Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
Apple (NASDAQ: AAPL) and Meta (NASDAQ: META) are reportedly discussing integrating Meta’s generative AI model into Apple’s newly announced iPhone AI system. This potential collaboration comes as both companies ramp up their efforts in artificial intelligence, with Apple recently unveiling its “Apple Intelligence” technology and Meta expanding its AI chatbot offerings.
While not yet finalized, the talks signal a growing trend of partnerships in the rapidly evolving AI landscape. Meta’s stock saw slight gains on the news at the market opening today.
Meta Stock Gains After News of Apple AI Partnership
Meta Platforms Inc.’s stock price climbed on Monday following reports of potential AI collaboration with Apple. As of 9:59 AM EDT, Meta’s stock was trading at $505.30, up $10.52 or 2.13% from the previous close. The company’s market capitalization stood at $1.28 trillion, and trading volume reached 6,655,608 shares, below its average daily volume of 13,326,916.
The stock’s performance has been robust, with Meta outpacing the S&P 500 across various timeframes. Meta shares have surged 42.87% year-to-date, compared to the S&P 500’s 14.85% gain. The company’s one-year return of 75.15% and a five-year return of 164.57% have also significantly outperformed the broader market. Analysts maintain a positive outlook on Meta, with price targets ranging from $260.00 to $593.00.
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Meta’s Generative AI Model in the iPhone AI System?
The potential partnership between Apple and Meta could involve the integration of Meta’s generative AI model into Apple’s iPhone AI system. While Apple is not offering direct payment for these collaborations, it would provide valuable distribution channels for AI partners. The deal structure may allow AI companies to sell premium subscriptions through Apple Intelligence. This strategy aligns with Apple’s broader initiative to incorporate AI technology from various companies into its devices, potentially reducing reliance on any single AI partner.
Apple has been making significant strides in AI development, recently announcing plans to integrate “Apple Intelligence” across its suite of apps and partnering with OpenAI to enhance Siri with ChatGPT capabilities.
The company is focusing on practical AI features, such as writing suggestions and custom emojis, while emphasizing user privacy. Apple plans to roll out these AI enhancements in its newest operating systems later this year, although it’s holding back certain features in the European Union due to regulatory concerns.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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