Hello everyone.

I underestimated the amount of notes that I have for Apple Intelligence. In addition, Apple’s Platforms State of the Union, aimed at developers, offered an interesting look at Apple Intelligence. There are then questions coming in from members regarding Apple’s stock price move (+10% in two days).

Here’s the game plan:

Today’s focus will go over the Apple Intelligence / ChatGPT integration. While Apple didn’t dedicate much stage time to the news, there are many implications to consider.
For tomorrow, there is value found in spending time on the details regarding how Apple Intelligence functions. We will also talk about some of the Apple Intelligence features tomorrow. We will then address AAPL price action.
We will get to everything else from the WWDC keynote on Monday. This is not due to those items lacking interest. Instead, it’s just tough to reach everything in short order. There were also a few observations from Apple Park.

Let’s begin.

Breaking Down the ChatGPT / Apple Intelligence Integration

Heading into the WWDC keynote, reports had pegged Apple as announcing an agreement with OpenAI. None of the reports contained many details though. Bloomberg said the deal would amount to Apple offering a popular chatbot. Others said OpenAI would play a central role in Apple’s AI announcements.

Just two minutes off the 39 minutes given to Apple Intelligence went to ChatGPT integration news. OpenAI CEO Sam Altman was in the viewing audience for the taped presentation at Apple Park. He did not make an appearance on the digital state.

Apple framed third-party model integration with Apple Intelligence as a way to offer Apple users external models that have broad world knowledge or domain expertise. Apple referred to ChatGPT as “the best of these [external models], the pioneer and market leader..."

The ChatGPT / Apple Intelligence Integration involves two delivery mechanisms:

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