Apple will acquire an observer role on OpenAI’s board under a recently announced agreement, strengthening the connection between the companies, reports Bloomberg’s reliable Mark Gurman, citing anonymous sources.
Veteran Apple executive from the Steve Jobs era, Phil Schiller, who oversees Apple’s App Store and formerly led marketing, has been appointed to the position, sources familiar with the situation stated.
The role of board observer is not a full-fledged director, says sources. This board arrangement is set to take effect later this year, and Schiller has not yet participated in any meetings. Sources noted that details could still change.
This development follows Apple’s WWDC announcement to integrate ChatGPT into iPhones, iPads, and Macs as part of new AI features. The observer role places Apple alongside Microsoft, OpenAI’s major backer and primary AI technology provider.
Board observers gain insights into company decisions but often leave meetings during sensitive discussions.
The inclusion of both Microsoft and Apple in OpenAI’s board meetings may pose challenges, given their longstanding rivalry and partnership. Some meetings will likely cover future AI initiatives between OpenAI and Microsoft, potentially requiring Schiller to step out.
The OpenAI integration is part of Apple’s broader AI strategy, which includes Apple Intelligence, a suite of in-house features. These features summarize articles and notifications, create custom emojis and images, and transcribe voice memos. A revamped version of Siri, Apple’s digital assistant, is expected, with enhancements due next year.
But, Apple Intelligence will require an iPhone 15 Pro series phone or newer. Only iPads and Macs with M1 chips or newer will support the latest AI features. This is Apple’s play to get customers to upgrade to newer devices, as on-device AI computing requires more RAM.
It’s a symbiotic relationship between Apple and the ChatGPT founder. OpenAI gains access to millions of users, while Apple benefits from a chatbot feature that could generate App Store fees.
Apple is in talks with Google and startup Anthropic to offer additional chatbots, and with Baidu and Alibaba to bring AI features to devices in China. Apple Intelligence will launch first in American English, with plans for a global rollout.
Want to see more of our stories on Google?
P.S. Want to keep this site truly independent? Support us by buying us a beer, treating us to a coffee, or shopping through Amazon here. Links in this post are affiliate links, so we earn a tiny commission at no charge to you. Thanks for supporting independent Canadian media!
