AI

Apple Closes Billion-Dollar Deal with OpenAI to Integrate Generative AI Technology

Apple and OpenAI conclude deal to integrate generative AI into Apple software – parallels to the Google search agreement.

Eulerpool News Jun 4, 2024, 5:33 PM

Apple and OpenAI have struck a significant deal to integrate OpenAI's generative AI technology into Apple's software. This was reported by The Information, citing a source who spoke with OpenAI CEO Sam Altman.

Bloomberg had previously reported on the negotiations. According to The Information, Altman achieved a long-standing goal by concluding a deal with Apple that incorporates OpenAI's conversational AI into its products. If the deal is successful, it could bring in billions for the startup.

The deal, however, was not met with universal approval. According to reports, John Giannandrea, Apple's head of machine learning, is against the integration of chatbots based on large language models into Apple's software. Microsoft CEO Satya Nadella also expressed concerns about how the deal could impact the existing relationship between Microsoft and OpenAI. Microsoft has invested 13 billion dollars in OpenAI and uses its technology in its own products.

Giannandrea allegedly told Apple employees that "the last thing people needed was another AI chatbot" when asked if Apple was working on a similar development. Nevertheless, Apple could integrate large language models into its products in other ways without creating a new chatbot. One example would be using the OpenAI API to enhance Siri so that it can answer questions outside of its current scope.

It is reported that Apple will clarify when using OpenAI technology, similar to Google searches, if third-party providers like OpenAI are being used. There are also reports that Apple is negotiating a similar deal with Google. Apple might allow users to choose the AI chatbot provider, similar to search engines or default browsers.

Here is the translated heading:

"This deal strengthens Altman's position within OpenAI, especially after an attempted ousting some time ago. Additionally, Altman plans to change OpenAI's unusual structure. Currently, OpenAI is a for-profit corporation subordinate to a non-profit organization. The Information reports that Altman and his allies intend to transform OpenAI into a traditional for-profit corporation or a so-called Benefit Corporation (B-Corp). B-Corps allow companies to pursue goals beyond shareholders' interests and protect them from certain types of shareholder lawsuits when acting for reasons beyond profit.

This step could represent a middle ground between the current structure of OpenAI and a fully profit-oriented company.

With this deal, Altman strengthens his position and reinforces the connection between OpenAI and Apple, which could potentially have far-reaching impacts on the technology industry.

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