Apple’s Influence In OpenAI’s Operations Intensifies With New Board Observer Role

Apple is all set to attain a new and significant role as a board observer at OpenAI.

The news comes weeks after Apple shocked the world by revealing a partnership with the makers of ChatGPT at this year’s WWDC.

The company's App Store head has reportedly been selected to take on the leading observership position at the AI giant. With this new role, Phil Schiller is said to take part in meetings inside the firm but will not have the authority to cast a vote or make any influential decisions, unlike other regular board members.

As per a new report published by Bloomberg yesterday, Schiller is yet to be in attendance at any board meetings. Looking back at his professional history at Apple, he had stepped down from the Cupertino firm’s marketing chief role in 2020 and soon after that, he was tasked with overlooking the development at the App Store and the vast array of latest product launches.

His selection was thanks to his mighty experience in the company, even though he had no role in the organization's latest AI product rollout.

Last month, Apple made headwaves after unveiling its partnership with OpenAI and how ChatGPT would now be a part of the latest iOS range, other than Apple’s own AI features that it likes to call Apple Intelligence.

For now, the current collaboration between both organizations doesn’t seem to involve any monetary exchange but that could soon change.

We are already aware of how software giant Microsoft also has a similar observership role in the firm that might give rise to new friction between it and Apple. After all, both companies are arch-rivals in the tech sector.

Without any doubt, a lot of board meetings at the firm would end up dealing with issues linked to Microsoft and how its arrangement inside the organization might get impacted as a result of that. We might even see the software giant send out requests for Schiller’s exclusion from sensitive meetings.

The new partnership between OpenAI and Apple is certainly going to pave the way for consumers to get a highly demanded chatbot and at the same time, enable a wide range of revenue possibilities soon. With paid variants, Apple could attain compensation like App Store fees through which it could start benefiting again.

In exchange, we would soon see a massive rise in subscriptions for OpenAI as its user base undergoes an expansion with a great interest in AI and other offerings, thanks to LLMs.

Just yesterday, another report from Bloomberg’s Mark Gurman hinted at how Apple might be keen on making another similar strategic working partnership with Google’s Gemini but no timeframe for that has been announced so far but predictions for this fall are going strong.

We are already seeing Apple working hard to attain agreements with local firms in China that have approvals for both LLM and AI tech. For now, two partners that could potentially be a part of Apple from that region include Alibaba and Baidu as the push to enter the AI race heats up.

Image: DIW-Aigen

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