Apple aligns with OpenAI for future AI innovations

Apple Inc. has secured an observer role on OpenAI’s board, further solidifying their growing partnership. Phil Schiller, head of Apple’s App Store and former marketing chief, will take on this position. As an observer, Schiller will attend board meetings without voting rights or other director powers. The development follows Apple’s announcement of integrating ChatGPT into its devices, such as the iPhone, iPad, and Mac, as part of its AI suite.

Aligning Apple with OpenAI’s principal backer, Microsoft Corp., the observer role offers Apple valuable insights into OpenAI’s decision-making processes. However, Microsoft and Apple’s rivalry might lead to Schiller’s exclusion from certain discussions, particularly those concerning future AI initiatives between OpenAI and Microsoft. Schiller’s extensive experience with Apple’s brand makes him a suitable candidate for this role, despite his lack of direct involvement in Apple’s AI projects.

The partnership with OpenAI is a key part of Apple’s broader AI strategy, which includes a variety of in-house features under Apple Intelligence. These features range from summarising articles and notifications to creating custom emojis and transcribing voice memos. The integration of OpenAI’s chatbot feature will meet current consumer demand, with a paid version of ChatGPT potentially generating App Store fees. No financial transactions are involved; OpenAI gains access to Apple’s vast user base while Apple benefits from the chatbot’s capabilities.

Apple is also in discussions with Alphabet Inc.’s Google, startup Anthropic, and Chinese companies Baidu Inc. and Alibaba Group Holding Ltd. to offer more chatbot options to its customers. Initially, Apple Intelligence will be available in American English, with plans for an international rollout. Furthermore, collbaoration like this marks a rare instance of an Apple executive joining the board of a major partner, highlighting the significance of this partnership in Apple’s AI strategy.