Not just Google and OpenAI, Apple in talks with Meta for AI features on iPhones

Apple is in discussions with Meta, Facebook’s parent company, about integrating Meta’s generative AI model into Apple Intelligence, according to a report by WSJ. This new AI system was announced recently for iPhones and other Apple devices at the WWDC 2024. If the report stands to be true, Meta could become the second company after OpenAI to partner with Apple for AI applications and features. 

Meta will be able to leverage Apple's vast distribution network, similar to how apps are distributed via the App Store. Despite being a latecomer to generative AI, Apple has developed its own AI models and is now seeking partners for more complex tasks.

The report suggests that in addition to Meta and OpenAI, Apple is in talks with Google’s Gemini, and AI startups Anthropic and Perplexity. If these deals go through, Apple customers could choose from various external AI models in addition to Apple’s internal systems.

These discussions reveal unexpected alliances in the AI era. Apple and Meta, historically rivals, might collaborate despite past conflicts. For example, Apple’s privacy changes in 2021 reportedly cost Meta $10 billion in 2022. Furthermore, Meta has been providing workarounds to avoid Apple’s 30 per cent service charge on certain advertisements.

Apple hasn't sought payments from AI companies during these talks. Instead, these companies could sell premium subscriptions via Apple Intelligence, with Apple taking a cut, similar to its App Store model. While these deals could boost product distribution for AI companies, the financial benefits remain uncertain.

OpenAI plans to offer a free version of ChatGPT through Apple Intelligence, with an option for users to link a premium account. The partnership is expected to double ChatGPT usage, though it will increase OpenAI’s infrastructure costs by 30-40 per cent.

Meta's AI model, Llama, launched in July 2023, has gained support in the tech industry, and a deal with Apple would be a big achievement for Meta’s AI division.

During the WWDC 2024, Apple's software leader, Craig Federighi emphasised offering multiple AI options to cater to users’ different needs, such as creative writing or medical research.