Apple secures ‘observer’ seat on OpenAI board

Following Apple’s partnership announcement with OpenAI at WWDC last month, a new report reveals that the tech giant will secure an “observer role” on OpenAI’s board of directors.
Robert Test (Author)
Published on July 11th, 2024

In a strategic move that underscores the growing synergy between technology giants and AI research entities, Apple has recently achieved an observer spot on OpenAI's board of directors. Following the announcement of their partnership at Apple's Worldwide Developers Conference (WWDC) last month, this new development represents a deepening of ties between the two influential players. With this arrangement, Apple joins forces with OpenAI, signaling a significant moment in the tech realm and showcasing the importance of AI in shaping the future of technology.

According to a revealing report by Bloomberg, the tech behemoth, Apple, will secure a coveted observer status on OpenAI’s board, positioning it alongside Microsoft - OpenAI's largest supporter and main technology supplier. Phil Schiller, a distinguished figure within Apple who has transitioned from being the chief of marketing to an Apple Fellow, will be the company's representative on the OpenAI board. It's important to note that while Schiller will participate in board meetings, he will not possess voting power or the typical privileges of a director. Nonetheless, this role is expected to furnish Apple with critical insights into OpenAI's strategic decisions and future direction.

Underscoring the partnership, the integration of ChatGPT into iOS 18 as part of the Apple Intelligence suite was one of the major announcements at WWDC this June. This move by Apple, to embrace ChatGPT without a direct financial transaction, highlights a trade of value where the exposure of ChatGPT on iOS 18 is seen as equally or more valuable than monetary compensation. For OpenAI, this arrangement amplifies its reach through Apple's platforms, marking a significant milestone in the dissemination of AI technologies. The Bloomberg report also touches on the fact that Phil Schiller’s active involvement with the OpenAI board is pending, as he has "hasn’t yet attended any meetings," signaling a careful approach to this new commencement.

Phil Schiller's appointment as Apple's observer on the OpenAI board is especially significant considering his ample experience and prevailing roles within Apple. Since becoming an Apple Fellow in 2020, Schiller has continued to oversee the App Store and Apple's evocative events, maintaining a direct reporting line to CEO Tim Cook. In the midst of navigating global antitrust allegations against the App Store, Schiller’s engagement with OpenAI is poised to bring a wealth of knowledge and strategic insight, cementing Apple's engagement with leading AI research endeavors.

The securing of an observer seat on OpenAI's board by Apple, through Phil Schiller, marks a pivotal move for the tech company, emphasizing a strong commitment to integrating AI into its ecosystem. This unprecedented partnership with OpenAI illustrates Apple's vision of leveraging AI to redefine technology and its applications. With no monetary exchange involved, the agreement reflects a novel model of collaboration in the tech world, focusing on mutual growth and innovation. As this relationship between Apple and OpenAI unfolds, it promises to drive significant developments in AI, benefiting both entities and setting new standards in the tech industry.

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