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By Eric Fry, InvestorPlace.com
Hello, Reader
On Monday, June 10, just after 1 p.m. Eastern, Tim Cook is expected to take the stage at Apple Park in Cupertino, California… and he could make his company’s biggest announcement since Steve Jobs revealed the iPhone.
You may have some idea of what the Apple Inc. (AAPL) CEO’s announcement could be. After all, only one megatrend in the world right now is capable of supercharging Apple — artificial intelligence (AI).
Ever since the release of ChatGPT, generative AI models have surged in popularity. And that’s led to a war among Big Tech companies to use AI to make their products faster, more efficient, and more cutting edge.
Microsoft (MSFT) and Alphabet (GOOG, GOOGL), for example, have been integral to the pace of AI innovation thus far. Microsoft, of course, is a major funder of OpenAI… and most of us have seen Google’s AI Overviews during our web searches over the past week or two.
Apple, however, has played its cards close to the vest.
Tim Cook has teased some AI updates for 2024. “We’ve got some things that we are incredibly excited about that we’ll be talking about later this year,” he said in response to a gen-AI question on Apple’s first-quarter earnings call (more on this later).
Whatever AI path Apple decides to take, AAPL analysts are convinced that Cook’s announcements at this week’s Worldwide Developers Conference (WWDC) – which may as soon as Monday afternoon – could be the “AI Golden Goose.”
That’s why, just days before this massive Apple AI announcement, I will take to the stage myself to address the hype around Apple’s AI announcements.
In fact, it’s not hyperbole to say that I’ll be making one of the biggest calls of my career at this event… one about a partnership announcement that could significantly boost a mostly unheard-of small-cap tech stock (more on that below).
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Jeff Bezos Next Trillion Dollar Bet (Shocking)
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What We Expect From Apple’s AI Announcements
Not much is publicly known about Apple’s AI innovations or plans, but that’s where my contacts in Silicon Valley come in handy.
Most insiders expect Apple to announce overhauls of its software ecosystem, particularly through AI enhancements. That means iOS, iPadOS, macOS, and all the other Apple operating systems will be getting native AI integration.
While Apple is playing catch-up with Microsoft in the AI space, Bloomberg’s Mark Gurman foresees iOS 18 as a “groundbreaking” AI software update.
Imagine your iPhone helping you edit photos, craft messages, and even jazz up your emojis using artificial intelligence. And that’s just the beginning.
Earlier last month, Apple rolled out new iPad Airs and Pros. Apple’s newest iPad Pro is its slimmest device yet, sporting the new Apple M4 chip to power its AI capabilities. This chip isn’t just about speed; it’s designed to handle AI tasks more efficiently. The iPad Air also received a redesign. It comes with Apple’s M2 chip, which isn’t as advanced as the M4 but powerful nonetheless.
If Apple’s past keynotes are any clue, expect a lot of buzz around these in-house chips and their AI prowess at WWDC.
So, what can AI do for you in the Apple ecosystem? Think auto-generated playlists in Apple Music, AI-assisted writing in Pages, and even slide deck creation in Keynote. Developers might get a boost too, with AI helping to write code in Xcode. Enhanced search capabilities in Spotlight, a more conversational Siri, and Siri’s integration with Messages and Shortcuts are also on the horizon.
The best part? Many of these features will be available on both iOS and macOS, making your Apple experience even more seamless.
While it’s very likely we’ll see a preview of iOS 18 with new AI capabilities, we can also dig in the archives to understand what Tim Cook has up his sleeve…
What Apple’s Research Can Tell Us
So, let’s go back in December 2023, when Apple published two significant research papers on artificial intelligence, which included techniques for 3D avatars and more efficient large-language models (LLMs) for mobile.
Such advancements could put Apple in first place almost overnight, as Apple’s products become supercharged with capable, immersive visual experiences and complex LLMs running locally on an iPad or iPhone.
After the first research report, the world of finance buzzed with excitement as Apple’s groundbreaking research could revolutionize various industries, including entertainment, gaming, and virtual meetings.
In a nutshell, Apple scientists have introduced HUGS (Human Gaussian Splats), a method to generate animated 3D avatars from short videos taken with a single camera. This innovation promises to create lifelike avatars in just 30 minutes, using only 50 to 100 frames of video.
HUGS leverages a technique called 3D Gaussian splatting, which efficiently renders both the human figure and the background. The human model starts with a statistical body shape model known as SMPL, but HUGS allows for deviations to capture intricate details like clothing and hair. A neural deformation module then animates these Gaussians, ensuring realistic movement without glitches.
This technology is not only faster — up to 100 times quicker in training and rendering compared to existing methods — but also delivers photorealistic results. Imagine the potential for creating hyper-realistic avatars for virtual reality, gaming, or even remote work environments. As Apple continues to push the envelope, investors are keenly watching how this innovation could open new revenue streams and reshape market dynamics.
In their second paper, Apple researchers addressed a significant challenge: deploying LLMs on devices with limited memory. Modern natural language models, such as GPT-4, have hundreds of billions of parameters. This makes inference costly on consumer hardware.
Imagine having the power of advanced AI assistants and chatbots right in your pocket, running smoothly on your iPhone or iPad. This isn’t a far-off dream; it’s becoming a reality thanks to some clever innovations.
To solve this, the team developed a system that minimizes the amount of data transferred from flash storage to the device’s memory during use. Think of it like reducing the number of trips you need to make to the grocery store by buying in bulk. They introduced two main techniques: “windowing,” which reuses recent data to cut down on repeated transfers, and “row-column bundling,” which reads larger chunks of data at once by storing rows and columns together.
The results are impressive. On an Apple M1 Max CPU, these methods improve the speed of AI tasks by four to five times compared to traditional methods. On a GPU, the improvement is even more dramatic, with speeds increasing by 20 to 25 times.
This breakthrough means that soon, your mobile devices could handle complex AI tasks with ease, making advanced AI tools more accessible than ever. It’s a game-changer for how we interact with technology, bringing powerful AI capabilities right to our fingertips.
Apple is not just enhancing its devices but also anticipating future needs for AI-infused services. By enabling more complex AI models to run on devices with limited memory, Apple is paving the way for a new class of applications and services that leverage the power of LLMs in previously unfeasible ways.
If applied judiciously, Apple’s latest innovations could elevate artificial intelligence to the next level. Photorealistic digital avatars and powerful AI assistants on portable devices seemed far off just months ago, but thanks to Apple’s scientists, the future is rapidly becoming reality.
From EVs to AI
For context, until recently, Apple had invested billions over the past decade into developing an electric vehicle, a project codenamed “Project Titan.” But Cook terminated this project in February and reallocated all resources toward creating new AI tools.
This move marks a significant change for Apple, which had been notably absent from the AI arms race. By abandoning a decade-long EV initiative, Apple is signaling its commitment to AI and simultaneously reflecting the new technology’s growing dominance.
What’s more, narrow AI systems are already having the biggest impact in the “text” world through voice and text AI systems.
Siri, Alexa, Google Assistant… all are voice AI systems.
ChatGPT is a text AI system.
These narrow AIs are already so good because there is an abundance of easily accessible and high-quality text data in the world. They’ve benefited from having a lot of fuel from the start. There is, however, a lot of fuel still left in the tank for text AI systems to reach ubiquity and continue improving…
With Apple joining the fray, I think we’re about to see a new level of narrow AI, as Apple doesn’t commit to bringing something to market unless it has it figured out (sorry, EV enthusiasts).
The bottom line is this: Apple’s ecosystem is a BIG deal.
Look at Amazon.com Inc. (AMZN) — from the moment the company went public on May 15, 1997, to the moment just before it launched its App Store app on Dec. 3, 2008, its stock was up around 268%. But the gains that came after Amazon launched its app on Apple’s App Store are truly staggering.
If you bought AMZN stock on Dec. 3, 2008, you could’ve made more than 6,300% by December 2020. So, 268% versus nearly 7,000% over roughly the same time frame. This is only possible because Amazon hitched its wagon to Apple’s ecosystem.
Imagine how successful Facebook or Instagram would have been if you had to sit at a desktop to log in every time? You’d never use it.
Imagine if you had to be at your laptop every time you wanted to watch Netflix? E-commerce, social media, and the streaming revolution would not have been as ubiquitous today if not for Apple’s ecosystem bringing it to the masses.
Now, consider the implications of Apple’s pivot to AI. This is not a mere shift. It’s a seismic transformation. Apple’s ecosystem is poised to become the crucible where next-generation AI technologies are forged and perfected.
The integration of advanced AI tools into Apple’s already robust ecosystem will create a synergistic effect, amplifying the capabilities of both the hardware and software.
Apple’s track record of revolutionizing industries is unparalleled. The iPhone redefined mobile communication, the App Store democratized software distribution, and now, with AI, Apple is set to redefine the future of technology. The company’s commitment to privacy and security will ensure that its AI tools are not only powerful but also trustworthy. This will be a game-changer in an era where data privacy concerns are at an all-time high.
Moreover, Apple’s vast user base provides a treasure trove of data that could be harnessed to train and refine AI models. This data, combined with Apple’s expertise in hardware and software integration, will enable the creation of AI systems that are not just intelligent but also seamlessly integrated into the daily lives of users.
Imagine AI-driven personal assistants that anticipate your needs, smart home devices that adapt to your lifestyle, and health monitoring systems that provide real-time insights and recommendations. The possibilities are endless.
In conclusion, Apple’s strategic pivot to AI is a bold move that underscores its vision for the future. By leveraging its ecosystem, Apple is uniquely positioned to lead the AI Revolution.
This is not just about catching up with competitors… it’s about setting a new standard and reshaping the technological landscape.
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