Apple and OpenAI have reportedly sealed a deal to integrate OpenAI’s cutting-edge generative AI technology into Apple’s software ecosystem. This partnership, reported by The Information through conversations of a “source” with none other than OpenAI CEO Sam Altman himself, promises to revolutionise Apple’s AI capabilities and potentially generate substantial revenue for OpenAI.
The agreement, which Bloomberg had previously hinted was imminent, marks the culmination of Altman’s longstanding ambition to embed OpenAI’s conversational AI within Apple’s products. If successful, this integration could yield billions of dollars for the AI startup, underscoring the high stakes of this venture.
“Now, [Altman] has fulfilled a longtime goal by striking a deal with Apple to use OpenAI’s conversational artificial intelligence in its products, which could be worth billions of dollars to the startup if it goes well,” the source was quoted as saying by The Information.
However, the deal has not been without its share of internal resistance, it seems. John Giannandrea, Apple’s head of machine learning, has voiced strong opposition to the inclusion of large language model-driven chatbots in Apple products. Giannandrea’s skepticism is rooted in his belief that consumers do not need another AI chatbot, a sentiment he reportedly conveyed to Apple employees when questioned about the company’s AI strategy. Despite this, there are indications that Apple might explore alternative applications of large language models beyond standalone chatbots.
The partnership has also raised concerns at Microsoft. CEO Satya Nadella is wary of the implications for Microsoft’s existing collaboration with OpenAI. Microsoft has invested a staggering USD 13 billion in OpenAI, securing rights to a share of its profits and the use of its technology in Microsoft’s enterprise and consumer products. The new deal with Apple could potentially strain this relationship, given the overlapping interests in AI advancements.
Despite internal and external concerns, Apple appears set to experiment with OpenAI’s technology in innovative ways. One such initiative involves using OpenAI’s API to enhance Siri’s capabilities, allowing it to answer questions beyond its typical range. This proof of concept hints at a broader strategy to leverage large language models in a manner that complements existing Apple technologies, rather than simply introducing another chatbot.
As Apple and OpenAI navigate this partnership, transparency will be key. The Information reports that Apple plans to clearly indicate when it utilises third-party AI, similar to how it flags queries that default to Google searches. This approach aims to maintain user trust while integrating advanced AI functionalities.
Apple is set to announce its latest AI innovations at WWDC 2024 on June 10. A notable announcement is expected to be a partnership with OpenAI, which will see deeper integration of ChatGPT into Apple’s operating systems. Additionally, Apple is reportedly negotiating with Google for integration with its Gemini AI, and talks with Anthropic are also underway.
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