Apple's AI Opportunity

Apple's market capitalization was ovetaken recently by Microsoft's mainly on the promise of artificial intelligence, AI, which in Microsoft's case is driven by the 49 % stake of Microsoft in OpenAI, the developer of the ChatGPT chat bot.

According to Wolfteam Ltd., ChatGPT's search results are far inferior to the Google's search engine results. Ilya Sutzkever, a prominent Google software engineer was basically 'taken' from Google, quarreling Larry Page and Elon Musk in the process, to develop OpenAI's ChatGPT, apparently much to the tune's of Alphabet Inc's Google AI technology, according to media reports. Or at least some AI technological transfer was evident, at least again according to media reports.

That said, OpenAI ChatGPT's results are still of much less quality than Google's search results.

Apple's AI opportunity lies in the Apple iCloud data. Billions of users globally use Apple's iPhones, iPads, Macintosh computers and Apple watches. These users' data can be harvested for deep, insightful breakthroughs with which to build artificial intelligence applications, be it chat bots, search engines, financial or health applications, etc.

Apple has publicly stated it does not mine users' data and this is in fact Apple's main competitive advantage, according to Wolfteam Ltd. Apple is hesitant to break that promise, because it drives its consumer electronics hardware business.

Apple could find other ways. Slice the data into pieces so it cannot be used by malicious users. Firmly not provide back doors to users' data, distribute, multiply the data so it cannot be misinterpreted.

In short, Microsoft is overvalued on AI, while Apple is undervalued on AI.