Apple’s recent announcement of its new approach to artificial intelligence (AI), known as Apple Intelligence, has set the stage for three major cloud computing stocks to gain significant consumer exposure. The tech giant is now venturing into on-device AI by partnering with OpenAI for its ChatGPT platform, with the AI itself running directly on Apple devices. However, the data analytics required for long-term effectiveness will be facilitated by Apple’s primary cloud service providers.
Microsoft, despite Apple’s reduced reliance on its Azure cloud computing system, remains a crucial partner for several of Apple’s key features. The partnership gains further significance due to Microsoft’s association with OpenAI, as the company’s investment allows it to collect 49% of the profits generated by OpenAI. Microsoft stands to benefit not only from revenue derived from Apple but also from the opportunity to analyze ChatGPT’s usage data to enhance the AI further. Consequently, Microsoft emerges as one of the top cloud computing stocks to consider as Apple dives deeper into AI.
Surprisingly, Alphabet, Google’s parent company, has been a major cloud service provider for Apple for nearly a decade, despite the companies’ competition in the smartphone and smartwatch markets. Google’s Google Cloud Platform and Google Search engine have supported Apple’s products, and with Apple’s shift away from Microsoft Azure, Google has become its primary cloud service provider. As Apple’s intelligence devices generate vast amounts of data, Google’s cloud computing technology is expected to play a crucial role, bolstering the company’s revenue from Apple-related services.
Amazon, once Apple’s largest cloud service customer, hosted iCloud’s features when it was launched in 2011 through Amazon Web Services (AWS). While Apple has diversified its cloud hosting across Google Cloud and Microsoft, AWS remains integral to the operation of Apple’s iCloud product line. With the introduction of Apple Intelligence and the anticipated storage demands of iCloud, Amazon is likely to witness increased revenue from Apple. Apple’s focus on design and software, rather than investing in infrastructure, coupled with AWS’s success as a cloud computing provider, positions Amazon as a strong contender in the cloud computing market.
Investors eyeing the potential of Apple’s AI revolutionizing everyday interactions should consider the lucrative opportunities presented by these cloud computing stocks. As Apple invests billions in cloud infrastructure to support millions of users relying on its AI services, Microsoft, Alphabet, and Amazon stand to benefit significantly from their partnerships with the tech giant.