July 2nd, 2024

Apple poised to get OpenAI board observer role as part of AI pact

Apple Inc. strengthens ties with OpenAI by securing an observer role on the board for Phil Schiller, Apple's App Store chief. This move aligns Apple with Microsoft and marks a strategic development in Apple's AI efforts.

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Apple poised to get OpenAI board observer role as part of AI pact

Apple Inc. has secured an observer role on OpenAI's board through a recent agreement, strengthening the relationship between the two companies. Phil Schiller, Apple's App Store chief and former marketing head, has been selected for this position. While Schiller will not serve as a full director, his role as a board observer signifies a significant step in the collaboration between Apple and OpenAI. This move aligns Apple with Microsoft, which also holds a similar observer role on OpenAI's board. The agreement marks a strategic development in Apple's AI efforts, potentially influencing the direction of AI technologies within the company.

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Link Icon 11 comments
By @htrp - 10 months
Pretty interesting how it seems like the leverage is all in Apple's hands here. They didn't invest and AFAIK they aren't even paying for the GPT4 api calls.

Is the Apple user base THAT valuable?

By @cj - 10 months
This is an incredibly good decision on Apple's part.

OpenAI is a relatively new company with a not so great history when it comes to corporate governance / stability / consistency. If I were Apple and wanted to make sure I'm partnering with a startup that won't implode in 12 months, I'd demand a board seat too (even if it gets negotiated down to an observer seat).

By @mtillman - 10 months
Observer: Insider trading without the fiduciary risk.
By @ChrisArchitect - 10 months
By @asimpleusecase - 10 months
Open AI gets great brand building - Apple users spend a lot of money and are all potential open AI customers personally and professionally. If they get used to this “just working” all the time they may have confidence to use open Ai in their company. Also if Open AI can stay ahead of Apple in AI and keep delivering market winning innovation that causes Apple users to return to hardware upgrade cycles of every year or two that will generate many billions for Apple and make open Ai worth paying for.a bit like the drug dealer who gives you the first hit for free.
By @blackeyeblitzar - 10 months
Weird that Apple gets a board observer seat for having a regular business agreement, rather than an investment. It highlights the power of distribution and the insane power of owning these platforms. This is why regulation is needed around the big platform owners in tech.
By @surfingdino - 10 months
I'm looking for an alternative spelling of "pact"... how about "oligopoly" or "cartel"?
By @mushufasa - 10 months
Battle lines:

OpenAI: Microsoft + Apple

Anthropic: Amazon

Google vs all

Facebook the anarchist

Nvidia arms dealer