Stock Market Unimpressed by Apple Intelligence, Musk Hates It
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Stock Market Unimpressed by Apple Intelligence, Musk Hates It

Apple introduced a suite of AI features called "Apple Intelligence" at WWDC 2024, including enhancements to Siri, custom AI-generated content, and improved image search capabilities.
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Apple Inc. (NASDAQ: AAPL) unveiled a suite of artificial intelligence features dubbed “Apple Intelligence” at its Worldwide Developers Conference (WWDC) on June 10, 2024. The new capabilities, set to roll out this fall in iOS 18, iPadOS 18, and macOS Sequoia, will be available exclusively on newer devices.

However, the stock market did not seem very impressed with Apple’s AI foray, with the stock dipping after the event and into premarket trading today. One of the notable critics of the new features is Elon Musk, who took to X to complain about and mock them in a series of posts.

Apple Announces AI Features at WWDC 2024

The tech giant’s AI enhancements include a more conversational Siri that can access OpenAI’s ChatGPT when needed, custom AI-generated “Genmoji,” improved image search in the Photos app, and an “Image Playground” for generating images from prompts.

The AI system will also be capable of carrying out actions between apps, managing notifications, auto-writing content, and summarizing text.

Apple emphasized its commitment to privacy, stating that many AI features will work on-device, while more complex requests will be handled in its “Private Cloud Compute” using Apple Silicon servers. The company also pledged to allow independent experts to inspect server code to verify privacy.

Market Reaction and Musk’s Criticism of Apple Intelligence

Despite the announcement, Apple’s stock price fell 1.91% to $193.12 at the previous close, with pre-market trading at 5:57 AM EDT showing a further 0.68% decline to $191.80.

The company’s market cap stands at $2.961 trillion, with a 52-week price range of $160.11 – $217.06. Analysts have set an average price target of $205.04, with a range of $164 – $275. Apple’s financials show a 26.31% profit margin, $381.62B revenue (ttm), and $6.43 EPS (ttm).

Tesla CEO Elon Musk strongly criticized Apple’s AI integration, threatening to ban Apple devices at his companies if they incorporate OpenAI’s ChatGPT at the operating system level.

Musk called the integration an “unacceptable security violation” and accused Apple of selling users “down the river” by handing data to OpenAI without knowing how it will be used.

He also questioned Apple’s ability to ensure user security and privacy while claiming the company is not “smart enough to make their own AI.”

Do you think Apple’s AI approach will be successful over other firms? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.