To The Moon

🌟🌟🌟It's Official!  $Apple(AAPL)$   is joining the AI race!  Tim Cook, CEO of Apple has confirmed on Wednesday that Apple is pouring money into AI.  Apple has nixed its plans to build an EV, a project that was in the works, code named Project Titan for 10 long years.

According to Bloomberg, Apple has been testing an Apple GPT rival that could compete with ChatGPT for several months already.  Apple is designing an Ajax framework for large language models.

Ajax is said to be more capable than the prior generation ChatGPT 3.5 and it has been trained on more than 200 billion parameters. 

Apple is experimenting with Siri enhancements, software that generates videos and images, and multimodal AI technology that works with images, videos and text. 

Apple is on track to spend more than USD 4 billion on AI servers in 2024 working on conversational AI research as training language models require a lot of hardware. 

Apple is already using AI and machine learning for a list of functions in its products.  For example Apple is using machine learning to enhance photos that are taken with iPhone's camera.  This includes everything from Deep Fusion for cutting down on noise in images to the new iPhone 15 Portrait Mode tools that allow the user to enable portrait images after  a photo has been taken.

Spotlight search and search throughout the iOS operating system are  powered by AI.   Visual Lookup is a feature that allows the iPhone to detect the content on photos is a machine learning tool. 

Crash Detection and Fall Detection both use machine learning to determine whether someone has been in a crash or had a fall based on information collected by various sensorrs in Apple devices.

The ECG feature on the Apple Watch that  looks at heart rhythm data to determine whether someone is likely to be experiencing irregular heartbeats, uses AI algorithms. 

Apple plans to have Generative AI feature available on the iPhone and iPad around late 2024, which is when the new iOS 18 is to be launched. 

Apple often announces new software products and features in June at its annual developer's conference so it may make further announcements on the progress of its AI developments then. 

So it's exciting news for Apple's loyal fan base and investors that Apple is finally joining the AI race. 

Performance wise Apple is down 1.2% in the past 5 days and 2.2% year todate.  However in 2023, Apple is up 24%.

Wall Street Analysts are bullish on Apple with a Buy rating according to Tipranks, Target price of USD 206.15, an upside potential of 13%.

I am glad that Apple has made its decision to switch its focus on AI instead of EV, as the latter faces intense competition among the key players. 

It is a smart move for Apple and I believe that Tim Cook is on the right path to take Apple to the next level of growth and success. 

I have every confidence that Apple will succeed as Apple has  the means and deep pockets to take its position among Big Tech in the new frontiers of AI.  

I will continue to stay invested in Apple just as Warren Buffett has maintained his conviction in  Apple with 50% weightage in $Berkshire Hathaway(BRK.B)$ . 

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