Meta and Apple are in talks to integrate parent company Facebook’s artificial intelligence (AI) models into Apple Intelligence, according to a report. Wall Street Magazine.
The report suggests that the agreement between both companies will be similar to the one the Tim Cook-led company struck with OpenAI. Information published by Mark Gurman, magazine columnist Bloomberg He noted that the agreement does not involve direct payments. “Apple is not paying OpenAI as part of the partnership. The company believes that the use of brand and technology launch for hundreds of millions of their devices, there is a value equal to or greater than the financial payment.”
Profits will be generated through a revenue sharing model. iPhone, iPad and Mac owners have access to free versions of the most advanced artificial intelligence algorithms from Apple’s commercial partners. The goal is to entice these users to pay for membership. bonus. Apple will receive a portion of each subscription, which could be similar to the fee it charges the App Store for purchases. in the application.
Gene Munster, managing partner at venture capital firm Deepwater Asset Management, says achieving large-scale adoption is one of the biggest obstacles to new developments in artificial intelligence. Ensures that the infrastructure software And Hardware from Apple is presented as a solution to the problem.
Meta entered the generative AI industry last February with the release of Llama. In April, the company introduced the third version of its model family. He argued that this generation “demonstrates cutting-edge performance and offers new capabilities, including improved thinking. “These are currently the best open source models in their class.” The proposal has received support from the technology and research sectors. However, “the Apple deal would be a big win for CEO Mark Zuckerberg and would streamline the company’s artificial intelligence division,” the report said.
Wall Street Magazine points out that these approaches “emphasize The unlikely alliances forming between big tech companies in the age of artificial intelligence” Apple and Meta have one of the biggest disputes in the history of the tech industry. In 2021, the iPhone maker changed the privacy terms on its devices to block tracking of its users and prevent that information from being used for advertising purposes. The Mark Zuckerberg-led corporation said the measure would cost it nearly $10 billion in lost advertising revenue. The firm also noted that the fees charged by the App Store “block innovation and competition.”
The desire to dominate the nascent artificial intelligence market at all costs appears to be trumping any of these differences, at least from Apple’s perspective. Craig Federighi, the organization’s senior vice president, announced in a speech at WWDC that the corporation is seeking agreements with other technology companies focused on developing artificial intelligence systems. “People will have a preference for certain models that they want to use, perhaps one that’s great for creative writing or one that’s particularly useful for coding. We want to make it easier for users to access the tool of their choice. We may add other algorithms such as Google Gemini in the future.”
The long-term benefit of the proposed agreements is still in question. According to Munster, After the agreement with Apple, OpenAI infrastructure costs will increase by 30-40%. Sustaining activities without obtaining economic benefits can become a pressing problem. However, the analyst predicts that 10 to 20% of users will pay for the premium ChatGPT subscription received from the alliance. “This could mean billions of dollars for artificial intelligence companies that successfully integrate into the new Apple platform,” he emphasizes. Wall Street Magazine.
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