Apple and Meta in Focus After Reportedly Discussing Generative AI Partnership

iPhone maker Apple (AAPL) has held discussions with its big tech rival Meta Platforms (META) to integrate the Facebook parent’s generative artificial intelligence (AI) model into its recently announced personalized AI system, Apple Intelligence, The Wall Street Journal reported on Sunday.

Such a deal would allow Meta to leverage Apple’s vast distribution of users through its iPhones, similar to how software companies gain exposure to millions of potential customers through the tech behemoth’s App Store.

Apple, which recently partnered with ChatGPT owner OpenAI and said it wants to integrate with Google’s Gemini, has also discussed adding generative AI technology developed by

startups Anthropic and Perplexity into Apple Intelligence, people familiar with the discussion told the Journal, adding that talks held with Meta haven’t been finalized and could fall through.

In its ongoing negotiations with potential AI partners, Apple hasn’t requested payment arrangements, the report said. Rather, the partnerships could work by the companies selling premium subscriptions to their services through Apple’s massive distribution network, with the iPhone maker receiving a cut of subscription revenue.

Although forging partnerships with companies that develop generative AI would reduce Apple’s reliance on OpenAI, it remains unclear how open the iPhone maker will make its new AI platform, given the company’s preference for a highly controlled closed ecosystem.

Below, we use technical analysis to identify key levels to watch on both the Apple and Meta charts.

Apple
While the 50-day moving average crossed above the 200-day MA to form a bullish golden cross pattern around the same time Apple shares broke out to a new record high earlier this month, the price has recently retraced, increasing the likelihood for further weakness this week.

Looking ahead, investors should monitor the key $197 level, an area where the price finds support from a horizontal line linking several prominent peaks over the past eleven months.

Meta
Since gapping more than 10% lower after issuing weak revenue guidance in late April, Meta shares have continued to trend mostly higher, closing the gap and climbing back above the 50-day MA.

If the stock moves lower, investors should keep an eye on the $446 level, an area where the price may find buying interest around a multi-month horizontal line. Conversely, an upside move may run into selling pressure near the stock’s all-time high (ATH) set in early April at $531.49.