Apple could LOSE its title as the world’s most valuable company to Google, Microsoft or Amazon in the cut-throat race for Artificial Intelligence

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

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

But the company saw $200 billion wiped from its share price last week due to growing hostility from China, and faces allegations it could be “doomed” by its failure to develop a internal version of the technology that powers the AI ​​revolution.

“It’s difficult to pick losers today because it’s very early. However, we think the big winners are arms dealers who host extended language models (LLMs), said analyst Laura Martin of Needham.

“Not only do their LLMs have the lowest cost structures and first-mover advantages, but their average lifetime value per Cloud customer is poised to skyrocket due to the inflexibility of applications built on their LLMs.

“Not only do their LLMs have the lowest cost structures and first-mover advantages, but their average lifetime value per Cloud customer is poised to skyrocket due to the inflexibility of applications built on their LLMs.

Microsoft, Amazon and Alphabet, Google’s parent company, have spent billions of dollars on LLMs that crawl and populate millions of Internet pages through linguistic algorithms to produce answers to questions posed by human users.

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

And the initiates said Information that its prototype, known as Ajax GPT, would be more powerful than OpenAI’s GPT3.5.

But Needham warns that companies without their own LLM are already at risk of being priced out of the market as the uses of AI expand.

“Generative AI will redefine the basis of competition for media and internet companies,” Martin told marketwatch.com.

Apple has been the world’s most valuable company for most of the past 12 years, but regained only a small portion of the value lost last week following reports that the Chinese government was cracking down on iPhone usage among government employees.

China’s iPhone crackdown comes as tensions rise between Washington and Beijing and shows that even Apple’s long-standing good relationship with the Chinese government cannot protect it from geopolitical headwinds.

“Beijing is seeking to reduce its dependence on American technology, but this (ban) poses a significant obstacle for Apple, as China is its largest international market and accounts for around 20 percent of its revenue,” said Victoria Scholar, Head of Investments at Apple. Interactive Investor, a UK investment platform.

Chinese tech company Huawei also spooked Apple and the U.S. government earlier this month with the launch of its Mate X5 and Mate 60 Pro+ containing the advanced chips Washington hoped its sanctions would prevent China from developing.

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

2.4 billion iPhones have been sold worldwide since their launch in 2007, but will it simply be a platform for other companies’ artificial intelligence?

Microsoft, which developed the Gorilla LLM, spent years in the late 1990s and early 2000s as the world’s most valuable company and briefly regained the top spot in 2021.

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

But Needham says the battle for top spot will be played out over the next ten years, and many analysts insist Apple will remain a tech titan with a “golden installed base of two billion consumers.”

“Apple is the heart and lungs of Cupertino, and it’s 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 says its ChatGPT model, trained using a machine learning technique called Reinforcement Learning from Human Feedback (RLHF), can simulate dialogue, answer follow-up questions, admit mistakes, challenge incorrect premises and reject inappropriate requests.

Initial development involved human AI trainers providing the model with conversations in which they played on both sides: the user and an AI assistant. The version of the bot available for public testing attempts to understand questions users ask and responds with detailed answers resembling text written by a human in a conversational format.

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

The robot can answer a wide range of questions while imitating human speaking styles.

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

As with many AI-driven innovations, ChatGPT is not without concerns. OpenAI acknowledged the tool’s tendency to respond with “plausible but incorrect or absurd answers”, a problem it considers difficult to solve.

AI technology can also perpetuate societal biases such as those related to race, gender, and culture. Tech giants including Google and Alphabet Inc’s Amazon.com have already acknowledged that some of their projects experimenting with AI were “ethically risky” and had limitations. In several companies, humans have had to step in and repair the ravages of AI.

Despite these concerns, AI research remains attractive. Venture capital investments in AI development and operation companies increased last year to nearly $13 billion, and $6 billion was injected through October this year, according to data from PitchBook, a Seattle company that tracks funding.