$Apple (AAPL.US)$ is reportedly in talks with $Meta Platforms (META.US)$ about the possibility of integrating Meta's generative AI model into Apple's new AI system, Apple Intelligence.

What Happened: According to a report by The Wall Street Journal, these negotiations are a part of Apple's broader strategy to catch up in the AI race. Apple is exploring partnerships with various AI firms, including Meta, to improve its recently launched AI system for iPhones and other devices.

Apple, a late entrant to the generative AI field, has developed its own smaller AI models. However, for more complex or specific tasks, it is seeking partnerships with other companies. OpenAI's ChatGPT was announced as Apple's first partner when Apple Intelligence was launched earlier this month, reports The Wall Street Journal.

"We wanted to start with the best," said Craig Federighi, Apple software leader, adding that ChatGPT "represents the best choice for our users today." Federighi also expressed Apple's interest in integrating Google's Gemini.

AI startups Anthropic and Perplexity are also reportedly in discussions with Apple. If these negotiations are successful, Apple customers could have the option to choose which external AI models they want to use, in addition to Apple's internal systems.

The ongoing discussions with Meta highlight the surprising alliances being formed in the AI era. Despite past conflicts, a partnership between Apple and Meta would be significant, considering the companies' history of disagreements over emerging tech issues.

While these talks are not yet finalized and could potentially fall through, successful integration with Apple's platform could lead to billions of dollars in revenue for AI companies, according to Gene Munster, a longtime Apple analyst and managing partner at Deepwater Asset Management.

Why It Matters: The potential partnership between Apple and Meta signals a shift in the tech industry, with companies traditionally seen as competitors now exploring collaborations in the AI space. This could pave the way for future partnerships and integrations, potentially reshaping the AI landscape and driving innovation.

The move also underscores Apple's commitment to enhancing its AI capabilities and providing its customers with a range of AI options.

This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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