Apple's AI Moves with OpenAI and Meta: Innovative or Invasive?

Partnering for Progress or Masking Shortcomings?

Apple, the tech giant known for its sleek devices and user-centric approach, is making waves in the world of artificial intelligence (AI).

However, their strategy is raising eyebrows as they turn to collaboration rather than solely relying on in-house development.

At the center of this discussion is Apple Intelligence, their recently announced AI system for iPhones.

To bolster its capabilities, Apple is reportedly in talks with Meta, the parent company of Facebook, to integrate Meta's generative AI model.

This comes on the heels of Apple's confirmed partnership with OpenAI, the creators of ChatGPT, another powerful AI tool.

Is Apple Playing Catch-Up?

These partnerships suggest Apple may be playing catch-up in the AI race.

While they have developed some of their own AI models, they seem to be acknowledging that established players like OpenAI and potentially Meta have a lead.

This raises a question: is Apple's partnership strategy a sign they lack the internal capability to compete at the highest level of AI development?

The report by The Wall Street Journal indicates Apple might be looking beyond OpenAI.

Meta is the fifth name mentioned to put generative AI on iPhones.

They've reportedly had discussions with Google regarding their Gemini AI model, and talks with AI startups like Anthropic and Perplexity are also on the table.

This multi-pronged approach suggests Apple is aggressively seeking to bolster its AI offerings.

Additionally, Apple is considering partnerships with companies in different regions, such as China, where there might be a need for custom solutions due to factors like regulations or banned technologies (like OpenAI's ChatGPT).

The Benefits of Partnership

For Apple, partnering with AI companies offers a clear benefit: wider distribution for these AI models.

By integrating them into Apple Intelligence, AI companies gain access to Apple's massive user base, potentially reaching millions of new customers.

This wider distribution could translate into significant revenue streams, especially if these AI models offer premium subscription tiers accessible through the Apple App Store.

App Store Profits or User Privacy?

Some analysts speculate that Apple's focus on partnerships might be driven by a desire to control the AI market through the App Store.

By integrating third-party AI models like ChatGPT, Apple could potentially take a cut of any premium subscriptions offered.

This raises concerns about Apple prioritising profits over user privacy, a cornerstone of their brand identity.

Apple's deal with OpenAI highlights this tension.

While user data wouldn't be collected by ChatGPT, and chat history is deleted after interactions, some might be wary of Apple's role as the gatekeeper to these powerful AI tools.

Additionally, upon the announcement of partnership with OpenAI, Elon Musk has been strongly against it.

His main concern revolves around the security risks linked to integrating OpenAI's technology, especially the widely used ChatGPT chatbot, directly into Apple's operating system.

He even threatens to ban Apple devices across all his companies if the partnership becomes a reality.

Is Meta’s AI Reliable?

Meta's AI has been shown to be unreliable in a number of ways.

For example, a journalist recently had a disconcerting experience with Meta AI, a new chatbot designed to rival ChatGPT and Google's Gemini.

When the journalist asked Meta AI a simple question about himself, the chatbot fabricated an elaborate backstory that portrayed him as a criminal.

This incident is just one of many cases highlighting the potential for Meta AI to spread misinformation.

Additionally, Meta, the parent company of Facebook and Instagram, has been accused of collecting a massive amount of data from hundreds of millions of users in Europe.

Consumer rights groups allege that Meta collects unnecessary information on its users, such as data used to infer their sexual orientation, emotional state or even their susceptibility to addiction.

The groups claim that Meta's practices violate parts of the European Union's General Data Protection Regulation (GDPR).

Meta, on the other hand, argues that it complies with GDPR and is committed to protecting user privacy.

In May 2023, EU regulators fined Meta a record-breaking €1.2 billion for violating GDPR rules.

The complaints filed by consumer rights groups could potentially expose Meta to yet more legal action.

In October 2023, EU regulators forced Meta to start asking for explicit consent from its users to process their personal information for targeted advertisements.

Meta also launched a subscription service allowing its European users to pay to use ad-free versions of Facebook and Instagram.

However, consumer rights groups argue that Meta's subscription service offers users "an unfair and misleading choice" as its data processing isn't transparent and users cannot easily leave its platforms.

This leads to a growing concern about Meta's ability to develop reliable AI.

The company's social media platforms are riddled with safety issues, and its AI products have been shown to be prone to errors.

It will be a matter of concern should Apple integrate Meta's generative AI model.

Collaboration or Catch-Up?

Apple's AI strategy is intriguing.

Partnering with established players like OpenAI and potentially Meta grants them access to leading-edge technology.

However, it also raises questions about their internal AI development capabilities and their commitment to user privacy in a rapidly evolving technological landscape.

As Apple Intelligence rolls out, it will be interesting to see if this partnership-heavy approach delivers on its promise or becomes a point of contention for users and developers alike.

Given Apple's approach to AI, Coinlive foresees a Tesla phone could potentially emerge in the near future.