Apple Reportedly Buys DarwinAI in iPhone Maker’s Push into AI Race
Apple shares edged 1% higher Thursday amid reports that the company bought DarwinAI, a Canadian artificial intelligence (AI) startup, in what could be an important step in the iPhone maker establishing its place in the AI boom. The company acquired DarwinAI in early 2024, absorbing dozens of the AI startup’s employees, Bloomberg reported.
Apple’s Move into AI
Compared to some of its big tech peers like Microsoft, Google parent Alphabet, and Meta, the iPhone maker has lagged in publicly integrating AI tech into its products and services. However, with the acquisition of DarwinAI, Apple seems to be making a significant move towards catching up with its competitors in the AI race.
On the company’s latest earnings call, CEO Tim Cook hinted at the developments in Apple’s AI projects. Cook mentioned that Apple has “some things that we’re incredibly excited about, that we’ll be talking about later this year.” He emphasized that there is a lot of internal work happening at Apple related to AI but refrained from providing specific details to avoid getting ahead of themselves. Cook did express optimism about the potential for Apple in the GenAI and AI space.
Analysts’ Perspective
Bank of America analysts have given Apple a “buy” rating, citing expectations of an accelerated iPhone upgrade cycle in 2025 driven by AI-capable devices. This forecast indicates that Apple’s foray into AI could have significant implications for its product offerings and market positioning in the coming years.
Despite the positive news surrounding Apple’s acquisition of DarwinAI and its potential AI-related developments, Apple’s stock has experienced fluctuations. Apple shares finished 1% higher at $173 on Thursday, but the stock has fallen more than 6% since the beginning of 2024. However, over the past year, Apple’s stock has gained 13%, reflecting investor confidence in the company’s long-term prospects.
Conclusion
Apple’s reported purchase of DarwinAI signals a strategic move by the tech giant to strengthen its position in the rapidly evolving AI landscape. With competition intensifying among major tech companies to leverage AI capabilities in their products and services, Apple’s entry into this space could have far-reaching implications for its future growth and innovation.
As Apple continues to explore opportunities in AI and prepares to make related announcements later in the year, investors and industry observers will be closely monitoring the company’s progress in this space. With the potential for an accelerated iPhone upgrade cycle driven by AI technology on the horizon, Apple’s strategic investments in AI could position it favorably in the competitive tech landscape.
Overall, Apple’s acquisition of DarwinAI underscores the company’s commitment to staying at the forefront of technological advancements and harnessing the power of AI to enhance its products and services. The coming months are likely to reveal more about Apple’s AI strategy and how it plans to leverage this cutting-edge technology to drive innovation and growth.
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