Key takeaways:
- Apple and Microsoft both will get board observer positions at OpenAI. Their founders famously clashed: Steve Jobs and Bill Gates, respectively.
- Apple is embedding OpenAI’s generative AI throughout all its latest devices, but no money exchanged hands. Microsoft invested $13 billion in OpenAI for the same privilege.
- The Apple deal potentially is worth billions to OpenAI. Google paid Apple $20 billion in 2022 to be its default search engine.
On the heels of Apple’s partnership with OpenAI, the iPhone maker reportedly dispatched a top executive to join the startup’s board – effective later this year.
According to Bloomberg, Apple’s App Store head and former marketing chief Phil Schiller will act as an observer on the board, matching the position of long-time rival Microsoft, which also has a board observer position.
As observers, Apple and Microsoft can attend board meetings but cannot vote nor exercise the responsibilities of typical directors. This development could bode for awkward board meetings, given the antagonistic history between the two tech companies’ founders (Steve Jobs and Bill Gates).
An alliance worth billions?
Last month, Apple announced an alliance with OpenAI that will see its generative AI technology embedded in iOS and macOS for all its devices as well as Siri. Apple calls it “Apple Intelligence.”
The Apple-OpenAI partnership reportedly did not involve any money exchanging hands. However, Microsoft invested $13 billion in OpenAI for the right to use its generative AI models in its Microsoft 365 office productivity suite and Azure cloud service.
OpenAI’s access to Apple users is potentially worth billions. Google, which powers Apple’s search on Safari, paid $20 billion in 2022 for the privilege, according to court documents from a federal antitrust lawsuit.
Apple is offering AI only in its latest gadgets, starting with the iPhone 15 Pro, iPhone 15 Pro Max, and iPad and Mac with M1 and newer chips. At present, Apple has 2.2 billion active devices worldwide.
