence (AI), which customers are clamouring for.

Apple had previously announced that the iPhone and other Apple devices would get many new AI functions starting this fall. The software should be tailored to the individual needs of individual users and, at the same time, offer the greatest possible data protection. The AI functions have been deeply embedded in the operating systems for iPhone, Mac and iPad, emphasised software boss Craig Federighi. This would give Apple’s AI models access to the users’ necessary information in order to be useful to them.

Analysts expects the new functions will stimulate demand and enable more direct marketing of artificial intelligence (AI) in the future, as well as a surge in demand for the new iPhone 16 with the iOS 18 operating system in the fall. The savvy investor will keep a close eye on the tech giant.