In the cutthroat race for artificial intelligence, Apple could lose its title as the most valuable company in the world to Google, Microsoft or Amazon

Due to its pioneering work in the field of artificial intelligence (AI), Apple could lose its place as the most valuable company in the world to Silicon Valley rivals Amazon, Microsoft or Google.

The tech giant became the world’s first $3 trillion company earlier this year with 2.2 billion iPhones sold since 2007 and will unveil its new iPhone 15 tomorrow at its Apple Park headquarters in Cupertino, California.

But last week the company suffered a $200 billion loss in its share price amid rising hostility from China and is facing claims it may be “doomed” for failing to come up with its own version of the To develop technology that powers the AI ​​revolution.

“It’s hard to pick losers today because it’s still very early.” “However, we believe that the arms dealers running Large Language Models (LLMs) are clear winners,” said Needham analyst Laura Martin.

“Not only will their LLMs have the lowest cost structures and first-mover advantages, but their average lifetime value per cloud customer will skyrocket due to the stability of the apps built on their LLMs.”

Apple boss Tim Cook was cautious about his company’s AI development

“Not only will their LLMs have the lowest cost structures and first-mover advantages, but their average lifetime value per cloud customer will skyrocket due to the stability of the apps built on their LLMs.”

Microsoft, Amazon and Google’s parent company Alphabet have spent billions of dollars on the LLMs, which search and feed millions of pages of the Internet with speech algorithms to provide answers to questions from human users.

Apple has now reportedly increased spending on AI development to millions of dollars per day under a 16-person team led by former Google engineers.

And insiders told it The information that its prototype, known as Ajax GPT, is reportedly more powerful than OpenAI’s GPT3.5.

However, Needham warns that companies without their own LLMs are already facing being pushed out of the market by the increasing use of AI.

“Generative AI will redefine the competitive landscape for media and internet companies,” Martin told marketwatch.com.

Apple has been the world’s most valuable company for much of the past 12 years, but has regained little of the value it lost last week following reports that the Chinese government was cracking down on iPhone use by government employees.

China’s crackdown on the iPhone comes at a time when tensions are rising between Washington and Beijing, and shows that even Apple’s long-standing good relationship with the Chinese government may not protect the company from geopolitical headwinds.

“Beijing is trying to reduce its dependence on U.S. technology, but this (ban) represents a significant headwind for Apple, as China is its largest international market and accounts for about 20 percent of its sales,” said Victoria Scholar, head of investments at Interactive Investor, a British investment platform.

Chinese technology company Huawei also spooked Apple and the US government earlier this month with the launch of its Mate

The US Commerce Department said it was working to obtain more information “about the character and composition” of the Huawei chip, which may violate trade restrictions.

Since its debut in 2007, 2.4 billion iPhones have been sold worldwide, but will it just be a platform for other companies’ artificial intelligence?

Microsoft, which developed the Gorilla LLM, was the world’s most valuable company for years in the late 1990s and early 2000s and briefly took the top spot again in 2021.

Alphabet has promoted its Bard LLM on its Google search engine, while Amazon is the developer behind Alexa.

But Needham says the battle for the top spot will spread over the next decade, and many analysts insist Apple will remain a tech giant with a “golden installed base of two billion consumers.”

“Apple is the heart and lungs of Cupertino and the best consumer brand in the world,” said Wedbush analyst Dan Ives.

What is OpenAI’s ChatGPT chatbot and what is it used for?

OpenAI states that their ChatGPT model, trained using a machine learning technique called Reinforcement Learning from Human Feedback (RLHF), can simulate dialogues, answer follow-up questions, admit errors, challenge false premises, and reject inappropriate requests.

Initial development involved human AI trainers feeding the model with conversations in which they played both sides – the user and an AI assistant. The version of the bot available for public testing attempts to understand questions asked by users and responds with detailed answers that resemble human-written text in a conversational format.

A tool like ChatGPT could be used in real-world applications like digital marketing, creating online content, answering customer service queries, or, as some users have discovered, even debugging code.

The bot can answer a variety of questions while imitating human speaking styles.

A tool like ChatGPT could be used in real-world applications like digital marketing, creating online content, answering customer service queries, or, as some users have discovered, even debugging code

As with many AI-driven innovations, there are concerns about ChatGPT. OpenAI has noted the tool’s tendency to respond with “plausible-sounding but incorrect or nonsensical answers,” a problem it says is difficult to fix.

AI technology can also perpetuate societal biases such as race, gender and culture. Tech giants such as Alphabet Inc.’s Google and Amazon.com have previously acknowledged that some of their projects experimenting with AI were “ethically sensitive” and had limitations. In several companies, humans had to intervene and fix the AI ​​chaos.

Despite these concerns, AI research remains attractive. Venture capital investment in AI development and operations companies rose to nearly $13 billion last year, with $6 billion poured in through October of this year, according to data from PitchBook, a Seattle firm that tracks funding.