Imagine Apple's Siri getting a boost from Facebook's (Meta's) smarts! 

That's the surprising possibility on the horizon. Apple, known for keeping things close to the chest, is in talks with Meta to bring Meta's artificial intelligence (AI) technology to iPhones and other Apple devices. This is a head-scratcher because Apple and Meta aren't exactly best buds. So, what's going on?

Why are Apple and Meta Forming an AI Alliance? 

Why is Apple and Meta Making an AI Alliance?

Tech giants Apple and Meta, known for their rivalry, might be joining forces in the world of artificial intelligence (AI). Here's why this is happening:

  • Apple's AI Boost: Apple wants to improve its AI features on iPhones and other Apple devices. They're looking to partner with companies like Meta to add "smarter" features.

  • Meta's Big Break: This could be a big win for Meta. By working with Apple, Meta's AI technology could reach millions of iPhone users.

  • Sharing the Pie: Both companies would benefit. Apple would get a wider range of AI features, and Meta would gain a huge new audience for its technology.

  • Choice for Users: Apple wants users to have a choice of AI tools. This means you might be able to pick which AI features you want to use on your iPhone in the future.

Why is this a surprise?

Apple and Meta aren't exactly best friends. They've disagreed on other tech issues before:

The rivalry between the two companies has been ongoing for over ten years. A significant point of contention arose in 2021 when Apple implemented privacy updates on its mobile devices, which Meta claimed would lead to a $10 billion revenue loss for them in 2022.

In a notable move this April, Meta provided guidelines to advertisers on how to bypass a 30% service fee imposed by Apple for “boosted posts,” an advertising format that has long been a source of conflict between the companies. 

What does this mean for you?

If Apple and Meta join forces, you might see cooler AI features on your iPhone or other Apple devices in the future. You might also have more choices about what kind of AI you want to use. Potentially, as a downside, your privacy might get compromised.

What are the Benefits of Apple and Meta AI Alliance? 

Benefits of Apple AI Alliance

Here's why this surprising alliance could happen:

For Apple:

  • Get Better AI: Apple wants to improve its AI abilities. By working with Meta, they could get access to Meta's powerful AI tool called Llama, which could make Siri and other Apple features more helpful.

  • More Choices for Users: Apple wants to give iPhone users options. With Meta on board, users might be able to pick between different AI models for different tasks, kind of like choosing an app.

For Meta:

  • Reach More People: Meta wants to get its AI in front of a lot of people. Partnering with Apple means their AI could be used on millions of iPhones and other Apple devices.

  • AI Superpower Status: A deal with Apple would show everyone that Meta's AI is a big deal and could help them compete with other AI companies.

Not a Done Deal Yet

There's a chance this team-up might not happen, but talks are going on. Even if it does, it's still early days and we'll have to see how it all works out.

Why is Apple Partnering with Other AI Companies? 

Why is Apple Partnering with Other AI Companies?

Apple is one of the most valued companies in the world, so why are they relying on other companies for AI? 

Well, there are several reasons for it. 

One is that Apple has entered the AI race way too late, and this has made Apple devices seem less usable compared to better AI models, including those in Android devices. 

To fill this huge AI gap, they are trying to utilize other popular AI models.

Not only Meta, but Apple is also said to be in talks with Google for Gemini and other LLM models like Anthropic for Calude to be used in Apple devices. 

By partnering with different AI companies, Apple can ensure that they are not solely reliant on OpenAI. This move fills the AI gap and gives users the freedom to choose different AI models, creating a win-win situation for Apple.

Additionally, some users may prefer different AI models for various use cases, such as creative writing or research writing. which is best performed in the Elephas

Apple's Federighi has publicly stated the following at the developers' conference

​People are going to want to draw on that kind of expertise that might not be part of our core

Potential Drawbacks of Apple AI Alliances 

Apple is teaming up with other tech companies to bring powerful AI tools to iPhones and iPads. This sounds great, but there could be downsides for user privacy.

  • Sharing your data: Apple says users can choose which AI models to use. But these models might still collect your data, like what you write or ask them. This data could be shared with Apple and the AI company, raising privacy concerns.

  • Who controls your data? Apple might not have complete control over how AI partners handle your data. This could be risky if a partner has weaker privacy practices than Apple.

  • Apple's in Charge (for Now): Right now, Apple calls the shots on who gets to be part of this AI party. Will they play fair with all the AI companies, or will they favor some over others?

  • Who Gets the Big Bucks? Apple might take a cut of any money you spend on these fancy AI tools. Will these subscriptions be affordable or will they break the bank?

As Elon Musk has tweeted Apple devices are going to be banned in all of his companies if Open AI is going to be integrated at the OS level of iPhones, and the visitors need to keep their phones in a Faraday cage. 

While it may seem like a little overheated statement by Elon Musk, there are chances that the long-lasting AI privacy feature of Apple might be compromised.

Even though there are some bumps in the road, Apple's AI alliances could still be a game changer. 

We'll just have to wait and see how they iron out these kinks.

Is Apple Paying other AI Companies to use their AI models?

No, Apple isn't directly paying AI companies to use their models in Apple Intelligence, the new AI feature for iPhones and iPads. Here's the deal:

  • AI companies can offer free and paid subscriptions through Apple Intelligence.

  • Apple takes a cut of the paid subscriptions, similar to the App Store model.

  • This gives AI companies a massive user base (millions of Apple users) without upfront costs.

So, it's a win-win. AI companies gain huge exposure, and Apple gets cutting-edge AI features for its devices.

Here are some calculations presented by Apple Analyst Gene Munster: 

According to Gene Munster, a seasoned Apple analyst and managing partner at Deepwater Asset Management, OpenAI's collaboration with Apple is likely to lead to a twofold increase in ChatGPT's user base. However, this surge in users is also anticipated to drive up OpenAI's infrastructure expenses by 30% to 40%. 

Munster predicts that between 10% and 20% of Apple users might choose to subscribe to a premium AI service like ChatGPT, potentially translating to billions in revenue for AI companies that seamlessly integrate with Apple's latest platform.

Munster said 

Distribution is Hard to Get 

Apple has clearly established this distribution with their iPhones, MacBooks, and other Apple devices used by millions of people worldwide.

However, there are some unknowns:

  • Will users pay for AI subscriptions?

  • Can AI companies handle the surge in users without breaking the bank?

Overall, partnering with Apple is a big deal for AI companies. It's a chance to reach millions of users and potentially make a lot of money, but it comes with challenges too.

What will be the Future of Apple Intelligence?  

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The future of Apple Intelligence will be somewhat of a new take on AI that no other company has done so far. Currently, Apple is trying to add different AI models to iPhones and other Apple Devices. Apple has already partnered with ChatGPT and publicly announced their partnership and how ChatGPT is going to be used in iPhones at their WWDC 2024, which is quite fantastic.

Now Apple is reportedly in talks with Meta and Google to include there AI models in Apple iPhones. Essentially, Apple is striving for all-around AI compatibility, allowing users to select the type of AI model they want to use for a certain price tag, while Apple Intelligence will be a basic feature for iPhones, macOS, and other Apple devices.

In the meantime, Apple might try to create a new and better AI LLM model, or they might continue offering the freedom to choose different AI models for Apple users at a certain premium. However, it is clear that although Apple joined the AI race lately, they are going to fill the gap by using other AI technologies in their Apple devices.

Conclusion 

Apple and Meta teaming up on AI is a surprising turn of events, but it could be a win-win. Apple gets a major AI upgrade, and Meta gets its foot in the door with millions of iPhone users. This partnership could also lead to more user choice and cooler AI features on our devices. However, there are privacy concerns to consider, and it's unclear how this will all play out. Only time will tell if this unlikely alliance will come true, and as of now, there is no clear deal between both of them; these are just talks.

FAQs

1. Why would Apple partner with other AI companies?

Apple is partnering with other AI companies to enhance its AI capabilities, which lag behind competitors. Collaborating with AI leaders allows Apple to integrate advanced AI features into its devices, offering users diverse AI options while staying competitive in the fast-evolving tech landscape.

2. Is Apple really partnering with Meta on AI?

While Apple and Meta are in discussions to collaborate on AI, no official deal has been confirmed. Talks focus on integrating Meta's AI technology into Apple's ecosystem, potentially providing significant AI advancements for Apple devices and expanding Meta's AI reach to millions of iPhone users.

3. Who will control user data if Apple partners with other AI Companies?

If Apple partners with other AI companies, data control will be shared. Apple will oversee data usage, but partner companies may also access user data for AI functions. This raises privacy concerns, as partner companies' data practices may not align with Apple's stringent privacy standards.