Apple and Meta have discussed integrating Meta’s generative AI model into Apple Intelligence, Apple's AI system for iPhones and other devices. This potential partnership highlights the evolving alliances in the AI industry. Apple, a latecomer to generative AI, has developed smaller AI models but is seeking partners for more complex tasks. At the Worldwide Developers Conference, Apple announced OpenAI’s ChatGPT as its first partner, with Google’s Gemini also being considered.
Potential Partnerships
- Meta: Discussions with Meta could lead to integrating Meta’s AI models into Apple Intelligence, leveraging Apple’s massive distribution network.
- Other AI Companies: Apple is also in talks with AI startups Anthropic and Perplexity, aiming to provide users with multiple AI options.
Apple’s approach involves allowing AI companies to sell premium subscriptions through Apple Intelligence, with Apple taking a cut of the revenue, similar to its App Store model. This strategy could significantly boost the distribution and financial success of AI companies partnering with Apple.
Impact and Challenges
- OpenAI: Offering a free version of ChatGPT through Apple Intelligence, with an option for premium subscriptions, is expected to double ChatGPT usage but also increase infrastructure costs by 30% to 40%.
- Meta: A partnership with Apple would be a significant win for Meta’s AI division, enhancing its position in the AI race. Meta’s Llama models have gained industry support, and a deal with Apple would further elevate its stature.
Despite potential collaborations, Apple and Meta have a history of conflicts, particularly over privacy changes and advertising revenue. Apple’s 2021 privacy changes cost Meta $10 billion in lost revenue in 2022, and Meta has sought ways to bypass Apple’s service charges for advertising.
Apple aims to avoid over-reliance on OpenAI by partnering with multiple AI companies. However, integrating these AI models into Apple Intelligence requires individual deals, unlike the streamlined process of the App Store. Apple’s strategy is to offer diverse AI options to cater to different user needs, such as creative writing or medical research.
The discussions between Apple and Meta, along with other AI companies, signify a strategic move by Apple to enhance its AI capabilities through partnerships. This approach could reshape the AI landscape, providing significant distribution advantages and financial opportunities for AI companies.
