Apple is set to take on a new role as a board observer at OpenAI, a development revealed during WWDC 2024. This move is part of a broader partnership to enhance both companies’ AI capabilities.
Apple’s head of App Store development and former marketing chief, Phil Schiller has been selected for this observer role at OpenAI. As an observer, Schiller can attend board meetings at OpenAI but won’t have the same voting rights or influence over decisions as full board members.
A report from Bloomberg, citing sources familiar with the situation, indicates that Schiller has not yet attended any OpenAI board meetings. In 2020, Schiller transitioned from his role as Apple’s marketing chief to focus on App Store development and new product launches. Despite not being directly involved in Apple’s latest AI projects, his extensive experience at Apple made him suitable for the observer position.
In June, Apple announced the integration of ChatGPT with its latest operating system updates, alongside its own AI features branded as Apple Intelligence. The partnership with OpenAI reportedly doesn’t involve any financial transactions, which likely explains Apple’s observer status. Interestingly, Microsoft also holds an observer role at OpenAI, which could create tension given the competitive nature of their relationship.
There are concerns that some OpenAI board meetings might discuss sensitive matters related to Microsoft’s involvement with the company. In such scenarios, Microsoft could request Schiller’s exclusion from these discussions.
Through this partnership with OpenAI, Apple aims to offer its users access to a highly popular chatbot, potentially opening up new revenue streams. By providing the paid version of OpenAI’s ChatGPT, Apple can benefit from App Store fees, adding to its revenue.
For OpenAI, this partnership means gaining access to Apple’s large user base, particularly those interested in AI and advanced language models. This collaboration is part of Apple’s broader push into AI, with the company also seeking similar partnerships with Google and AI startup Anthropic.
In China, Apple is exploring potential agreements with local companies with government approval for their AI and language model technologies. Possible partners include Alibaba and Baidu, as Apple plans to expand the availability of its AI features in this market.
The AI features previewed at WWDC will be available only in US English later in 2024. The international rollout of Apple Intelligence will take more time, as Apple needs to navigate various local regulations and address concerns from EU regulators to ensure compliance.
Apple’s new observer role at OpenAI is a strategic move to bolster its AI capabilities and enhance its product offerings. This partnership represents a significant step in Apple’s ongoing efforts to integrate advanced AI features into its ecosystem, promising exciting developments for its users and the tech industry.
