Apple has reportedly been in talks with Meta to partner on artificial intelligence (AI). Sources familiar with the matter told The Wall Street Journal that the iPhone maker and the social media giant have discussed incorporating Meta’s AI model into Apple’s Apple Intelligence, which was recently announced.
The publication added that Meta and other companies currently involved in generative AI are hoping to benefit from Apple’s large distribution. Conversely, the PC and phone manufacturer has revealed its desire to work collaboratively with partners such as OpenAI on even more difficult AI tasks.
Craig Federighi, who serves as Apple’s software leader, has been quoted as saying, “We wanted to start with the best.”. He also mentioned that, possibly, in the present moment, ” ChatGPT represents the best choice for our users.”. He also said the company wanted to integrate Google’s AI model, Gemini.
WSJ’s sources also added that Apple had spoken to AI startups Anthropic and Perplexity about integrating their generative AI into Apple Intelligence. PYMNTS has contacted Anthropic and Perplexity for comment but has yet to hear back.
The article also looked at the mechanics of AI deals, in conversation with Gene Munster, an Apple analyst and the managing partner at Deepwater Asset Management.
He said that as a result of the ChatGPT deal, OpenAI’s use would double, but so would its infrastructure costs, which would rise between 30% and 40% as a result.
Munster told WSJ that between 10% and 20% of Apple users will jump to pick up a premium AI subscription directly to a product like ChatGPT, a figure that could be worth billions of dollars to AI when used as part of Apple Intelligence.
I think distribution is hard to get,” Munster says. “The magic Apple has created is that you have this streamlined distribution on a large scale. However, the OpenAI reports apply to Apple through the company’s Siri and writing tools.
Apple could have chosen to use its own AI technology, but—aat least according to Apple—tthe future path may lie in the convenience and power of other AI solutions that are not built by Apple, possibly those Apple sees as industry-leading (like OpenAI).
As noted when that news broke, the collaboration harkens to the partnerships with which bank and FinTech players (as well as B2B firms) are increasingly top of mind.
One report noted the classic ‘build or buy’ question that has defined brand development for generations, this time as it applies to adopting new technology: “The battle to build an in-house solution, versus buy or partner with a third-party provider to integrate best-fits technologies is something many have faced for decades.
This decision becomes further convoluted due to just how quickly technology is moving and how the demands placed on consumers are becoming more and more complex.
