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Apple Considers Integrating Meta’s AI into Its Devices

ByHuey Yee Ong

Jun 25, 2024

Apple Considers Integrating Meta’s AI into Its Devices

Apple is discussing the possibility of integrating Meta Platforms’ generative AI model into its own AI system, Apple Intelligence. This discussion marks a significant step as Apple aims to enhance its AI capabilities by potentially partnering with Meta, alongside other major AI players like Google and OpenAI.

Meta, the parent company of Facebook, is exploring this collaboration to leverage Apple’s extensive distribution network, akin to the reach provided by Apple’s App Store. These discussions signify a pivotal moment for Apple, which has traditionally lagged behind in the generative AI space. Apple Intelligence was introduced earlier this month at the company’s Worldwide Developers Conference, where it was announced that OpenAI’s ChatGPT would be the first integrated partner.

Apple’s approach to AI development involves using its in-house smaller AI models for basic tasks while collaborating with external partners for more complex or specific AI capabilities.

“We wanted to start with the best,” stated Apple software leader Craig Federighi, noting that ChatGPT “represents the best choice for our users today.” He also indicated a desire to include Google’s Gemini model in the future.

Diversifying AI Partnerships

Through engaging with various AI companies, Apple aims to reduce dependence solely on any single AI provider. By negotiating with multiple AI firms, Apple intends to offer its users a choice among various AI models, enhancing the customization and functionality of Apple Intelligence.

However, how broadly Apple will open its new AI platform to these external companies is still unclear. Unlike the streamlined process for developers to submit apps to the App Store, AI partnerships require individual negotiations, which can be time-consuming.

Financially, Apple is not seeking monetary exchanges in these partnerships but plans to allow AI companies to offer premium subscriptions through Apple Intelligence. Similar to its App Store model, Apple would retain a portion of the subscription revenues generated on its platforms.

The talks with Meta, alongside discussions with other AI entities like Anthropic and Perplexity, highlight the evolving landscape of tech collaborations in the AI domain. While the deals are not yet finalized and could potentially fall through, the successful integration of these AI models could significantly impact the distribution and financial success of the involved AI companies.

Overcoming Historical Tensions

Notably, Apple and Meta have had a contentious relationship historically, especially after Apple’s privacy updates in 2021, which Meta claimed would cost it approximately $10 billion in lost advertising revenue in 2022. Despite these tensions, the current discussions could forge a new path in their relationship, focusing on mutual benefits in the AI space.

Gene Munster, a seasoned Apple analyst from Deepwater Asset Management, anticipates that the Apple partnership could lead to a doubling in ChatGPT usage, although it might increase OpenAI’s infrastructure costs by 30% to 40%. Munster also estimates that 10% to 20% of Apple users might opt for premium AI subscriptions, potentially translating into billions in revenue for AI companies if these integrations proceed smoothly.

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Featured Image courtesy of SOPA Images

Huey Yee Ong

Hello, from one tech geek to another. Not your beloved TechCrunch writer, but a writer with an avid interest in the fast-paced tech scenes and all the latest tech mojo. I bring with me a unique take towards tech with a honed applied psychology perspective to make tech news digestible. In other words, I deliver tech news that is easy to read.

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