Proactive Investors - Apple Inc (NASDAQ:AAPL, ETR:APC) looks set to open its doors to a suite of new ‘exciting’ possibilities through a partnership with OpenAI, Bank of America (NYSE:BAC) analysts say.
“Real-time language translation, narration, ability to tutor,” were among a “plethora” of products that the bank noted may be made possible through such a deal.
“The ability for developers to create apps that tap into the potential of AI is exciting,” the bank added in a note.
According to reports, Apple’s deal with ChatGPT-maker OpenAI is all but done and will likely be formally revealed in June.
The resultant momentum in services and other benefits from adopting generative AI in its products led Bank of America to reiterate a ‘buy’ rating for Apple.
Referencing OpenAI’s spring update, analysts added demonstrations “captured how AI can drive incredible amounts of productivity”.
“Much of the demo used a 'hardwired' iPhone to lower latency of real-time interaction,” the bank noted.
How the partnership plays out remains to be seen though, according to the bank, with OpenAI likely benefitting from subscriptions, advertising or developer fees.
On Apple’s side, higher processing capability will likely be needed on the latest iPhone 16, potentially requiring upgrades, though analysts noted tapping into the cloud may be “best”.
“Siri currently uses some processing on device but also offloads queries to Apple servers,” the bank highlighted.
A share price target of US$230 was also offered for Apple, against Monday’s close of US$186.3.