Apple Joins OpenAI Board

According to sources familiar with the matter, it has been reported by Bloomberg that Phil Schiller, a long-time Apple executive, is expected to be invited to serve as an observer on the board of OpenAI.

This appointment comes after Apple’s collaboration with OpenAI to incorporate ChatGPT into Apple Intelligence, which is slated to launch on iOS 18, iPadOS 18, and macOS Sequoia in the upcoming fall.

Apple Joins OpenAI Board

Schiller, Apple’s former SVP of worldwide marketing, now heads the App Store and Apple Events. He is known for his famous remark “Can’t innovate anymore, my ass” during the introduction of the ‘trashcan’ Mac Pro in 2013.

In 2016, Schiller also gained attention for describing Apple’s decision to remove the headphone jack in the iPhone 7 as an act of “courage.”

Phil Schiller is set to join the OpenAI board alongside Microsoft executive Dee Templeton, who will serve as a nonvoting observer.

Given Microsoft’s significant investment in OpenAI, it is likely that the company may not be pleased to see Schiller involved in board meetings.

There have been reports indicating that Microsoft is concerned about the potential impact of a partnership between Apple and OpenAI on its Azure infrastructure and the broader generative AI market.

In a multi-billion dollar investment in OpenAI, Microsoft secured an exclusive license for GPT-4 and other OpenAI models, using the technology to develop various Copilot products.

In contrast, Apple has formed a unique partnership with OpenAI, creating its own AI models that prioritize privacy by running locally.

However, the personal intelligence system can also tap into larger server-based models for more complex tasks. Siri and Apple Intelligence’s Writing Tools will incorporate OpenAI’s ChatGPT, with users having control over its usage.

Reportedly, Apple is seeking to incorporate additional third-party AI models such as Google Gemini into Apple Intelligence.

Bloomberg reports that the company successfully persuaded OpenAI to forgo payment for integrating ChatGPT into Apple Intelligence.

Apple’s argument was that OpenAI could potentially generate revenue from the large number of Apple Intelligence users who might eventually sign up for paid ChatGPT subscriptions.

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