Apple Inc. is set to gain an observer role on OpenAI’s board as part of a groundbreaking agreement, further solidifying the partnership between the tech giant and the leading AI startup. Phil Schiller, head of Apple’s App Store and former marketing chief, has been selected for this role, which will commence later this year.
Key Takeaways
- Apple to gain an observer role on OpenAI’s board.
- Phil Schiller chosen for the observer position.
- The partnership includes integrating ChatGPT into Apple devices.
- No financial transactions involved in the agreement.
- Apple and Microsoft to have similar board observer roles at OpenAI.
Apple’s Strategic Move
Apple’s decision to secure an observer role on OpenAI’s board marks a significant step in its AI strategy. The role, which allows attendance at board meetings without voting rights, will provide Apple with valuable insights into OpenAI’s decision-making processes. This move aligns Apple with Microsoft, OpenAI’s largest backer, which also holds a similar observer position.
Phil Schiller, a veteran at Apple, will represent the company in this capacity. Although he won’t have voting rights, his presence will enable Apple to stay informed about OpenAI’s future AI initiatives and developments.
Integration of ChatGPT
The partnership between Apple and OpenAI will see the integration of ChatGPT into Apple’s iOS 18, iPadOS 18, and macOS Sequoia. This integration will enhance Apple’s AI capabilities, allowing Siri to handle more complex user requests by leveraging ChatGPT’s advanced functionalities. Users will need to grant explicit permission for Siri to utilize ChatGPT.
No Financial Transactions
Interestingly, the agreement between Apple and OpenAI does not involve any financial transactions. Instead, OpenAI gains access to Apple’s vast user base, potentially reaching hundreds of millions of users. In return, Apple benefits from incorporating a highly sought-after chatbot feature into its devices, which could drive App Store fees through paid ChatGPT subscriptions.
Potential Complications
Having both Apple and Microsoft on OpenAI’s board could introduce complexities, especially during discussions about future AI initiatives between OpenAI and Microsoft. In such cases, Schiller may be asked to recuse himself from sensitive discussions to avoid conflicts of interest.
Apple’s Broader AI Strategy
The OpenAI partnership is a crucial component of Apple’s broader AI strategy, which includes in-house features under the banner of Apple Intelligence. These features range from summarizing articles and notifications to creating custom emojis and transcribing voice memos. A revamped version of Siri is also in the works, although many enhancements are expected to roll out next year.
Future Prospects
Apple is also in talks with other AI companies, including Alphabet’s Google, startup Anthropic, Baidu, and Alibaba, to explore additional chatbot integrations. The initial rollout of Apple Intelligence will be in American English, with plans for an international expansion.
Conclusion
Apple’s observer role on OpenAI’s board signifies a strategic alliance that could shape the future of AI integration in consumer technology. With Phil Schiller at the helm, Apple is poised to gain invaluable insights and leverage OpenAI’s cutting-edge technologies to enhance its own AI offerings.
Sources
- Apple to Get OpenAI Board Observer Role as Part of AI Agreement – Bloomberg, Bloomberg.com.
- Apple’s Phil Schiller to Serve as OpenAI Board Observer as Part of iOS 18 AI Agreement – MacRumors, MacRumors.
- Apple’s Phil Schiller to reportedly join OpenAI’s board – The Verge, The Verge.
- Apple to join OpenAI’s board in observer role, Financial Times.
- Apple to get OpenAI board observer seat for integrating ChatGPT in iOS 18. Everything we know so far | Mint, mint.