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Report: Apple and OpenAI have signed a deal to partner on AI

May 31, 2024 - arstechnica.com
Apple and OpenAI have reportedly struck a deal to incorporate OpenAI's generative AI technology into Apple's software, according to a source cited by The Information. The deal, which could be worth billions to OpenAI if successful, has faced opposition from Apple's head of machine learning, John Giannandrea, and Microsoft CEO Satya Nadella, who is concerned about the implications for OpenAI's existing relationship with Microsoft. Despite this, Apple has been using OpenAI's API to create proofs of concept, such as a version of Siri that can respond to questions outside its usual scope.

The report also suggests that OpenAI's CEO, Sam Altman, is seeking to change the company's structure. Currently, OpenAI operates as a for-profit corporation accountable to a nonprofit organization. Altman and his allies are reportedly considering transforming it into a traditional for-profit corporation or a benefit corporation (B-Corp), which would allow the company to pursue goals beyond shareholder interest.

Key takeaways:

  • Apple and OpenAI have made a deal to include OpenAI's generative AI technology in Apple's software, a move that could be worth billions to OpenAI if successful.
  • Apple's head of machine learning, John Giannandrea, has reportedly been opposed to large language model-driven chatbots appearing in Apple's software or products.
  • Microsoft CEO Satya Nadella is concerned about what the Apple deal means for OpenAI's existing relationship with Microsoft, which has committed $13 billion to OpenAI.
  • OpenAI, currently structured as a for-profit corporation beholden to a nonprofit organization, may be converted into a traditional for-profit corporation or a benefit corporation (B-Corp) according to plans by CEO Sam Altman and his allies.
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