Apple will get an observer role on OpenAI\u2019s board as part of a landmark agreement announced last month, further tightening ties between the once-unlikely partners.<\/p>\n
Phil Schiller, the head of Apple\u2019s App Store and its former marketing chief, was chosen for the position, according to people familiar with the situation.<\/p>\n
As a board observer, he won\u2019t be serving as a full-fledged director, said the people, who asked not to be identified because the matter isn\u2019t public.<\/p>\n
The move follows Apple\u2019s announcement in June that it would\u00a0offer ChatGPT\u00a0in the iPhone, iPad and Mac as part of a suite of artificial intelligence features.<\/p>\n
The board arrangement will take effect later this year, and Schiller hasn\u2019t yet attended any meetings, according to the people. Details of the situation could still change.<\/p>\n
The board observer role will put Apple\u00a0on par with Microsoft Corp., OpenAI\u2019s biggest backer and its main AI technology provider.<\/p>\n
The job allows someone to attend board meetings without being able to vote or exercise other director powers. Observers, however, do gain insights into how decisions are made at the company.<\/p>\n
Representatives for Apple and OpenAI declined to comment.<\/p>\n
Having Microsoft and Apple sit in on board meetings could create complications for the tech giants, which have been rivals and partners over the decades.<\/p>\n
Some OpenAI board meetings will likely discuss future AI initiatives between OpenAI and Microsoft \u2014 deliberations that the latter company may want Schiller excluded from.<\/p>\n
Board observers often do oblige and exit meetings during discussions that are seen as sensitive.<\/p>\n
Though Schiller doesn\u2019t lead Apple\u2019s\u00a0artificial intelligence initiatives, his veteran role as a steward of the company\u2019s brand makes him well-suited to the observer job.<\/p>\n
The 64-year-old\u00a0stepped down\u00a0as head of marketing in 2020, and his current title is Apple Fellow.<\/p>\n
In addition to overseeing the App Store, he still manages the company\u2019s product launch events. Outside of Apple, he\u2019s a director at medical technology company Illumina Inc.<\/p>\n
With the OpenAI partnership, Apple is teaming up with the biggest and most influential AI startup \u2014 but also a business known for\u00a0controversy and upheaval.<\/p>\n
OpenAI chief executive officer Sam Altman was briefly ousted\u00a0last year over concerns that he wasn\u2019t candid enough with the board.<\/p>\n
The company also has drawn criticism for downplaying AI safety fears and using a digital voice\u00a0that sounded similar\u00a0to actress Scarlett Johansson without an agreement.<\/p>\n
The OpenAI integration is one component of Apple\u2019s\u00a0overall AI strategy, which also includes in-house features.<\/p>\n
wIts technology \u2014 called Apple Intelligence \u2014 summarises articles and notifications, creates custom emojis and images, and transcribes voice memos.<\/p>\n
The effort also includes a revamped version of Apple\u2019s Siri digital assistant, but many of those enhancements won\u2019t arrive until next year.<\/p>\n
Apple\u2019s partnership with OpenAI isn\u2019t a financial arrangement,\u00a0at least for now.<\/p>\n
Instead of money changing hands, OpenAI is getting access to hundreds of millions of potential users. For its part, Apple gains a chatbot feature that many consumers are clamoring for.<\/p>\n
Users also will be able to access a paid version of ChatGPT on Apple devices, and that could generate App Store fees for the iPhone maker.<\/p>\n
Apple\u00a0remains in discussions\u00a0with Alphabet Inc.\u2019s Google and startup Anthropic about offering additional chatbots to customers.<\/p>\n
It\u2019s also discussing potential agreements with Baidu Inc. and Alibaba Group Holding Ltd. to bring its AI features to devices in China.<\/p>\n
Apple Intelligence will launch initially in American English before an international rollout.<\/p>\n
Top Apple executives frequently serve as directors of other companies, but joining the board of a high-profile partner is rare.<\/p>\n
Apple, did, however,\u00a0briefly hold\u00a0a board seat at DiDi Global Inc. after investing $1 billion in the China-based Uber rival.<\/p>\n","protected":false},"excerpt":{"rendered":"
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