Apple gets an observer seat on the OpenAI board as part of the AI agreement

According to Bloomberg, Phil Schiller, the president of Apple's App Store and a former marketing executive, will join OpenAI's board as an observer. This is a big move that will strengthen Apple and OpenAI's partnership.

This action is a component of the historic deal that was unveiled last month, further solidifying the bond between these two enormous digital companies.

Despite not having full directorial authority, Schiller's position as a board observer will give him important insights into OpenAI's decision-making process. This agreement, which is anticipated to go into effect later this year, would put Apple on an equal footing with Microsoft, which is OpenAI's main supplier of AI technology and biggest backer.

This comes after Apple said in June that it will include ChatGPT into a whole range of artificial intelligence technologies for its Mac, iPhone, and iPad models.

Schiller is a good fit for the observer job because of his lengthy history of protecting Apple's brand, even if he isn't in charge of the company's AI programmes. Currently holding the title of Apple Fellow, Schiller's duties include directing the company's product launch events and supervising the App Store.

By collaborating with OpenAI, Apple has taken a big step forward and positioned itself beside a prominent and cutting-edge AI firm. OpenAI is not without controversy, though, as seen by the temporary removal of CEO Sam Altman due to board transparency difficulties and criticism for downplaying AI safety concerns.

Though there isn't a payment agreement in place at the moment, this relationship gives OpenAI access to hundreds of millions of prospective consumers. Apple receives a chatbot function in exchange, which is much desired by customers. Additionally, the deal gives customers access to ChatGPT's premium version on Apple devices, which might result in Apple receiving money from the App Store.

Apple is also in discussions to deliver more chatbots and expand its AI capabilities to Chinese smartphones alongside Google, Baidu, Alibaba, and startup Anthropic. Apple Intelligence will first be released in American English before being made available to a global audience.

(Sources: investing.com, reuters.com)