Apple is set to receive an observer role on OpenAI's board as part of a significant AI agreement. Phil Schiller, the head of Apple's App Store and former marketing chief, has been selected for the position. The board arrangement is expected to take effect later this year, and Schiller has not yet attended any meetings. As an observer, Schiller will be able to attend board meetings but will not have voting rights or other powers typically held by directors. Both Apple and OpenAI have declined to comment on the matter [530faac1].
This move further solidifies the partnership between Apple and OpenAI, following the recent announcement of their collaboration to integrate OpenAI's ChatGPT into iOS 18. The addition of Schiller as an observer on OpenAI's board will provide Apple with insights into OpenAI's operations and foster closer collaboration between the two companies. It also signifies a shift in how tech companies approach AI governance, ensuring alignment with ethical standards and industry best practices [8740aad4] [69507fff] [530faac1].
In addition to the partnership with OpenAI, Apple has also been in discussions with Meta Platforms, the parent company of Facebook, for an AI collaboration. The talks involve integrating Meta's Generative AI model into Apple's upcoming iOS, iPadOS, and macOS. This collaboration aims to enhance the AI capabilities of Apple devices and offer users a wider range of AI features. Furthermore, the discussions explore the possibility of AI companies selling premium subscriptions to their services through Apple Intelligence. However, there is no official confirmation of a deal between Apple and Meta, and the talks have not yet been finalized [5f5fa23b].
Apple is also actively seeking a Chinese AI partner to bring its Apple Intelligence AI system to China. However, China requires government approval for chatbots powered by large language models, and no AI products developed outside of China have been approved so far. Apple's integration of ChatGPT into its iPhone poses a challenge in China, as ChatGPT and similar AI services are not available there. While Apple is working to find a Chinese company to partner with for its AI features in China, no deal has been reached yet. Even if Apple finds a Chinese AI partner, it may not be ready by the time iOS 18 is released [5f5fa23b] [11af6869].
Despite the ongoing discussions and collaborations, reports suggest that the AI deal between Apple and Meta is unlikely to happen soon. The talks between the two companies reportedly took place months ago, with no progress or plans for a deal at the moment. Apple is cautious about partnering with Meta due to concerns about the company's privacy practices. As a gatekeeper between its users and various AI companies, Apple prioritizes user privacy and is careful about working with companies that may compromise it. Representatives from Apple have not commented on the matter, and Meta declined to provide a statement as well. Yann LeCun, Meta's chief AI scientist, reposted a Bloomberg story about the Apple-Meta talks and commented, 'Their loss' [5b3d50b1].
Microsoft has decided to give up its board observer seat at OpenAI, citing the significant improvement in the AI start-up's governance over the past eight months. Apple, which was expected to take an observer role on OpenAI's board, has also declined. The observer seat and Microsoft's $10 billion investment in OpenAI have raised concerns among antitrust watchdogs in Europe, Britain, and the U.S. Microsoft stated that it no longer believes its limited role as an observer is necessary due to OpenAI's new partnerships, innovation, and growing customer base. EU antitrust regulators have determined that Microsoft does not control OpenAI and will seek third-party views on the exclusivity clauses in their agreement. However, British and U.S. antitrust watchdogs still have concerns about Microsoft's influence over OpenAI and its independence. Microsoft and OpenAI are competing to sell AI technology to enterprise customers and are working to address antitrust concerns. Microsoft is also expanding its AI offerings on the Azure platform and has hired the CEO of Inflection to head its consumer AI division.
OpenAI has recently announced that it will be transitioning to a for-profit company. As a result, Microsoft and Apple will no longer serve as observers on OpenAI's board. This decision is seen as a move to ensure the independence and impartiality of OpenAI. The transition to a for-profit company has raised concerns about the potential commercialization of AI and the concentration of power in the tech industry. OpenAI has stated that it will continue to prioritize its mission of ensuring that AI benefits all of humanity [cde263b9].
In summary, Apple's partnership with OpenAI is further strengthened with Phil Schiller joining OpenAI's board as an observer. This collaboration reflects Apple's commitment to incorporating cutting-edge AI technologies into its products. Apple is also exploring collaborations with Meta Platforms and seeking a Chinese AI partner. However, the deal with Meta is unlikely to happen soon due to concerns about privacy practices. Apple continues to navigate the AI landscape, prioritizing user privacy and ethical standards [530faac1] [8740aad4] [69507fff] [5f5fa23b] [11af6869] [5b3d50b1].
OpenAI has recently announced that it will be transitioning to a for-profit company. As a result, Microsoft and Apple will no longer serve as observers on OpenAI's board. This decision is seen as a move to ensure the independence and impartiality of OpenAI. The transition to a for-profit company has raised concerns about the potential commercialization of AI and the concentration of power in the tech industry. OpenAI has stated that it will continue to prioritize its mission of ensuring that AI benefits all of humanity [cde263b9] [bac1e871].
Microsoft has decided to give up its non-voting position on the board of OpenAI, the maker of ChatGPT, as regulators increase scrutiny of AI company deals. Microsoft's $13 billion investment in OpenAI has raised concerns about its influence over the smaller partner. After a failed boardroom coup against OpenAI CEO Sam Altman, Microsoft supported Altman and briefly hired him. Microsoft's withdrawal from the board is effective immediately. The EU and British competition regulators are examining Microsoft's ties to OpenAI, and the US may launch an antitrust probe. Apple has also given up the chance to sit on OpenAI's board. The EU is seeking more information from Microsoft about its agreement with OpenAI to understand if certain exclusivity clauses harm competition. Regulators are focusing on the complex web of inter-relationships that big tech has created with AI providers and the need for careful consideration of how these arrangements are structured going forward. [dec06e10]