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Apple surpasses Microsoft as world's most valuable company after unveiling AI plans

Jun 12, 2024 - cnbc.com
Apple has overtaken Microsoft to become the world's most valuable company, with a market cap of $3.3 trillion, following its announcement of a push into artificial intelligence (AI) at its developers conference. The company's shares surged over 7% to a record high after revealing plans to integrate generative AI technology across its apps and devices, including writing-assistance technology and AI-generated emojis. Analysts from Morgan Stanley, Evercore, and Bank of America predict that Apple's new AI features, dubbed Apple Intelligence, will drive consumers to purchase new iPhones.

Despite Microsoft being edged out in market cap, it is expected to benefit from Apple's AI ambitions. Apple announced it would include OpenAI's large-language models as a feature for its users, with more models to be added over time. Microsoft, a significant investor in OpenAI, has seen recent growth in its Azure cloud services due to the widespread adoption of OpenAI's models.

Key takeaways:

  • Apple has surpassed Microsoft to become the most valuable company in the world, with a market cap of $3.3 trillion.
  • The company's shares surged after it announced plans to integrate artificial intelligence across its devices during its developers conference.
  • Apple's new AI features, called Apple Intelligence, are expected to drive users to buy new iPhones, according to analysts from Morgan Stanley, Evercore and Bank of America.
  • Microsoft is also likely to benefit from Apple's AI ambitions as the iPhone maker will include OpenAI's large-language models, in which Microsoft is one of the largest investors.
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