Beyond OpenAI: Apple Partners with Multiple AI Companies to Create an 'AI Model Marketplace'

To keep pace with the surge in artificial intelligence, Apple is engaging with a growing number of AI companies for potential collaborations. Following its initial partnership with OpenAI, Apple is seeking a similar alliance with Meta. Reports indicate that Apple is exploring the integration of generative AI models from various companies, including Meta, into its newly launched AI system for the iPhone.

Just two weeks ago, at the Worldwide Developers Conference (WWDC), Apple unveiled a suite of AI-driven innovations, featuring its collaboration with OpenAI. Among these innovations is the "Apple Intelligence" suite, which enhances notification prioritization, text summarization, and image generation, along with an improved Siri. As a newcomer in the generative AI space, Apple has developed its own small-scale models but is actively seeking partners to address more complex tasks. Craig Federighi, Apple’s Vice President of Software Engineering, emphasized, “We want to start with the best, and ChatGPT represents the best choice for our users today.” He also highlighted Apple's interest in integrating Google's Gemini.

Recent discussions suggest that Apple is considering partnerships beyond OpenAI, including ongoing discussions with longtime search partner Google and potential collaborations with other AI companies in regions like China. Additionally, Apple is in talks with Meta, as well as generative AI startups such as Anthropic and Perplexity, to incorporate their models into Apple Intelligence.

While the details of these partnerships remain uncertain, negotiations may involve AI companies offering subscription-based premium services through Apple Intelligence, similar to the App Store model. Reports indicate that Apple is not charging fees from these companies; instead, they would share subscription revenue generated from Apple device users.

For Apple, collaborating with additional companies means providing users with more choices. Apple has indicated that if it reaches agreements beyond OpenAI, users could select from external AI models in addition to its internal systems. For the AI companies involved, partnering with Apple offers valuable distribution through its extensive platform.

However, these discussions are ongoing and could potentially fall through, making the benefits for AI companies difficult to fully assess. Gene Munster, a senior analyst at Deepwater Asset Management, noted that while usage of ChatGPT is expected to double once integrated with Apple, OpenAI's infrastructure costs could rise by 30% to 40%. He observed, “Distribution channels can be hard to secure. The advantage of Apple is its existing large-scale distribution network.”

Despite these advancements, Apple faces regulatory challenges. Recently, it announced that due to the EU’s antitrust regulations, specifically the Digital Markets Act (DMA), it cannot release its personal AI system, "Apple Intelligence," or related features to EU users this year.

In light of its AI advancements, Apple’s stock has risen nearly 8% this month, reclaiming its position as the world’s most valuable public company, surpassing Microsoft. This surge reflects strong market confidence in Apple’s AI vision, suggesting that analysts believe these new functionalities will encourage users to upgrade their devices.