Elon Musk warns that a newly announced partnership between tech titans Apple and Google risks creating an excessive concentration of power in the artificial intelligence ecosystem.
In a joint statement, Apple and Google confirm a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google’s Gemini models and cloud technology, helping power future Apple Intelligence features, including a more personalized Siri.
“After careful evaluation, Apple determined that Google’s Al technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users. Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple’s industry-leading privacy standards.”
Musk responds to the announcement, noting that the deal further consolidates influence within a single company that already dominates multiple layers of the technology stack.
“This seems like an unreasonable concentration of power for Google, given that they also have Android and Chrome.”
Dan Ives, Wedbush’s managing director and senior equity research analyst, predicted the partnership between Apple and Google. In an investor note shared on X, Ives said “Google Gemini will be the exclusive partner for Apple’s AI strategy” following the DOJ antitrust ruling. Ives also predicted that the partnership will be one of the three catalysts that will send Apple (AAPL) to Wedbush’s price target of $350.
At time of publishing, AAPL is valued at $269.
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