Apple (AAPL) has reportedly rejected a partnership proposal from Meta (META). Bloomberg reports that the tech giant rejected Meta's proposal several months ago to integrate its AI chatbot technology into Apple's smartphones.
Yahoo Finance's Seana Smith and Brad Smith have more details.
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Video Transcript
Apparently Apple calls all the shots.
The iPhone maker reportedly rejected Meta's proposal to integrate iChatbot into its smartphones a few months ago, Bloomberg reported.
The two companies have not discussed partnering in AI since March, according to a person familiar with the matter.
This is noteworthy because Apple recently stated at its WWDC how much of a role the I will play in the next smartphone models it brings to market, at least in the operating system, meaning that essentially all modern smartphones over 15 inches will have these features.
So this is yet another example of a meta platform, and it was 10 years ago when Facebook was trying to make sure they didn't miss the wave of being able to leverage their installed base.
And that led to data sharing practices and so on and so forth, but they never updated it over time.
So, this is another example of making sure you're not missing out on the installed base and the potential of generative AI or that software.
Yes, and one could argue that this is a potentially huge missed opportunity from a meta perspective.
When we talk about the size of the installed base, how specifically might that have impacted their business?
So, it appears they had discussions, but this was very early on when Apple was in discussions with a number of companies to explore their model, integration within their devices.
So, again, the fact that it's not going to happen or doesn't seem to be true means that, at least at this point, a partnership isn't going to happen here.
However, they do not rule out the possibility of some kind of partnership in the future.
What that specifically will be is, of course, anyone's guess.
But it would make sense considering some of the technical data Meta has in their AI sys system.
This may make sense for Apple in the future.
I don't know yet
