In a landmark announcement at the WWDC 2024, Apple unveiled its partnership with OpenAI, opening doors to the potential integration of OpenAI's technology with millions of iPhone users. However, in a surprising twist, it was revealed that Apple wouldn’t be compensating OpenAI for incorporating its technology into iOS 18.
Phil Schiller Appointed as Observer
A recent report by Bloomberg’s Mark Gurman has disclosed that as part of this partnership, Apple has secured an observer role at OpenAI. Phil Schiller, the head of Apple’s App Store and former marketing chief, has been appointed to this position. In this capacity, Schiller will attend OpenAI board meetings but will not possess voting rights on board decisions. Schiller, who transitioned to an "Apple Fellow" role in 2020, continues to oversee the App Store and Apple’s product launch events. He also serves as a director at medical technology company Illumina Inc.
Implications of the Partnership
This move places Apple in a unique position akin to that of Microsoft, another key player in the AI space and a significant investor in OpenAI. Despite being a competitor in the PC market, Microsoft has previously engaged in strategic deals with Apple, such as proposing to replace Google as the default search engine on iPhones.
Gurman highlights potential conflicts arising from this new dynamic, especially if AI initiatives involving both Microsoft and OpenAI are discussed during board meetings. Nevertheless, board members are expected to recuse themselves from sensitive discussions to mitigate any conflicts of interest.
Microsoft's significant $13 billion investment in OpenAI, coupled with its provision of essential cloud and computing resources, underscores the high stakes involved as Apple steps into this collaborative landscape.
Future Prospects
As the tech industry watches closely, Apple's observer role at OpenAI could herald new developments in AI technology integration within iOS, setting the stage for exciting innovations in the upcoming iOS 18.
Inputs by Agencies
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