Meta and Apple Seen as Game-Changers in AI Arms Race

Dan Ives, partner at Yorkville, believes that Meta Platforms (META) and Apple (AAPL) are well-positioned to drive the next phase of the artificial intelligence boom. He calls Meta's Muse AI a 'game changer' and sees Apple as a major beneficiary in the consumer market.

META's massive user base, with 3.5 billion users across its platforms, gives it an existing audience for AI products without having to build one from scratch, Ives says. This advantage is significant because Meta has been spending billions of dollars on AI infrastructure, and investors had underestimated what the company could accomplish.

Ives also estimates that the industry is only about 15% of the way through the spending required for AI adoption, with the chip market potentially taking until 2028 or 2029 to reach equilibrium. He sees Meta and Apple as demonstrating why established technology companies should not be dismissed in the AI arms race.

Muse could help move AI beyond early adopters and enterprise users by giving consumers a more familiar way to interact with the technology, Ives says. This is significant because users who are not ready to adopt products from companies like Anthropic may be more willing to use AI through platforms they already know.