Apple rejected Meta’s offer for AI partnership on iPhone, deals with OpenAI, Alphabet instead, says report

iPhone maker Apple Inc. had rejected offers from Meta Platforms Inc. to integrate the latter's Llama chatbot in the mobile device as part of an artificial intelligence (AI) partnership, Bloomberg reported, citing sources.

The companies had “brief talks” in March about integrating Llama AI chatbot into the iPhone, but it didn't reach the formal stage and Apple has “no active plans” for it either, the sources added.

At the same time, Apple was also in discussions with OpenAI and and Alphabet for their AI products — i.e. ChatGPT (a deal was announced early in June) and Gemini (deal expected in the future), respectively, it added.

Apple and Meta did not respond to queries, as per the report.

Factors for Consideration

Apple's talks with Meta stalled as it didn't find the latter's privacy practices “stringent enough”, the sources added. It also tracks that Apple has been vocally critical of Llama and integrating it into the iPhone would have been a volte-face.

The report further added that ChatGPT is viewed as a “superior offering” and Apple already has relations with Google for its Safari web browser, so a Gemini collab would not be too surprising.

Apple is also optimistic about results from its AI start-up Anthropic, with sources saying a chatbot could eventually be available.

Notably, the deal with OpenAI allows paying ChatGPT customers to access their subscriptions within the iOS operating system. This could generate revenue for OpenAI, and Apple will take its cut from App Store commissions.

Apple Intelligence

At its Worldwide Developer Conference 2024 event in California on June 10, Apple unveiled a suite of AI features termed ‘Apple Intelligence’.

Apple Intelligence will be available to iPhone 15 Pro and later users. Meanwhile, iPad users with M1 and later chipsets will be able to harness the power of Apple intelligence to get a number of new AI features.

Siri will get on-screen awareness thanks to Apple Intelligence, meaning it will be able to understand what's running on a user's screen and also take action in a particular app based on the user's command.

For instance, users will be able to find a specific picture by giving Siri a voice command and then asking Siri to make a calculation or register a note. Apple says Siri's capabilities to take actions will not be limited to just Apple's apps and can be used on third-party apps as well.

(With inputs from Bloomberg)