With artificial intelligence dominating interest within the tech sector, development has become paramount. However, that has left a host of companies investing heavily in developing technology while seeing few returns for their effort. That could be changing for Apple (APPL), who has found a way to monetize its AI tools as it looks to edge ahead of the ongoing tech stock race.
The company has recently rolled out its first batch of AI tools for its wide array of products. Moreover, it is set to lean on those developments to fuel its ongoing competition with firms like NVidia (NVDA) and Microsoft (MSFT). Yet, its most recent shift could have it poised to make a giant leap throughout the next year.
Source: Apple Inc
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Apple Monetization of AI Tools Gives it Potential to Lead Tech Stock Arms Race
For the last decade, Apple has been one of the most dominant companies in the world. In the summer of 2020, it became the first company to reach a $2 trillion market cap. Not to be outdone, it followed it up with another record just three years later. Indeed, it became the first company to reach a $3 trillion market cap.
Now, competition has heated up as Nvidia looks to outpace it to become the first to have a $4 trillion market cap. Its role in the developing artificial intelligence industry has many believing in its potential. Yet, amid the growing AI boom, it was the iPhone creator that had the most potential in the space.
Now, it is looking to make good on that potential, as Apple (APPL) has become one of the first companies to monetize its AI tools as the tech stock race heats up. Interestingly, it has done so without having to charge for the use of its Apple Intelligence in its products. The most recent iOS upgrade allows users access to the AI offerings with no charge.
Source: Apple
Also Read: Apple: APPL to Take on Meta as They Explore Key Expansion
Although that could change, it if currelty finding ways to monetize through its competition. Specifically, the newest iOS 18.2 features an āUpgrade to ChatGPT Plusā option. This indicates that the company is advertising for users to enhance their access to AI tools through third parties.
OpenAI has integrated into Appleās Siri tool and is able to be used for free. However, it is charging competitors to have access to its vast user base. Moreover, they are advertising their AI services through the products that already give customers AI capabilities.
This could only grow in the future. Apple has shown interest in partnering with Google Gemini. Allowing the use of AI products on an iPhone or iPad will undoubtedly come with a price. Therefore, providing a clear revenue stream for the company to fuel their development of the technology.
