Microsoft Outpaces Apple, Introduces 'Designer' AI Image Generation Tool For The iPhone

Microsoft Corporation MSFT has launched its AI image generation tool, Microsoft Designer, as a free iOS app, outpacing Apple Inc. AAPL as the world waits for the iPhone maker to introduce Apple Intelligence.

What Happened: Microsoft Designer is now available to all users across multiple platforms, including iOS, Android, and Windows. It was in preview for nearly a year and tested on a website using Microsoft Edge and other browsers.

“A blank canvas no longer has to be intimidating—just describe what you want to see, and Designer can create it for you. And if you're not sure what that is, Designer can help you get started,” the company said while launching.

The app enables users to generate images using text prompts and provides templates for creating social media images and greeting cards. It also includes an avatar creation tool and options to edit existing images, including background and object removal or alteration.

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Although the app is free, it restricts users to 15 “boosts” per day, which are used when AI-based changes are made to images. Users can upgrade to a $20 Copilot Pro subscription for 100 boosts per day.

Why It Matters: The launch of Microsoft Designer comes ahead of the expected release of Apple Intelligence, Apple’s own generative AI image tool, slated for release this fall.

Earlier this year, Microsoft expressed concerns over an agreement between OpenAI and Apple, fearing it could impact Microsoft’s product ambitions. In July, Microsoft decided to relinquish its board observer position at OpenAI.

Meanwhile, Wedbush Securities' Daniel Ives predicted a “monumental boost” to Microsoft's valuation due to the AI revolution, potentially adding a whopping $1 trillion to its market cap.

Photo courtesy: Shutterstock

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