Following Apple’s announcement that it would incorporate OpenAI’s artificial intelligence into the iPhone, the stock soared to an all-time high, reaching $203 per share, up over 5% on Tuesday. The iPhone maker was the best-performing stock on all three major indexes.

Apple unveiled Apple Intelligence at the Worldwide Developers Conference (WWDC) on Monday. The new set of tools will involve AI-powered updates to Siri and a range of native Apple apps.

The company is partnering with OpenAI to integrate ChatGPT 4-o into its latest iPhone operating system (iOS 18), iPadOS 18, and macOS Sequoia. Apple said it will also partner with other AI providers in the future.

Apple senior vice president of software engineering Craig Federighi said the company wants to give users access to “external models” in addition to its own AI. “We’re starting out with the best of these, the pioneer and market leader ChatGPT from OpenAI,” he said. He added that Siri will have the ability to “tap into ChatGPT’s expertise when it might be helpful” for free.

Apple CEO Tim Cook has since insisted that Apple won’t sacrifice user privacy when incorporating the tools. OpenAI has received criticism for not doing enough to protect users’ personal data.

Meanwhile, analysts at Bank of America wrote in a research note Tuesday morning that they’re concerned Apple’s AI strategy could become an issue for Google.

“From an Alphabet investor perspective, there have been concerns, which we have shared, that any deal between Apple and Open AI could be a negative for [Google parent] Alphabet stock, opening the door for increasing AI usage as an alternative to search,” they wrote.

But Morgan Stanley analysts said they “continue to believe [Apple] is more likely than not going to leverage [Google] and Gemini.” They added that they think Google’s generative AI offerings for Android still make it a stronger product than Apple’s iOS 18 update.

–Laura Bratton contributed to this article