Apple nasdaq Aapl Stock Slips As Musk Fires Warning Shots over Openai Integration

Apple (NASDAQ: AAPL) Stock Slips as Musk Fires Warning Shots Over OpenAI Integration

Apple (NASDAQ: AAPL) stock fell during intraday trading Monday after Elon Musk threatened to ban Apple devices from Tesla and SpaceX over OpenAI integration.

Elon Musk, CEO of Tesla (NASDAQ: TSLA) and SpaceX, has issued a stark warning to Apple. He threatened to ban Apple (NASDAQ: AAPL) devices from his companies if the tech giant integrated OpenAI technology at the operating system (OS) level. Musk labeled such integration as an “unacceptable security violation.”

In a series of tweets on Monday, Musk stated that if Apple proceeds with integrating OpenAI at the OS level, devices from the tech giant would be prohibited within his companies, including SpaceX. Musk went as far as to propose implementing stringent security measures, suggesting that visitors would be required to check their Apple devices at the door, where they would be stored in Faraday cages to prevent potential security breaches.

This stance from Musk follows Apple’s recent partnership with OpenAI, backed by Microsoft (NASDAQ: MSFT), to integrate ChatGPT into iOS 18, iPadOS 18, and macOS 15 Sequoia. Apple unveiled the integration of this AI feature at the Apple Worldwide Developers Conference (WWDC) on Monday. This AI integration is a significant part of Apple’s broader AI strategy, which includes utilizing the technology of OpenAI to provide AI writing summaries across its operating systems.

In addition to the OpenAI integration, Apple introduced its own AI-powered personal intelligence features, known as “Apple Intelligence.” Apple has deeply integrated these features within the operating systems of iPhones, iPads, and Macs. This marks the first time Apple has showcased its generative AI efforts, bringing advanced features to its devices.

Apple (NASDAQ: AAPL) Stock Reaction

On Monday, AAPL stock dropped 1.91%, closing at $193.12, marking a 0.47% decrease for the week. The trading volume was 97,262,080 shares, significantly higher than the average daily volume of 60.82 million.