Apple might benefit from an external AI partnership, and Elon Musk’s xAI could be the ideal match, says Melius’s Ben Reitzes.
Apple’s struggles with artificial intelligence are becoming critical. It needs to do something big to be a real player in that area, and a partnership with Elon Musk’s xAI could be the ticket required, according to Melius Research.
The company recently lost one of its top AI researchers — Ruoming Pang, who led its machine-learning foundation model team — to Meta Platforms, according to The Wall Street Journal.
That means the focus is on Apple’s potential to strike a deal with an external AI partner. Melius’s Ben Reitzes says Elon Musk’s xAI could be the ally it needs.
“Apple could provide xAI with the users it needs to top [ChatGPT developer] OpenAI in return for giving Apple all the benefits of owning an LLM [large language model] without the capex,” wrote Reitzes in a research note on Monday… “Tim Cook and his team are likely to be rewarded for thinking bolder to accelerate Apple’s AI push, even if they have to step out of their comfort zone.”
MacDailyNews Take: If you’re going to with an external AI partner, why not choose the smartest one? We find xAI’s Grok to be more accurate and useful than Google’s Gemini, ChatGPT, and the rest. In his note, Reitzes reiterated his “Buy” rating and $240 target price on Apple stock.
Also of note:
We’re going to make Baby Grok @xAI, an app dedicated to kid-friendly content
— Elon Musk (@elonmusk) July 20, 2025
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
no way in hell
BOB, not the sharpest tool in the shed, wants to settle for second-best because… Elon.
BOB should be handicapping himself with a Windows PC and Android phone. It’s apropos: Handicaps for the handicapped.
That’s right, BOB, you’re a mental retard who is fed narratives by compromised outlets and who dutifully spits them back like the retarded pawn you are.
One side makes decisions based on personality in lieu of principles/progress.
Two prominent people in our current World, were successful and popular a relatively short time ago. Today, these same two are still successful, but their “popularity” has changed from favor to disfavor in-spite of progress/principle.
Who thinks like this?
xAI’s is too “hitler-ish” (see: last week) for apple to partner with them. also, Elon has added his own views at the system prompt level (instructing xAI to survey what he has said about a subject prior to responding) which also excludes xAI from serious consideration, despite its AI prowess.
Elon can do whatever he wants with his own AI company, but it’s anathema to Apple to partner with a company whose views are aligned in lockstep with a single controversial person.
I.e. it will never ever happen.
Yes, I used to think Elon was the next Steve until he let politics get in the way.
Let’s make allowances that he was on drugs when he did the modified Nazi salute. However, what’s his excuse for supporting the German Alternative for Germany (AfD) party. They are a pack of Neo Nazis who deny the Holocaust, are anti-semitic and are just a pack of revisionist low life scum.
As far I’m concerned Apple should have nothing to do with Musk. He went from being a libertarian to being a Hitler sympathiser. Great!
This would be so awesome. That all the normal leftist losers on here hate it tell you it’s great. I hope they seethe more and down vote me a lot to prove how right this is.
Telstar = “cra’y cra’y…”
Strong TDS in that moron.
🙀 🤡
moron