Is Apple's 20 billion dollars in revenue at risk after stripping away Google's default search partnership?
The US Department of Justice has requested Google to terminate its default search partnership with Apple. Analysts predict that if this proposal is accepted, Apple could potentially face a significant revenue loss of up to $20 billion. As the implementation of this change may take several years, Apple is actively seeking new revenue sources to compensate for the potential losses. 
According to a report by The Wall Street Journal, Apple has shifted its focus to the field of AI and is exploring collaborations with multiple AI companies. Apple's AI system, "Apple Intelligence," is set to be integrated across all Apple devices, allowing access to third-party AI systems. Given Apple's extensive user base, the company has various methods to profit from partnerships with third-party entities.
Exploring AI Collaborations
Apple, although a latecomer in the generative AI field, has begun developing small AI models and intends to partner with companies to handle more complex tasks. At a recent global developer conference, Apple announced its collaboration with OpenAI's ChatGPT, making it the first partner of "Apple Intelligence" with plans to integrate Google's ChatGPT competitor, "Gemini." Additionally, Apple is in discussions with AI startups like Anthropic and Perplexity to integrate their generative AI into Apple Intelligence. 
Craig Federighi, Apple's head of software, highlights the importance of providing multiple AI options to cater to users' preferences for different tasks. Apple aims to improve user experience by integrating a variety of AI services.
Potential Revenue Sources
During discussions with AI companies, Apple has explored the possibility of sharing subscription revenue through "Apple Intelligence." This model would allow AI companies to sell their services to users through Apple's platform, with Apple taking a percentage of the subscription fees. While these discussions are ongoing, the financial benefits and final agreements remain uncertain. 
Analysts project that collaboration with Apple could significantly increase the usage of AI services like ChatGPT. This partnership could lead to substantial revenue growth for AI companies, with estimates suggesting potential earnings in the hundreds of millions of dollars.
Apple and Meta Collaboration
Apple's discussions with Meta to integrate Meta's generative AI models into the "Apple Intelligence" system reflect the formation of unlikely alliances among tech giants in the AI era. If Apple and Meta reach a collaboration agreement, it would signify a significant reconciliation between the social media giant and the iPhone manufacturer, despite previous tensions over emerging technology issues.
Overall, Apple's strategic shifts in response to changes in its partnership landscape underscore the company's proactive approach to diversifying revenue streams and leveraging AI capabilities for future growth.
