Analyst: Elon Musk’s xAI could be the ally Apple needs

Apple’s challenges in artificial intelligence are becoming increasingly critical. To establish itself as a significant player in this field, the company needs to make a substantial investment. According

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to Melius Research, a partnership with Elon Musk’s xAI could be the key to unlocking this potential.

Recently, Apple lost one of its top AI researchers, Ruoming Pang, who led its machine-learning foundation model team. This news was reported by The Wall Street Journal.

Given this setback, Apple is now focusing on exploring potential partnerships with external AI companies. Melius’s Ben Reitzes believes that Elon Musk’s xAI could be the ideal ally for Apple.

Reitzes outlined a potential arrangement in a research note on Monday. He suggested that Apple could provide xAI with the user base it needs to surpass OpenAI, the developer of ChatGPT, in return for gaining all the benefits of owning an LLM (large language model) without incurring significant capital expenditures. Reitzes expressed his belief that Tim Cook and his team would be rewarded for taking bolder steps to accelerate Apple’s AI initiatives, even if it means stepping out of their comfort zones.

Source: Barrons.com

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