Apple to invest $1 billion annually on generative AI in a bid to catch up with OpenAI’s ChatGPT

Apple is reportedly investing $1 billion annually to integrate generative artificial intelligence (AI) throughout its product lineup as the iPhone giant seeks to narrow the gap with Open AI’s ChatGPT, according to a Bloomberg report published on Sunday.

As part of the initiative, the company is targeting a potential rollout of generative AI features in its iOS, but not before late 2024. This move signals Apple’s determination to compete with rivals like Google and OpenAI in advancing generative AI technology. The report also indicates that Apple is exploring the integration of AI into services such as Siri, Messages, and Apple Music.

In the area of music streaming, Apple aims to use AI to create automatically generated playlists, akin to what Spotify has achieved through its partnership with OpenAI. Additionally, Apple is considering the utilization of AI within its Xcode platform to assist app developers, as mentioned in the report.

Discussing the seriousness of the situation, an insider familiar with the matter told  Bloomberg, “There’s a lot of anxiety about this and it’s considered a pretty big miss internally.”

Leading the charge on Apple’s AI initiatives are executives such as John Giannandrea, the Senior Vice President of Machine Learning and AI Strategy, Craig Federighi, the Senior Vice President of Software Engineering, and Eddy Cue, the Head of Services, as reported by Bloomberg.

As of now, no official comment from Apple has been made available, as their spokesperson wasn’t immediately reachable.

Over the past year, while OpenAI’s ChatGPT made waves in the digital world, Apple remained on the sidelines. During this time, other tech giants like Google and Microsoft introduced generative AI versions of their search engines, capable of providing responses that closely resemble human language. Microsoft also enhanced its Windows applications with more intelligent digital assistants, and Amazon unveiled an AI-infused update for Alexa.

According to the report, Apple’s CEO Tim Cook acknowledged that the company has been working on generative AI technology for years. However, the sudden surge of interest in AI within the industry took Apple by surprise, prompting them to scramble to catch up since late last year, as highlighted by Bloomberg.