Investors Are More Interested In Apple’s Plan On Launching A ChatGPT Competitor Rather Than An AR Headset, Claims Analyst

Apple ChatGPT competitor

ChatGPT’s rise in popularity has caused a wave of fear amongst technology giants, with Google being the latest entrant in this category to launch its own competitor, and others are expected to follow suit. Apple, on the other hand, is expected to preview its AR headset at its WWDC 2023 tomorrow, but according to the latest report, investors believe that AI carries more importance than a head-mounted wearable.

AR headset may not contribute substantially to Apple’s revenue as compared to AI in the next two years, according to report

With Apple estimated to ship only 100,000 units this year, the prospect of the company ‘banking’ from its AR headset launch appears to be slim. Ming-Chi Kuo, a popular TF International Securities analyst, has posted on Twitter that investors are more interested in Apple’s efforts to bring about a ChatGPT competitor than funneling resources towards a mixed-reality headset.

Kuo states that for the next couple of years, Apple’s AR headset will not drive substantial revenue for the company, but it is not like the technology giant only has a single product that will either make or break its business. At this stage, even Apple probably knows that with the AR headset’s rumored price of $3,000, the device may not garner sufficient popularity, and it will be up to future and more affordable models to drive that revenue and attract a larger customer base.

Despite some labeling the AR headset as a revolutionary product, it will not bring in sufficient revenue for Apple, at least for now / Image Credits - @darvikpatel

On the subject of developing a ChatGPT competitor, even if Apple achieves what its investors are hoping, the report does not mention how this Large Language Model (LLM) will make money for those investors and the company. OpenAI, the company behind ChatGPT, reportedly suffered losses of $540 million for 2022. These costs are due to the massive computing power required to run the LLM, and in an interview, OpenAI CEO admitted that they are not making any money with ChatGPT and do not have any foreseeable plans to.

Apple’s AR headset can still positively impact the 3D computer graphics industry, according to Kuo and there is a possibility that after the device’s launch, it will help Meta’s business in the future. In short, the headset might not be the ‘home run’ Apple was looking for, but this market is ripe for growth, so perhaps we will see a different reception in a few years.

Written by Omar Sohail


Refference- https://wccftech.com

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