Apple, Meta Have Discussed an AI Partnership - WSJ

The Nugget

Apple and Meta have had discussions about integrating Meta's generative AI model into Apple's ecosystem to enhance Apple's AI capabilities through a potential partnership.

Make it stick

🤝 Unlikely alliances: Apple and Meta, historically rivals, are considering collaboration in AI to capitalize on each other's strengths.
📱 Apple's strength: Apple offers unparalleled distribution through its iPhone network, crucial for spreading AI technology.
🚀 AI partnerships: Apple is not just eyeing Meta but also other AI firms like OpenAI, Anthropic, and Perplexity for diverse AI integrations.

Apple and Meta are in talks to integrate Meta’s generative AI model into Apple Intelligence to enhance Apple's AI offerings.
Meta and other AI companies seek to leverage Apple's vast distribution network via iPhones to reach more users.
Apple has developed smaller AI models but plans to collaborate with companies for more advanced tasks.

At the Worldwide Developers Conference, Apple announced a partnership with OpenAI's ChatGPT for its AI system, Apple Intelligence.
Apple aims to offer a selection of external AI models, allowing users to pick the best model for their needs.
Google’s Gemini, along with AI startups Anthropic and Perplexity, are also in discussions with Apple for potential integration into Apple Intelligence.

Revenue Model: AI companies can sell premium subscriptions through Apple Intelligence; Apple retains a cut similar to the App Store model.
User Engagement: Integration with Apple could result in significant distribution gains for AI companies, though it's unclear how much financial benefit it will generate.

Apple and Meta have had strained relations, notably around privacy issues and advertising practices which cost Meta heavily due to Apple's changes.
A potential partnership could symbolize a major strategic shift and could elevate Meta's standing in the AI market.

“We wanted to start with the best,” said Apple software leader Craig Federighi, referencing the inclusion of ChatGPT in Apple Intelligence.
“The beauty of what Apple has built is that you’ve got this engaged distribution at scale,” said Gene Munster, an Apple analyst.
“People are going to want to draw on that kind of expertise that might not be part of our core,” Federighi stated at the developers' conference, emphasizing the diversity of AI models Apple aims to provide.
"Tensions between the two companies have persisted for more than a decade," illustrating the historical rivalry between Apple and Meta.

This summary contains AI-generated information and may have important inaccuracies or omissions.