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Apple stock slumps as iPhone maker reveals OpenAI tie-up

Apple unveiled AI features called “Apple Intelligence” and a partnership with ChatGPT maker OpenAI across its devices on Monday as the Big Tech giant seeks to convince Wall Street it is keeping pace in the race to develop the burgeoning technology.

OpenAI boss Sam Altman was seated in the VIP section during Apple’s Worldwide Developer Conference, which kicked off with a heavily stylized intro in which Apple executives were seen “skydiving” down to the company’s headquarters.

As part of a long-teased partnership with OpenAI, ChatGPT will be integrated into Apple’s voice assistant Siri for free.

Apple CEO Tim Cook called the AI integration a “game changer” and the “next big step” for the company.

The features, however, only will be available on Apple’s most expensive iPhone 15 Pro model, as well as Macs and iPads equipped with its in-house computer chips.

Despite the hype, Apple shares sank nearly 2% as Cook and other executives detailed the plans. Meanwhile, shares of Google turned positive as the presentation progressed.

Apple CEO Tim Cook described the AI integrations as a “game changer” for the company. Getty Images

The AI software’s capabilities include prioritizing notifications based on importance, writing tools that can proofread and summarize text and the creation of AI-generated images within text conversations, or pulling up specific pictures or files based on a user prompt.

Siri will also be capable of carrying out tasks in specific apps based on the user’s voice prompts or answering questions about how device features work.

Cook insisted Apple Intelligence was “built with privacy from the ground up.” The company said its AI system does not collect personal data from users,

OpenAI CEO Sam Altman is pictured. Apple will add ChatGPT to its Siri voice assistant. AFP via Getty Images

The event was considered a critical moment for Apple, which has been under some pressure since the start of the year due to broadening antitrust scrutiny and questions from investors about its slow entry into AI.

Wedbush analyst Daniel Ives described the AI-centric presentation as “the biggest event in over a decade” for Apple.

Apple also detailed upgrades included in the latest iPhone software, iOS 18.

New features include the ability to personalize app placements and icon colors on the home screen.

Users can “lock” specific apps to ensure that strangers can’t access them without “Face ID” or log-in credentials, even if they are past the home lock screen.

On the messages app, users will be able to react to texts with more emojis and animated effects via an expanded “Tapbacks” feature, as well as send texts on a delay via a “send later” feature.

OpenAI boss Sam Altman was in attendance at the Apple event. REUTERS

Later this year, Apple plans to roll out updates for its Mail app that organize emails by various categories, including transactions, social updates and shopping promotions.

On the company’s streaming service Apple TV+, viewers will gain the ability to highlight specific actors or songs from shows as they play.

Elsewhere, iPad users will get access to a long-awaited “Calculator” app specifically for the tablets, as well as new home screen personalization features.

Apple detailed various software upgrades for iPhones, Macs and iPads. REUTERS

The tech giant also announced updates for its Vision Pro mixed-reality headset. The company is expanding its availability to other countries, with pre-orders set to begin in China on June 13 and in the UK, Australia, Canada, France and Germany beginning June 28.

Apple unveiled upgraded “VisionOS 2” operating system for the headsets and said there are now more than 2,000 apps developed specifically for the device.

Executives touted the Vision Pro’s use on trips by noting that its “Travel Mode” is now compatible with train trips as well as well flights.

The company’s computer operating system, macOS, will get iPhone notifications for Macs and “Phone Mirroring” for Mac displays, as well as a Passwords app to securely store log-in information for a variety of apps.

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