Apple Just Declared War On OpenAI

Apple Just Declared War On OpenAI – Prof G Markets

Market views

Bullish

META— Meta's stock surged 15% last week (6% Friday alone) on launch of new AI model Muse Spark 1.1 that's 25% cheaper than competitors like OpenAI, shifting market perception from AI loser to potential winner. Additional catalyst from rumors of licensing excess compute for high margins.

Bearish

OPENAI— OpenAI faces existential legal threat from Apple lawsuit alleging trade secret theft for hardware business, described as 'rotten to its core.' Company systematically alienates every partner (Apple, Microsoft, Elon Musk), creating business risk ahead of anticipated IPO. Hardware effort may need to unwind completely if Apple wins.
AAPL— Apple faces competitive threat from OpenAI's bidirectional voice models that could disrupt Siri's conversational AI business. OpenAI has 1 billion ChatGPT users and is developing technology that 'could threaten its business' and 'cuts off Apple's growth.'
ENERGY— Oil prices face upward pressure from reinstated Strait of Hormuz blockade with new 20% cargo fee, potentially pushing Brent crude from $83 to $100/barrel. This exacerbates inflation already at 4.2%, likely forcing higher interest rates and lower stock prices.
SPACE— SpaceX shares dropped another 4%, nearing IPO price of $135 per share, indicating significant deterioration from previous valuations.

Not investment advice.