😘 Apple wants a minute with Meta

What’s going on here?

Apple has reportedly been considering integrating Meta’s Llama 3 AI model into its products, proving that there’s a thin line between love and hate.

What does this mean?

Apple has tinkered with its own AI models. But determined to catch up to its more technologically able rivals, the company is partnering up to access more sophisticated ones. Apple’s already buddied up with OpenAI’s ChatGPT, and this latest move would see Meta’s AI service used in iPhones and the like. Apple’s also been chatting to Google, Anthropic, and Perplexity. If those plans pan out, the firm will save billions in development costs, while still being able to offer customers a range of AI models and services. It’s a smart move for Apple to keep its options open, as no one knows which model will be the market leader in five or ten years.

Why should I care?

For markets: Competitors become collaborators.

Apple and Meta have had it out before, even taking fights around privacy settings and advertising dollars to court. But clearly, a mutually beneficial agreement is enough to make them bury the hatchet. See, Apple wants other companies to offer it their AI models for free. In return, partners would get their names in the roughly two billion active Apple devices around the world. On top of that, if any AI providers can sell premium versions of their services, Apple would take a cut of the subscriptions.

The bigger picture: Tied up in knots.

Beyond the US, the picture is a bit murkier for Apple. ChatGPT isn’t available in China – a massive market for tech companies – so the firm is looking for a local partner in the country. And in Europe, Apple is concerned about complying with the region’s Digital Markets Act, which it says would reduce the security of its products and services. So much so, in fact, that the company plans to withhold its AI offering, Apple Intelligence, in Europe this year.

What’s going on here?

Copper prices have started falling from their record highs, as Chinese buyers saw their resilience challenged.

What does this mean?

Copper hit a record high of $11,100 a ton last month, fueled by optimistic investors betting that the generally high-in-demand metal would stay scarce and, in turn, expensive. But while copper’s price is still relatively lofty, it has dropped nearly 13% from that peak. That’s because Chinese buyers are contending with stalling property and industrial sectors, so they don’t need to stock up on so much of the shiny stuff. As a result, warehouses in the country are full of unsold copper, marking the biggest surplus in four years. And as the golden rule goes, the more there is of something, the cheaper it tends to be.

Why should I care?

Zooming out: Welcome to the new world.

China usually accounts for more than half of global copper demand. So if the country’s buyers resume their old habits, some traders believe we’ll see a new record price later in the year. But if not, that might signal serious demand issues, which could send the metal’s price down even further. Look further ahead, though, and there will be more influences at play. The global shift toward clean energy should push up demand, as extra copper will be used to bolster the infrastructure around transport electrification, 5G, and AI.

The bigger picture: The surplus won’t last.

Unless billions are thrown into production, there might not be enough copper to go around in the years ahead. One hedge fund is even predicting that prices could hit $40,000 in that case. That would be the cue for stocked-up Chinese suppliers to sell their lot. And the mere prospect explains why mining company BHP wants to snap up rival Anglo American, eager to cover more copper-covered ground.