Apple (NASDAQ:AAPL) is moving quickly to make up for lost ground in AI. The tech giant has held talks with Mark Zuckerberg’s Meta Platforms (NASDAQ:META) to integrate the latter’s GenAI model into its Apple Intelligence. This development comes on the heels of Apple announcing a major deal with OpenAI.
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Apple’s Broader AI Push
While Apple has undertaken its own AI model development efforts, the iPhone maker is currently seeking strategic AI partnerships with other prominent names. Earlier this month, Microsoft (NASDAQ:MSFT)-backed OpenAI’s ChatGPT became Apple’s first partner in this space. Notably, Apple also plans to offer Google’s (NASDAQ:GOOG) (NASDAQ:GOOGL) Gemini chatbot on its devices.
However, Apple’s AI push may not end with just these partnerships. According to the Wall Street Journal, the company has also held talks with top AI startups Anthropic and Perplexity to bring their solutions to Apple Intelligence.
The prospect of multiple partnerships means Apple customers will be able to choose which AI models to use. Interestingly, Apple’s AI deals do not involve any monetary consideration. For AI model providers, a partnership with Apple represents a substantial increase in market reach. For Apple, a portion of the subscription revenue from these offerings could accumulate over time. Moreover, teaming up with multiple partners could help Apple avoid overreliance on a single provider.
What Is the Target Price for Apple Stock?
The excitement around AI has pushed Apple’s share price nearly 22% higher over the past three months. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average AAPL price target of $212.41.
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