To The Moon

$Apple(AAPL)$ finally joined the AI party, and Wall Street cheered like crazy for this Apple-OpenAI alliance.

Let's be honest, everyone knows that for AI to really make a revolutionary leap, it needs to spread from the "tools" like $NVIDIA Corp(NVDA)$ to the application side. Apple's entry means AI is about to take over the consumer market.

Now, the top three companies in the US stock market - Apple, $Microsoft(MSFT)$ , and NVIDIA - are in a fierce battle for the throne. And guess what? Behind these stocks soaring, they all have one thing in common: OpenAI, the maker of ChatGPT.

You all know Musk and OpenAI have a complicated history. He's always been their harshest critic. He bashed OpenAI's partnership with Microsoft and didn't hesitate to take aim at Apple this time, accusing this behavior of violating user privacy and data security threats.

Musk also stressed that if Apple had its way, he would ban his companies from using Apple devices. He even made a parody image, mocking how "OpenAI is indirectly sucking up user data through Apple phones."

Is Apple getting a deal, or is it getting a steal?

Before Apple joined the dance, it and $Tesla Motors(TSLA)$ were like two brothers in distress. While the other "tech giants" were booming in AI, these two were lagging behind.

But then, on June 11th, at WWDC 2024, Apple announced its partnership with OpenAI, bringing ChatGPT to iPhones, iPads, and Macs. The inside story? Apple's not paying a dime for this, they're just promoting OpenAI's brand and technology through their distribution channels.

And during the event, Apple hinted that they'll "support other AI models in the future," which is a subtle nod to ChatGPT's competitors.

Sure, Apple's still playing hardball, but in the big model game, they're a bit behind. This partnership with OpenAI gives them time to focus on their own big model development.

Matt Britzman, a stock analyst, said:

"This is a pivotal moment for Apple. They've been struggling with innovation lately. Integrating a third-party tool like ChatGPT is a step forward, and it leaves room for developing their own models in the future - all at a much lower cost than early adopters."

For OpenAI, working with Apple gives them access to Apple's massive user base and rich data resources. They can further train and refine their big models, and reach the world's most affluent consumer group.

Apple, the god of personal consumer electronics, might not be the first in AI, but they're definitely a heavyweight player. And this partnership is lifting the curtain on a whole new chapter in AI's commercial future.

Why is Musk so triggered?

Well, OpenAI made huge technological and commercial breakthroughs after he left, while his Tesla and the social platform X he renamed are struggling to make a profit. X is even facing more fierce competition now.

OpenAI hosts ChatGPT on Microsoft's Azure cloud computing system, so they have to pay Microsoft. The more people use ChatGPT, the more OpenAI has to pay for cloud hosting. So this partnership with Apple is sure to bring more revenue to Microsoft's cloud. But OpenAI isn't paying for nothing. Apple's vast user base gives them a chance to convert free users into paying customers.

Is this AI boom among a few big companies going to burst like the dot-com bubble? Nah, I don't think so. The real question is: Will consumer demand for AI products meet the market's early expectations?

Apple's entry into the game will soon give us the answer. Let's wait and see!