Well Apple certainly took up the AI arms race this week after unveiling its AI system Apple Intelligence and a partnership with open AI.

So where does that leave the other mega caps? Let's get to Geigerboosa out west who's always keeping score on today's Tech check.

Hi, Deirdre.

Always keeping score and certainly the rankings have been

shaken up this week, potentially putting Microsoft an early

winner on the backfoot.

And we're seeing that play out in stock action today with Apple briefly surpassing

Microsoft in terms of market cap.

A few reasons why.

First, new details in the Apple Open AI deal making Microsoft look more like an AI cloud

provider, less like an innovative AI pioneer.

Bloomberg reports that Apple is not paying Open AI to use Chatpte and instead believes that pushing it out to

its hundreds of millions of devices is of equal or greater value so Apple

essentially getting for free what Microsoft spent some 13 billion billion on in open AI investments and

diluting Microsoft's open AI advantage.

Now Microsoft does get some of the money it invested in open AI

back through credits on its Azure Cloud computing platform.

But it's unclear who will foot the bill in this new Apple partnership.

Will Open AI's Azure credits be used when Apple users call up ChatGPT?

Does Open AI even have enough of them or will Microsoft

Open AI's major backer have to ultimately subsidize this deal?

Microsoft declined to comment.

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