Tesla investor Ross Gerber on Monday criticized Apple Inc.’s AAPL reported deal with Google GOOGL GOOG.
What Happened: Gerber said the deal is a “sad admission” of missed opportunities, while commenting on the robust performance of tech stocks in the early trading hours.
“Stocks pop on AI dreams of a massive upgrade in technology. Google and Nvidia on fire this morning. Apple using Google AI (which still sucks) on iPhones in a sad admission they missed another boat,” Gerber wrote.
Apple is reportedly in discussions with Google to license Gemini, a set of generative AI models, to power new iPhone software features. This potential deal would build on the existing search partnership between the two tech giants.
Why It Matters: The potential deal has been a topic of interest in the tech industry. Deepwater Asset Management’s managing partner Gene Munster believes that this deal could position Apple as a leader in personalized AI.
On the other hand, billionaire investor Chamath Palihapitiya has suggested that Apple’s move to license generative AI models from Google and OpenAI could indicate a shift in the company’s approach to AI.
Wedbush’s Dan Ives has also highlighted the potential partnership between Apple and Google as a crucial element in Apple's AI strategy, which could significantly enhance the company's AI capabilities.
Price Action: Despite pessimism from Gerber, Apple stock closed 0.64% higher at $173.72, according to data from Benzinga Pro.
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