Meta Unveils Dream Glasses 'Orion'

A Blow to Apple's Goggle-Type 'Vision Pro'

Another Edge Following Open-Source AI 'LLaMA'

Continued Collaboration with Nvidia... Apple on Alert

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At the end of September, during the 'Connect' event held at Meta's headquarters in Menlo Park, California, CEO Mark Zuckerberg took the stage. After introducing the new 'Quest' virtual reality (VR) device, he suddenly began to talk about glasses.

It didn't take long for those glasses to elicit gasps from the audience. Zuckerberg demonstrated the main features of Orion. When looking at a building, information was overlaid in real time, and foreign language signs were automatically translated. When looking at grocery packaging, it even suggested recipes that could be made with the ingredients. At this point, it was not just augmented reality (AR), but the emergence of 'next-level' glasses combining AR and AI.

"Orion is not just a device. This is a revolution that will fundamentally change the way we see the world," Zuckerberg said. He continued, "Until now, AR has been about headsets, goggles, and helmets, but Orion is the real world overlaid with holograms." Zuckerberg also stated, "You should think of these glasses as a time machine."

While excitement for the highly anticipated Apple iPhone 16 cooled due to delays in its 'Apple Intelligence' AI integration, Meta launched its new AR device. Although Apple and Nvidia have slowed their progress amid the so-called 'AI winter' controversy, Meta is seeking a dramatic turnaround with its open-source AI 'LLaMA' and now its AR device. Underlying this is a battle of pride between Apple CEO Tim Cook and Meta CEO Mark Zuckerberg.

Meta's stock price has recently been hitting all-time highs. While Apple and Nvidia initially took the lead in the AI race, Meta now appears to have a clear advantage. Of course, there is still a significant gap in corporate value between Apple, Nvidia, and Meta. Apple and Nvidia each boast a market capitalization of around $3 trillion, while Meta lags behind at about $1.4 trillion. However, the gap continues to narrow. Compared to Apple, Meta is less profitable and must pay Nvidia enormous sums for AI investment.

Interestingly, while Meta continues to provoke Apple, it maintains a friendly relationship with Nvidia.

Meta, which owns killer apps like Facebook, Instagram, and WhatsApp, faces a challenge in Apple's iPhone platform. Apple has already dealt a critical blow to Meta's services in the past.

The IT industry agrees that the announcement of Orion has reignited the long-standing rivalry between Apple and Meta. The competition between Apple and Meta goes beyond products, representing a philosophical divide over the digital future. Orion, though still a prototype with no set release date, has made it clear that Apple should be on alert.

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Apple CEO Tim Cook has long emphasized privacy and a closed ecosystem. In contrast, Zuckerberg advocates openness and connectivity. This difference is also evident in their approach to AR technology. In July, during a conversation with Nvidia CEO Jensen Huang, Zuckerberg even used profanity while discussing Apple, shocking Huang. This demonstrated the depth of his resentment toward Apple.

In particular, the fact that Meta has prepared a counterattack to Apple's ambitious AI and next-generation product, Vision Pro, is highly significant.

The conflict between the two companies intensified in 2021 when Apple introduced the App Tracking Transparency (ATT) policy. This policy prohibited apps from tracking user data across other companies' apps or websites without user consent.

Although Apple cited user privacy as the reason, for companies earning massive advertising revenue through apps installed on iPhones, it was like a bolt from the blue. The prime example is Meta. Since most of Meta's revenue comes from targeted advertising, the effectiveness of ads dropped significantly due to ATT. Zuckerberg strongly protested this, and Meta's stock price plummeted. He said, "Apple is using its control over its platform to restrict competition. This harms the entire internet economy."

Cook, focused on privacy, explained his position from the consumer's perspective. He countered, "Users' data belongs to them, and transparency and user control are fundamental rights."

Now, the second battle is being fought over AI. The debate centers on whether to adopt Apple's closed approach or Meta's open model.

Meta actively supports open-source AI models. Zuckerberg insists, "The future of AI must be open," and released its large language model (LLM), 'LLaMA,' as open source. This was clearly aimed at Apple.

Apple, on the other hand, is focused on developing its own AI technology and maintaining a closed ecosystem. Apple installs its own small LLM on the iPhone, and for questions it cannot answer, it relies on OpenAI's ChatGPT. In this process, OpenAI has been reduced to a supplier of apps through Apple. OpenAI CEO Sam Altman was not allowed to take the stage at Apple's event and had to sit in the audience.

On July 29 (local time), Jensen Huang, CEO of Nvidia (left), and Mark Zuckerberg, CEO of Meta, greeted each other at SIGGRAPH 2024, the premier conference on computer graphics and interactive technologies, held at the Colorado Convention Center in Denver, USA.
[Image source=AP Yonhap News]

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Amid this competitive landscape, Meta is strengthening its partnership with Nvidia. Nvidia's cutting-edge GPUs play a critical role in Meta's AI development. Meta recently placed a massive order for Nvidia's H100 GPUs. Jensen Huang, who has been enjoying a 'bromance' with Zuckerberg, said, "Together with Meta, we are opening a new frontier in AI. Meta's innovative vision and Nvidia's technology are coming together to make the unimaginable a reality." Huang also appeared in a video released by Meta, demonstrating Orion directly to the public.

Apple does not have a partnership with Nvidia. Its proprietary AI was built not with Nvidia's GPUs, but by borrowing Google's TPU chips. Apple and Nvidia have been in conflict since 2010. Naturally, Nvidia's attention is focused on Meta. With Nvidia's support and Meta's bold investments, they are hitting home runs one after another. Although OpenAI remains a powerful market leader, the competition among big tech companies?especially between Apple and Meta?suggests that Nvidia's involvement marks the beginning of a new triangular rivalry.