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Apple Forges a Distinct Path in the AI Race

Hello, Reader.

You can’t spell Apple Inc. (AAPL) without AI.

At the company’s Worldwide Developers Conference (WWDC) event this week, the tech giant’s core announcement (pun intended) was its highly anticipated AI system, Apple Intelligence.

The system, according to Apple, will build generative AI “into your iPhone, iPad, and Mac to help you write, express yourself, and get things done effortlessly.”

Investors were ripe with excitement. Following the announcement, Apple surged on Wednesday to briefly become the world’s most valuable company, overtaking Microsoft Inc. ( MSFT)… and did so again on Thursday (though MSFT is back to No. 1 as of this writing).

The company is now what I like to call an AI distributor… and a major one at that.

That said… though it has a homefield advantage in iPhones and other iOS devices, Apple Intelligence won’t likely be too disruptive to competitors like Gemini from Alphabet Inc. (GOOGL) or Meta AI from Meta Platforms Inc. ( META).

So, in today’s Smart Money , let’s bite into what Apple Intelligence has to offer.

And I’ll share what Apple’s AI moves could mean for the rest of the tech sector… and what that means for your investments.

Let’s jump in…

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Apple Intelligence Unveiled

Apple Intelligence is bringing a world of change to Apple’s products.

The most noticeable change will be an enhanced Siri experience. Apple promises its original voice assistant will feel more natural and responsive, addressing a long-standing challenge for the company.

Siri will now exhibit more onscreen awareness. For example, when asked, it will present a user with a specific photo that they’re looking for – and even move it to third-party apps if desired. Siri can also more easily check real-time flight tracking data and determine the optimal time to get going. Additionally, the voice assistant will be more context-aware, capable of answering questions about various features and settings.

Apple isn’t making these improvements alone. Through a partnership with OpenAI, users can now pose questions to ChatGPT through Siri, rather than relying solely on Apple’s own models. Apple is not paying OpenAI for the use of ChatGPT… but is providing Sam Altman’s company access to millions of new users.

This is not Apple’s first AI partnership. One of the company’s earliest forays into AI was with Unity Software Inc. (U) to create apps for Vision Pro, the virtual reality headset that made its debut earlier this year. While not yet the usual Apple blockbuster success, Vision Pro introduced “spatial computing,” which uses artificial intelligence as a critical building block – and has applications far beyond the world of gaming.

We’ll stay tuned to see if Apple can get consumers to buy their VR headset.

Also in the future, Apple will likely partner with Google’s Gemini AI model, based on comments about support for additional AI models. Google has a strong foundation in AI, with a range of popular apps and services that provide a wealth of data to power its AI capabilities. So, this partnership could offer huge AI opportunities to both companies.

What This Means for the Tech Sector

Beyond Siri, Apple Intelligence also powers Apple Rewrite, a new writing tool that can improve a user’s writing, produce summaries, create outlines… and impact competitors.

While Apple isn’t positioning itself in direct competition with major AI distributors like Microsoft, Alphabet, and Meta – yet –AI writing companies like Grammarly should be worried.

With Apple’s service officially entering Grammarly’s territory, they may end up going head to head. Some factors still favor Grammarly, especially the fact that Rewrite is only available on iOS devices. But smaller AI players will undoubtedly face challenges in keeping up with the likes of Apple as they forge ahead in the AI race.

Regards,

P.S. As the leaders of the first phase of the AI boom are preparing to pass the baton to the leaders of the next, the world’s wealthiest are getting ready for what’s being dubbed “The Great Cash-Out.”

You don’t want to be caught unprepared. Check out this video from me for all the details.

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SATURDAY ROUND UP

Editor’s Note: Next Wednesday the markets are closed in observance of Juneteenth. Our offices will also be closed that day.

[Weekend Roundup] An Investing Lesson From Billy Ocean

Hey there, Fellow Navigator.

At risk of seriously dating myself here…

It was the winter of 1985. I was 8 years old. Probably way too young to be watching a PG-13 movie… but parents didn’t give a damn back then.

So when The Jewel of the Nile was released, I lined up to watch it.

Do you remember it?

It starred Kathleen Turner and Michael Douglas. And it featured the legendary Billy Ocean song “When the Going Gets Tough, the Tough Get Going.”

That song springs into my mind often these days (and by association I remember the movie).

We’re living in an Age of Chaos… the globe is on the brink of war… the once great United States of America is committing hara-kiri with its very own debt blade… investors cheer bad news and jeer at good news…

But is it really as bad as all that?

Well…

As our Freeport Society friend Louis Navellier shared with you here not too long ago, it’s time to prepare.

When he wrote to you last, he talked about NATO allies bickering over aid to Ukraine… the Biden administration bickering with Israel… and China wielding increasing influence in Africa, South America, and the Caribbean…

Gang violence in Haiti, which the U.S. State Department handled shockingly badly…

Israeli Prime Minister Benjamin Netanyahu rebuffing President Joe Biden’s pleas to call off a ground assault on Rafah, making it “supremely clear” that Israel is determined to complete the elimination of the battalions there…

Cuba teetering on the brink of collapse as power blackouts and food shortages cause citizens to take to the streets and protest in five cities.

And so much more has happened since then.

Donald Trump is a convicted felon. So is President Joe Biden’s son, Hunter Biden.

The U.S. debt continues to balloon unchecked.

French and South African elections have yielded shocking results.

I could go on for hours (I won’t). But suffice it to say it’s a mess out there.

And with every news report sharing the latest expression of the chaos, I hear…

When the going gets tough,
The tough get going.
When the going gets rough,
The tough get ready!

A later verse goes…

When the going gets rough,
The tough get rough!

As free thinkers, as people determined to keep their independence when all around us society devolves into a dystopian 1984 nightmare (as George Orwell so terrifyingly portrayed in his infamous novel)…

We must be tough.

We must be ready.

And we must be rough.

That’s why, here at The Freeport Society, we strive to find investment opportunities that can help our fellow members survive and thrive during this Age of Chaos.

It’s why we partner with top fintech firms to develop quant-driven trading strategies that help you turn the old, unreliable ways on their head.

On Wednesday, Charles released a new video in which he shared one of those new strategies. It’s called the C.H.A.O.S. Cash System and it’s designed to make growing your wealth that much easier.

Do yourself a favor. Take some time today to watch that videoand learn what the C.H.A.O.S. Cash System is about… how it works… and how you can start using it immediately.

After that, come back here to review what we talked about this week in The Freeport Navigator …

Looking Ahead

Trading will be cut short next week with markets – and our offices here at The Freeport Society – closed on Wednesday for the Juneteenth holiday.

But even with that short break, expect some shaking up with the latest S&P flash Purchasing Managers’ Index (PMI) readings.

We’ll get an early look at how the services and manufacturing sectors are holding up, if it gives us any hope for the overall economy in the midst of this chaos.

Importantly, it’ll also give small-business owners the chance to gauge their own performance.

Next week will also give housing updates the spotlight. We’re not holding our breath for any signs of improvement… but time will tell.

And we get to see how healthy the consumer is with retail sales data out on Tuesday.

Of course, there’s no doubt that we’ll also see more clownery from our government… more debt added to the mountain crushing us… and more evidence of this Age of Chaos.

Through it all, we’ll guide and protect you. Keep reading.

To life, liberty, and the pursuit of wealth,