Press Release

Apple Rejects Meta AI and Collaborates With Google and OpenAI

Apple chooses Google’s Gemini and OpenAI’s ChatGPT over Meta’s AI chatbot Llama.

TakeAway Points:

  • Apple declined to integrate Meta’s AI chatbot, Llama, citing privacy concerns and favouring Google’s Gemini and OpenAI’s ChatGPT.
  • Apple announced new AI capabilities under the name Apple Intelligence, but it is looking for collaborations for more complex work, maybe involving Anthropic.
  • Although there are no explicit financial transactions in the agreement with OpenAI, ChatGPT subscription fees may result in App Store commissions.

Apple Declines Meta’s AI Chatbot Integration

Apple Inc. has decided against integrating Meta Platforms Inc.’s AI chatbot, Llama, into its iPhone ecosystem. According to sources familiar with the matter, the two companies engaged in brief discussions in March, but these talks did not progress to a formal stage. 

Apple has no active plans to incorporate Llama into its products. The decision comes as Apple has been finalizing deals to use OpenAI’s ChatGPT and Alphabet Inc.’s Gemini in its offerings. Apple announced its agreement with ChatGPT earlier this month and plans to offer Gemini in the future.

The primary reason for Apple’s decision appears to be concerns over Meta’s privacy practices, which Apple does not consider stringent enough. This stance aligns with Apple’s long-standing criticism of Meta’s technology. Additionally, Apple views ChatGPT as a superior offering compared to Meta’s Llama. 

Google, already a partner for search in Apple’s Safari web browser, is expected to extend its relationship with Apple through the future Gemini deal.

AI Integration Plan

Apple unveiled its new suite of artificial intelligence features, branded as Apple Intelligence, at the Worldwide Developers Conference on June 10. These features include tools for summarizing notifications, transcribing voice memos, and generating custom emojis. 

Despite these advancements, Apple acknowledges that its chatbot technology is not as advanced as some of its competitors, prompting the company to seek partnerships for more complex AI tasks.

Apple believes that customers will benefit from the ability to switch between different chatbots based on their needs, similar to how users might alternate between Google and Microsoft Corp.’s Bing for searches. In line with this strategy, Apple continues to engage in discussions with AI startup Anthropic about potentially adding its chatbot as an option. Apple Intelligence is set to roll out later this year as part of the operating systems for the iPhone, iPad, and Mac.

Financial Implications

The current deal with OpenAI does not involve direct financial transactions. Instead, Apple will allow paying ChatGPT customers to access their subscriptions within the iOS operating system. This arrangement could generate revenue for OpenAI, with a percentage potentially going to Apple in the form of App Store commissions.

Historically, Apple and Meta were on friendlier terms, particularly a decade ago when Facebook was integrated into iOS. However, the relationship has soured in recent years as the two companies have become fierce rivals, competing over AI, home devices, and mixed-reality headsets. 

The Wall Street Journal reported that Meta had held talks with Apple about integrating its generative AI model into Apple’s AI system, Apple Intelligence. However, Apple has decided to move forward with other partners, including OpenAI and potentially Google.

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