Posted 3/19/2024, 9:40:00 PM
Apple Bets Big on AI Despite Near-Term Margin Pressures
- Apple's push into AI could pressure its historically high profit margins in the near-term as significant investments are required
- Apple is exploring licensing AI technologies from Google and OpenAI and developing its own models like Apple GPT
- The shift towards AI became Apple's growth priority after it scrapped plans for its electric vehicle project
- Apple sees artificial general intelligence having a profound long-term impact across its products
- An analyst predicts Apple's profit margins dipping to 24% in the next couple years from recent levels around 25%, due to AI investments