Is OpenAI or Anthropic Better for Powering Siri?
While the rest of the Magnificent Seven firms invest in artificial intelligence, Apple (AAPL) is cautious. The firm spent or committed over $200 billion in the last two years to buy back its shares. It is not building an AI in-house.
On June 30, Bloomberg reported that Apple is weighing the benefits of powering Siri with either Anthropic or OpenAI. Microsoft (MSFT) is a big backer of OpenAI, using it to power CoPilot.
Apple has two startups training their AI models under Apple’s cloud infrastructure. In either scenario, the initiative is a setback for the firm. Apple is relying on third-party development, losing control of its functionality.
Buy Perplexity
Apple could take control of the Siri-AI integration by acquiring Perplexity. This AI has a current valuation of $14 billion, based on the most recent funding round. However, Meta Platforms (META) reportedly wanted to buy the firm. Fortunately, the social networking firm spent heavily on other AI acquisitions. This decreases the likelihood of Apple entering a bidding war for Perplexity.
Risks
Despite Siri’s shortcomings since its release in February 2010, Apple fans are not picky. The company does not need an AI solution that works as well as OpenAI, Anthropic, or Perplexity. However, AI might become mainstream, putting Apple at a disadvantage.
With the AI angle considered, Apple stock earns a neutral rating.
