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Rivals Turn Allies: Apple and Meta’s AI Ambitions Revealed

by Team Lumida
June 23, 2024
in AI
Reading Time: 3 mins read
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Rivals Turn Allies: Apple and Meta’s AI Ambitions Revealed
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Key Takeaways

  1. Apple and Meta are discussing integrating Meta’s generative AI into Apple Intelligence.
  2. Apple aims to offer users multiple AI model options, reducing reliance on OpenAI.
  3. Potential partnerships could mean significant revenue for AI companies and expanded distribution through Apple’s ecosystem.

What Happened?

Apple and Meta are in talks about integrating Meta’s generative AI model, Llama, into Apple Intelligence. This follows Apple’s recent announcement at the Worldwide Developers Conference, where OpenAI’s ChatGPT was introduced as the first partner for the AI system.

Apple is also in discussions with Google, Anthropic, and Perplexity. Gene Munster, an analyst at Deepwater Asset Management, predicts that 10% to 20% of Apple users may opt for premium AI subscriptions, potentially generating billions for AI companies.

Why It Matters?

This potential partnership signals a significant shift in the tech landscape. Apple’s massive iPhone distribution provides a unique advantage for AI companies looking to scale. According to Craig Federighi, Apple’s software leader, offering multiple AI options ensures users get the best tools for specific tasks, from creative writing to medical research.

For Meta, securing a deal with Apple would elevate its AI division, showcasing its capabilities and increasing its market presence. Given the historic tension between Apple and Meta, this collaboration could reshape competitive dynamics in the AI space.

What’s Next?

Investors should watch for finalized deals between Apple and these AI companies. If successful, these partnerships could redefine AI accessibility and usage across Apple’s ecosystem, driving increased user engagement and potential subscription revenue.

Apple’s approach to incorporating diverse AI models may set a new standard in the industry, pushing competitors to adopt similar strategies. Keep an eye on announcements from Apple and Meta, as well as potential impacts on AI infrastructure costs and subscription models.

Source: WSJ
Tags: AIAppleMeta
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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

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