Apple Inc and OpenAI appear to be on the brink of unveiling a partnership that would open up a score of opportunities for each.
“In essence, it changes the game having a tight partnership with OpenAI,” Wedbush said in a note, following media reports that a deal is all but done.
“For Microsoft [backed] OpenAI, it’s a smart strategic move to tie themselves in with the biggest consumer installed base in the world looking forward.”
Exclusive features which can be built upon are set to be rolled out through the deal, alongside on-device and cloud-powered large language models, Wedbush noted.
Apple will also likely power AI models through its own high-end chips, the bank added, with the partnership expected to be formally unveiled at June’s Worldwide Developers Conference.
According to Wedbush, exclusive OpenAI-powered features will likely be rolled out on Apple’s iPhone 16 and latest iOS 18 software.
This could include “next-level Siri technology” designed to perform complex tasks, which may ultimately be offered through subscriptions.
“Having OpenAI chatbox embedded in iPhone 16 will also open up avenues of growth and the all-important developers to flock to the Apple ecosystem,” Wedbush continued.
“We believe as more apps and tasks are able to be completed with generative AI, Apple stands to monetize a significant revenue base over the coming years with its massive and unmatched 2.2 billion installed base.”
Though more information is expected over the coming weeks, analysts said a deal between Apple and OpenAI would be more significant than a rumoured agreement with Google.
An ‘outperform’ rating was held by Wedbush, alongside a US$250 share price target, against Friday’s close of US$184.32.