Apple’s AI push seems to have a two-pronged approach
An analyst note suggests licensing Gemini from Google while developing proprietary private local models could give Apple an advantage in the AI race.
According to a JP Morgan note viewed by AppleInsider, Apple’s potential partnership with an LLM provider while developing smaller local models may help it get ahead of other manufacturers. If the reports prove true, Apple will focus on its strengths, like on-device processing, instead of building a proprietary LLM.
These news stories are complimentary, not contradictory, and the JP Morgan note suggests Apple’s two-pronged approach could give it a leg up. Apple can focus on smaller on-device models that protect user privacy rather than releasing a controversial LLM that relies on piles of data found on the web. Customers get the best of both.
If this sounds familiar, it’s a lot like Apple’s agreement with Google for search. Google gets to be the default search engine for the web, while Apple provides a powerful yet private local search tool called Spotlight.
The note focuses on Apple’s financial successes using this approach, suggesting infrastructure savings and better consumer experiences for applications. JP Morgan maintains its overweight rating for Apple with a price target of $215.
