Apple Intelligence suddenly attracted many major partners

Many major tech companies have held talks about the possibility of integrating a generative AI model into Apple Intelligence.

According to the WSJ, Facebook’s parent company has held discussions with Apple about integrating the synthetic AI model into Apple Intelligence, the recently announced artificial intelligence system for iPhones and other devices.

Meta and many technology companies that are developing synthetic AI expect that integration with Apple Intelligence can help improve the analytics capabilities of artificial intelligence systems. Despite being a laggard in the industry, Apple has developed a number of small artificial intelligence models that can perform a variety of complex tasks.

Desire to integrate with Apple Intelligence

When Apple Intelligence was launched in early June, OpenAI’s ChatGPT was announced as Apple’s first partner.

“We want to start with the best. Besides, ChatGPT is our most suitable representative at the moment,” said Craig Federighi, Apple’s Director of Software. He also said the company also looks forward to integrating Google’s Gemini into Apple Intelligence.

Apple Intelligence image on the iPhone: Photo: NurPhoto.

In addition to Google and Meta, other startups in the AI space including Anthropic and Perplexity are also in discussions with Apple to bring their generative AI to Apple Intelligence.

If Apple reaches an agreement with partners outside of OpenAI, customers can choose any AI model they want to use outside of Apple’s internal system. In addition, in negotiations with other AI companies, Apple does not ask for a service fee split. Instead, they can sell premium service subscriptions through Apple Intelligence.

OpenAI will offer a free version of ChatGPT through Apple Intelligence, but users can also link a paid ChatGPT account to their Apple device.

Win-win

Gene Munster, a longtime Apple analyst and managing partner at Deepwater Asset Management, said that while ChatGPT usage is expected to double if there is a partnership with Apple, OpenAI’s cost could be 30-40% higher.

Munster expects 10-20% of Apple users to choose to pay to sign up for the enhanced version of ChatGPT. This could bring in billions of dollars for AI companies that successfully integrate with Apple’s new platform.

“It’s very difficult to get a wide distribution. The beauty of what Apple has built is that you can reach the user base at scale,” Gene Munster said.

Meanwhile, the collaboration between Meta and Apple will help enhance the efforts of both in the AI race. Meta launched Llama 2, a large language model in July 2023, and in April this year, the company released the latest version of this model called Llama 3.

Apple and Meta will both benefit from working together in the field of AI. Photo: Bloomberg.

If the deal with Apple is successful, Meta’s AI division will have another big victory as the company’s Llama model is receiving a lot of positive feedback.

Craig Federighi, Apple’s chief software officer, said the company’s offer of more AI options is a necessary step because users will prefer different models for specific tasks, such as writing creative content or researching medical information.

“Users will want to use different types of expertise. That may not be our strength,” Federighi said at the WWDC 2024 event.