Apple is reportedly developing 'Apple GPT.' It's likely ChatGPT's next big competitor.

• Apple is reportedly working on new artificial-intelligence tools, Bloomberg first reported.
• The iPhone maker created a large language model behind its conversational AI chatbot.

Apple is developing its own artificial-intelligence tools to compete with the likes of OpenAI's ChatGPT and Google's Bard, sources familiar with the matter told Bloomberg.

It likely means CEO Tim Cook is finally ready to compete head-to-head with the two leaders that have so far pulled out ahead in the new AI wars.

Apple has finished working on a foundation for its large language models — the systems that power conversational AI tech — that it calls "Ajax," Bloomberg reported.

The company created the Ajax framework, in part, to establish a basis for machine learning development to keep up with the rapid advancement of generative AI tech, sources told Bloomberg.

As of this week, the company has used "Ajax" to create a conversational AI chatbot akin to ChatGPT that some workers are calling "Apple GPT."

Apple didn't immediately respond to Insider's request for comment.

The iPhone maker's development of its own AI tools appears to be part of the company's efforts to cash in on the AI hype and compete with big tech companies like Google and Microsoft that have recently released their own AI chatbots.

"We see enormous potential in this space to affect virtually everything we do ... It will affect every product and every service that we have," Apple CEO Cook said during a February earnings call.

So far, Apple has integrated AI into features like "fall detection" found on some Apple Watch Models, and "crash detection" on specific Apple Devices — tools Cook has said are keeping people safe.

"These things are not only great features, they're saving people's lives out there," Cook said during a May earnings call.

Even so, the iPhone maker has appeared to be in no rush to launch its new AI products anytime soon.

While Apple's CEO called the AI wave sweeping the tech industry "huge," he has said that AI needs to be thoroughly tested for safety before it can be deployed.

"It's very important to be deliberate and thoughtful on how you approach these things," Cook said during the company's earnings call in May.

Still, some tech experts think Apple just might be a little too late with AI.

Michael Gartenberg, a tech analyst and strategist, said Apple is falling behind on the AI front given how features like Siri, an AI voice assistant for Apple device users, are far less advanced than the latest generative AI tools out there.

"When it comes to artificial intelligence, particularly Siri, Apple has gone from leader to laggard," Gartenberg wrote.

Investors might not agree, though: Apple's stock jumped on the Bloomberg report, and was up about 0.8% on the day in late-afternoon trade compared to the broader market, which was up only 0.3%.