Apple Quietly Unveils New AI Model ReALM That Outperforms OpenAI's GPT-4 Despite Being 'Much Lighter And Faster'

Apple Inc. AAPL has released a new artificial intelligence (AI) model that surpasses Microsoft Corp.-backed MSFT OpenAI's GPT-4 in parsing contextual data, a significant development ahead of the company’s AI initiatives launch in June.

What Happened: Apple’s AI research has resulted in a model that can convert any given context into text, making it easier for Large Language Models (LLMs) to parse. Apple could leverage this to enhance Siri, its virtual assistant.

The AI research paper, titled ReALM (Reference Resolution As Language Modeling) details a method for resolving vague language inputs, such as “this” or “that,” using LLMs.

Apple’s approach involves converting all contextual information into text, which allows for more efficient parsing.

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The smallest ReALM models performed similarly to GPT-4, but with fewer parameters, making them better suited for on-device use. Increasing the parameters in ReALM led to a significant improvement in performance over GPT-4.

One reason for this performance boost is GPT-4’s reliance on image parsing to understand on-screen information. Apple’s method, which converts images into text, eliminates the need for advanced image recognition parameters, making the model smaller and more efficient.

See Also: Happy 48, Apple: If You Invested $1000 In Apple When It Went Public, Here’s How Much You’d Have

Why It Matters: Apple is gearing up to unveil its comprehensive AI strategy at WWDC 2024. Rumors suggest that the company will utilize smaller on-device models to ensure privacy and security, while also licensing LLMs from other companies for off-device processing.

The upcoming iOS 18 update is also expected to bring major AI upgrades.

Apple has been making strategic moves to enhance its AI capabilities, including the acquisition of Canadian AI startup DarwinAI and discussions with Google to license Google’s Gemini AI models for future iPhones.

Analysts predict that Apple’s AI initiatives could be a $33 billion-a-year opportunity.

The upcoming WWDC is expected to mark the biggest change in Apple’s operating system design since the 1980s, with AI being a key focus.

Price Action: Apple’s stock closed 0.45% lower on Monday at $170.03, according to Benzinga Pro.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo courtesy: Flickr