The new arrangement – set to take effect later this year – will see Apple’s long-time marketing chief turned Apple Fellow, Phil Schiller, representing the company in this capacity.

According to Bloomberg, Apple’s position on the OpenAI board will mirror that of Microsoft—the AI company’s largest backer and primary technology provider.

While Schiller will be able to attend board meetings, he will not have voting power or other director privileges. However, this role will grant Apple valuable insights into OpenAI’s decision-making processes.

The partnership between Apple and OpenAI, announced at WWDC in June, will bring ChatGPT integration to iOS 18 as part of the Apple Intelligence suite of features.

Notably, this collaboration does not involve any financial exchange between the two companies. Apple reportedly views the exposure given to ChatGPT in iOS 18 as “of equal or greater value” than monetary compensation, while OpenAI benefits from the reach of Apple’s platforms.

Bloomberg’s report indicates that Schiller “hasn’t yet attended any meetings” of the OpenAI board, and “details of the situation could still change.” This cautious approach suggests that both companies are carefully navigating this new relationship.

Schiller’s appointment to this role is particularly noteworthy given his extensive experience and current responsibilities at Apple.

Since transitioning to an Apple Fellow role in 2020, Schiller has continued to lead the App Store and Apple events, reporting directly to CEO Tim Cook. He has also been at the forefront of Apple’s efforts to defend the App Store against global antitrust allegations.

By securing a seat at OpenAI’s table, even in an observer capacity, Apple positions itself to gain valuable insights into one of the leading AI research organisations.

(Photo by Daniel McCullough)

See also: EU probes Microsoft-OpenAI and Google-Samsung AI deals

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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Sources familiar with the talks have revealed that Apple has also been considering partnerships with startups Anthropic and Perplexity to integrate their generative AI technologies. This coming together of major players in the tech industry and groundbreaking startups signifies a pivotal moment in AI. 

For years, we’ve watched tech behemoths like Apple, Google, and Meta (formerly Facebook) fiercely guard their technological advancements, treating their innovations as closely held trade secrets. This approach has driven competition and spurred rapid progress but has also led to fragmentation and inefficiencies in the broader tech ecosystem.

As we embark on the next generation of AI technologies, these tech giants are starting to see that there is much more to gain from collaborating. Given their intense rivalry and divergent philosophies about user privacy and data use, the hypothetical Apple-Meta partnership is notable.

This unexpected alliance begs the question: What has changed? The answer lies in the breathtaking pace of AI advancement and the realisation that no single company can go alone in this new frontier, no matter how large or innovative. Generative AI, in particular, represents a paradigm shift in computing, fundamentally reimagining our interaction with technology. Its vast implications and numerous applications push tech giants beyond their comfort zones.

By potentially integrating Meta’s generative AI into Apple Intelligence, Apple acknowledges that hardware and traditional software expertise alone can’t secure AI leadership. Meta’s openness to sharing its AI with a competitor suggests it values widespread adoption over exclusivity.

For consumers, this collaboration promises a new era of intelligent digital interactions. Imagine an AI system that responds to your needs with unprecedented accuracy and anticipates and adapts to your preferences. This integration could transform user engagement, making technology an even more intuitive part of daily life.

Notably, Apple’s commitment to privacy adds a layer of trust to these advancements, addressing a key concern in today’s digital landscape. In short, users can expect sophisticated AI features without compromising their personal information. The inclusion of AI startups like Anthropic and Perplexity in these discussions is equally significant. 

It demonstrates that innovative ideas and cutting-edge research are not the sole domain of established tech giants in the rapidly evolving field of AI. These startups bring fresh perspectives and specialised expertise that could prove crucial in developing more advanced and ethically sound AI systems.

This open approach may drive AI development and deployment faster in places we have never seen before. Imagine Siri understanding and speaking multiple languages simultaneously with the power of Apple’s natural language processing software, Meta’s billions of users’ social interactions data, Anthropic’s AI safety lens and frankly unbeatable problem solving through Perplexity. 

This might lead to an AI assistant that is not only more powerful – is not just more advanced and capacious as a system, but also one that has depth, ethics, high fidelity model inferences about human needs.

What about ethical considerations and regulatory challenges?

The integration of powerful generative AI models into widely used platforms like Apple’s raises important ethical and regulatory questions. Issues such as data privacy, algorithmic bias, and the potential misuse of AI-generated content need careful consideration. Will this further centralise tech power among the existing few, or open new doors for startups and other smaller players? Most important of all, how do we proceed with the development and deployment of these AI systems responsibly, with built in mechanisms to safely guard against misuse?

As we attempt to do so in uncharted waters, it’s increasingly obvious that regulators and policymakers will have a major role to play in having to weigh incentives for innovation against public interests. Perhaps, it may even require creating new data sharing structures, AI governance practices and ways for companies to work together – that which reside beyond today’s antitrust and data protection laws.

See also: Mark Zuckerberg: AI will be built into all of Meta’s products

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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According to a Bloomberg report by Mark Gurman, “Apple isn’t paying OpenAI as part of the partnership.”

Instead, the Cupertino-based company is leveraging its massive user base and device ecosystem as currency.

“Apple believes pushing OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments,” Gurman’s sources explained.

Gurman notes that OpenAI could find a silver lining by encouraging Apple users to subscribe to ChatGPT Plus, priced at $20 per month. If subscribers sign up through Apple devices, the iPhone maker will likely even claim a commission.

Apple’s AI strategy extends beyond OpenAI. The company is reportedly in talks to offer Google’s Gemini chatbot as an additional option later this year, signalling its intent to provide users with diverse AI experiences without necessarily having to make such major investments itself.

The long-term vision for Apple involves capturing a slice of the revenue generated from monetising chatbot results on its operating systems. This move anticipates a shift in user behaviour, with more people relying on AI assistants rather than traditional search engines like Google.

While Apple’s AI plans are ambitious, challenges remain. The report highlights that the company has yet to secure a deal with a local Chinese provider for chatbot features, though discussions with local firms like Baidu and Alibaba are underway. Initially, Apple Intelligence will be limited to US English, with expanded language support planned for the following year.

The Apple-OpenAI deal represents a novel approach to collaboration in the AI space, where brand exposure and technological integration are valued as much as, if not more than, direct financial compensation.

See also: Musk ends OpenAI lawsuit while slamming Apple’s ChatGPT plans

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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Musk had initially sued OpenAI in March 2024, alleging breach of contracts, unfair business practices, and failure in fiduciary duty. He claimed that his contributions to the company were made “in exchange for and in reliance on promises that those assets were irrevocably dedicated to building AI for public benefit, with only safety as a countervailing concern.”

The lawsuit sought remedies for “breach of contract, promissory estoppel, breach of fiduciary duty, unfair business practices, and accounting,” as well as specific performance, restitution, and damages.

However, Musk’s filings to withdraw the case provided no explanation for abandoning the lawsuit. OpenAI had previously called Musk’s claims “incoherent” and that his inability to produce a contract made his breach claims difficult to prove, stating that documents provided by Musk “contradict his allegations as to the alleged terms of the agreement.”

The withdrawal of the lawsuit comes at a time when Musk is strongly opposing Apple’s plans to integrate ChatGPT into its operating systems.

During Apple’s keynote event announcing Apple Intelligence for iOS 18, iPadOS 18, and macOS Sequoia, Musk threatened to ban Apple devices from his companies, calling the integration “an unacceptable security violation.”

Despite assurances from Apple and OpenAI that user data would only be shared with explicit consent and that interactions would be secure, Musk questioned Apple’s ability to ensure data security, stating, “Apple has no clue what’s actually going on once they hand your data over to OpenAI. They’re selling you down the river.”

Since bringing the lawsuit against OpenAI, Musk has also created his own AI company, xAI, and secured over $6 billion in funding for his plans to advance the Grok chatbot on his social network, X.

While Musk’s reasoning for dropping the OpenAI lawsuit remains unclear, his actions suggest a potential shift in focus towards advancing his own AI endeavours while continuing to vocalise his criticism of OpenAI through social media rather than the courts.

See also: DuckDuckGo releases portal giving private access to AI models

Want to learn more about AI and big data from industry leaders? Check out AI & Big Data Expo taking place in Amsterdam, California, and London. The comprehensive event is co-located with other leading events including Intelligent Automation Conference, BlockX, Digital Transformation Week, and Cyber Security & Cloud Expo.

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