At Apple’s annual developer conference this week, OpenAI CEO Sam Altman was seen mingling with Apple’s current and former executives, including co-founder Steve Wozniak. Shortly after, Apple announced its anticipated partnership with OpenAI to integrate ChatGPT technology into its devices later this year.
Despite his presence, Altman did not appear in Apple’s formal presentation or join CEO Tim Cook and other executives in a private press event focused on privacy, security, and the new partnership. According to Ben Wood, an analyst at CCS Insight, Apple was careful to manage its message. He stated, “OpenAI is just a means to enhance AI inquiries, which are not central to Apple’s core experience. Featuring Altman would have caused unnecessary confusion.”
Earlier this week, Apple introduced several AI-powered features for the iPhone, iPad, and Mac, primarily driven by its proprietary technology, Apple Intelligence. The inclusion of OpenAI’s ChatGPT will be limited, primarily assisting Siri when needed.
Apple’s decision to invite Altman but not feature him publicly reflects its cautious approach to the partnership. OpenAI and other AI firms face scrutiny over misinformation, biases, copyright issues, privacy, and security. The industry is rapidly evolving, and stakeholders are still learning to engage with the technology responsibly.
Apple aims for its AI push to boost iPhone sales, which have stalled without significant upgrades. The economic uncertainty, especially in China, also affects consumer spending. Regulatory scrutiny in Washington and competition with Nvidia and Microsoft for market value further pressure Apple. However, after the announcement, Apple’s stock price surged by 10%, increasing its market capitalization by over $300 billion.
Apple is not known for rushing to adopt new technologies but tends to perfect them before integration. The rapid adoption of generative AI, however, may be accelerating Apple’s efforts to keep its smartphones competitive with the latest technology.
“Apple needed to present a strong AI narrative,” Wood added. “Apple Intelligence and the partnership with ChatGPT bolster its AI capabilities, with enhancements like an improved Siri being a welcomed update for users.”
However, this partnership also exposes Apple to potential vulnerabilities, as it cannot control OpenAI’s models or handling of user data. Aligning with a company and technology still gaining public trust may present future challenges.
