Facebook’s parent has held discussions with Apple about integrating Meta Platforms’ generative AI model into Apple Intelligence, the recently announced AI system for iphones other devices, according to people familiar with the matter.
Facebook parent Meta Platforms (NASDAQ:META) has discussed integrating its generative AI model into Apple (NASDAQ:AAPL)’s recently announced AI system for iPhones, the Wall Street Journal reported on Sunday.
AI startup Anthropic has been in discussions with Apple to bring its generative AI to Apple Intelligence, the Journal reported, citing people familiar with the matter.The discussions have not been finalized and could fall through, the Journal reported, adding that deals with Apple would help AI companies to obtain a wider distribution of their products.
A latecomer to generative AI, Apple has developed its own smaller artificial-intelligence models but has announced it will turn to partners for more complex or specific tasks. When Apple Intelligence was unveiled earlier this month at the company’s Worldwide Developers Conference, OpenAI’s ChatGPT was announced as the company’s first partner.
“We wanted to start with the best,” said Apple software leader Craig Federighi, noting that ChatGPT “represents the best choice for our users today.”
He also said Apple wanted to integrate Google’s Gemini as well.In addition to Google and Meta, AI startups Anthropic and Perplexity also have been in discussions with Apple to bring their generative AI to Apple Intelligence, said people familiar with the talks.
If Apple strikes deals with partners beyond OpenAI, Apple said customers could choose which external AI models they want to use in addition to Apple’s internal systems.The discussions with Meta highlight the unlikely alliances that are forming between major technology companies in the artificial-intelligence era.
OpenAI’s tech is set to be embedded in Microsoft and Apple devices. And an Apple and Meta deal would be noteworthy given how much the two companies have been at loggerheads over other emerging tech issues.
In its talks with other AI companies, Apple hasn’t sought for either party to pay the other, the people said. Instead, the AI companies can sell premium subscriptions to their services through Apple Intelligence. As it does on its app store, the iPhone maker would keep a cut of subscription revenue from its devices.
The discussions haven’t been finalized and could fall through. Even though deals with Apple would help AI companies obtain massive distribution of their products, it is unclear how much of a financial windfall it would be.
While ChatGPT usage is expected to double with the Apple partnership, OpenAI’s infrastructure costs are expected to grow 30% to 40%, said Gene Munster, a longtime Apple analyst and managing partner at Deepwater Asset Management.
Munster expects 10% to 20% of Apple users will opt into paying for a premium AI subscription to a product like ChatGPT. That could mean billions of dollars for AI companies that integrate successfully with Apple’s new platform.
“Distribution is hard to get,” Munster said. “The beauty of what Apple has built is that you’ve got this engaged distribution at scale.”A partnership with Meta would help elevate the stature of its efforts in the tech industry’s AI race and represents a rare olive branch between the social-media giant and the iPhone maker.
Meta launched Llama 2, its large language model, in July 2023, and in April, the company released the latest versions of its AI models, called Llama 3. While Llama has gained support and adoption within the tech industry and among startups, a deal with Apple would represent a major victory for Chief Executive Mark Zuckerberg and his company’s AI division.
Apple’s Federighi said it makes sense for the company to offer numerous AI options because users will prefer different models for different tasks, such as creative writing or researching medical information. “People are going to want to draw on that kind of expertise that might not be part of our core,” he said at the developers conference earlier this month.
