Apple is expected to benefit from AI advancements at the edge, potentially boosting gross margins

From Investing.com: 2024-05-14 16:08:02

OpenAI unveils new desktop app, web UI refresh, and GPT-4o model at “Spring Update” event. Demo showcases AI benefits on edge devices like Macs and iPhones, highlighting increased productivity. Bank of America analysts anticipate AAPL as a key player benefiting from AI advancements at the edge, potentially boosting gross margins and Services momentum. CEO Sam Altman emphasizes OpenAI’s ChatGPT model as the best globally, available without ads. GPT-4 supports up to 1 trillion parameters, paving the way for future monetization avenues like ads, subscriptions, or app stores for AI platforms like OpenAI. On-device models have limitations, analysts note, highlighting potential advancements in Apple’s iPhone 16 for superior performance.

In summary, the event sheds light on the potential of AI in enhancing everyday tasks and the role of edge devices like iPhones in this evolving landscape. OpenAI’s innovations with the GPT-4 model and Apple’s future upgrades indicate a shift towards more efficient and powerful AI capabilities for users.



Read more at Investing.com: BofA expects Apple ‘to be a net beneficiary of AI at the edge’ By Investing.com