Apple Reportedly Said No To Meta’s Offer For iPhone AI Integration Due To Privacy Policy Concerns

Apple and Meta, two tech giants, were rumored to be exploring a potential AI partnership centered around Llama earlier this year. However, recent reports suggest that these discussions have not progressed further.

Privacy Practices

According to sources familiar with the matter cited by Bloomberg, Apple has decided against moving forward with the integration due to concerns over Meta’s privacy practices. The initial talks in March regarding the integration of Llama AI chatbot into the iPhone did not advance to a formal stage. As of now, Apple has no active plans for such a collaboration.

Chatbot Technology

While both Apple and Meta have refrained from commenting on the situation, it is clear that Apple is exploring other avenues in the AI space. Recently, Apple announced an agreement related to ChatGPT and hinted at the potential introduction of Gemini in the future. Additionally, the company is reportedly in talks with AI startup Anthropic to incorporate its chatbot technology.

The Monday Bloomberg report highlighted that Apple engaged in brief discussions with Meta around the same time it was finalizing deals with OpenAI and Alphabet. Although Apple has since confirmed agreements with OpenAI and expressed intentions to offer Alphabet’s Gemini, there is no ongoing dialogue with Meta regarding the Llama AI integration.

Apple at WWDC today announced Apple Intelligence, a deeply integrated, personalized AI experience for Apple devices that uses cutting-edge generative artificial intelligence to enhance user experiences across iPhone, iPad, and Mac.

Personal Context

Apple says that Apple Intelligence “combines the power of generative models with personal context to deliver intelligence that’s incredibly useful and relevant.” Baked into iOS 18, iPadOS 18, and macOS Sequoia, it can create language and images, take action across apps, and draw from personal context to simplify and accelerate everyday tasks. And with Private Cloud Compute, Apple is focused on delivering AI based on privacy, with the ability to flex and scale computational capacity between on-device processing and larger, server-based models that run on dedicated Apple silicon servers.

About E. J. McKay

E.J.McKay is a Shanghai-headquartered investment bank with a special focus on mergers & acquisitions. We are one of the most long standing independent investment banks in China, with core business of mergers & acquisitions and financing advisory.