Apple secures observer role on OpenAI board as part of AI pact – Bloomberg
2024.07.02 17:24
Investing.com – Phil Schiller, Apple’s App Store head and former marketing chief, is set to take on an observer role on OpenAI’s board according to Bloomberg, in a significant development that augments the collaboration between Apple Inc (NASDAQ:). and OpenAI.
This move comes as part of the landmark agreement announced last month, which further strengthens the relationship between these two tech behemoths.
Although Schiller’s role as a board observer will not grant him full directorial powers, it will provide valuable insights into the decision-making process at OpenAI. This arrangement is expected to take effect later this year, and it will place Apple on an equal footing with Microsoft Corp (NASDAQ:)., OpenAI’s primary AI technology provider and its most significant supporter.
This development follows Apple’s June announcement that it would integrate ChatGPT into its iPhone, iPad, and Mac devices as part of a comprehensive suite of artificial intelligence features.
However, Schiller’s new position could potentially complicate matters for both Apple and Microsoft, given their long history of rivalry and partnership. OpenAI board meetings discussing future AI initiatives involving Microsoft could present sensitive scenarios that might necessitate Schiller’s exclusion.
Despite not leading Apple’s artificial intelligence initiatives, Schiller’s long-standing role as a custodian of the company’s brand makes him an apt choice for the observer position. Currently titled as Apple Fellow, Schiller’s responsibilities span overseeing the App Store and managing the company’s product launch events.
The partnership with OpenAI represents a significant stride for Apple, aligning it with a leading and influential AI startup. However, OpenAI is not without its share of controversies, including the temporary ousting of CEO Sam Altman over transparency issues with the board and criticism over downplaying AI safety concerns.
This collaboration is a part of Apple’s broader AI strategy, which also includes in-house features under Apple Intelligence. These features range from summarizing articles and notifications, creating custom emojis and images, to transcribing voice memos.
While this partnership does not currently involve a financial arrangement, it provides OpenAI with access to hundreds of millions of potential users. In return, Apple acquires a chatbot feature that is in high demand among consumers. The agreement also enables users to access a paid version of ChatGPT on Apple devices, potentially generating App Store fees for Apple.
Apple is also in talks with Google (NASDAQ:), startup Anthropic, Baidu Inc (NASDAQ:)., and Alibaba (NYSE:) to offer additional chatbots and bring its AI features to devices in China. The roll-out of Apple Intelligence is set to initially be in American English, followed by an international launch.
