Divided opinion as Apple partners with OpenAI to usher in era of AI-led growth
In a move that has both excited and divided industry watchers, Apple announced its partnership with OpenAI during its annual developer conference this week. OpenAI’s CEO, Sam Altman, was present at the conference and was seen mingling with Apple executives, including co-founder Steve Wozniak, but did not make an appearance in the official presentation or subsequent private press event.
This cautious approach by Apple was expected by some analysts. “Apple had to manage the message carefully. OpenAI is merely the vehicle to address broader AI-powered inquiries that are not core to the Apple experience,” noted Ben Wood, an analyst at CCS Insight. This partnership allows Apple to integrate OpenAI’s ChatGPT technology into its devices, enhancing Siri’s capabilities without overshadowing Apple’s proprietary AI technology, known as Apple Intelligence.
The collaboration is set to bring ChatGPT to Apple devices later this year, primarily assisting Siri with more complex inquiries. During a demo, Apple showcased how Siri might defer to ChatGPT for certain questions, such as recipe suggestions based on a photo of vegetables from a farmer’s market. This phased integration aims to bolster Siri’s functionality while maintaining user control and consent, requiring users to opt-in for each interaction with ChatGPT.
Apple’s decision to partner with OpenAI comes amidst a rapidly evolving AI landscape, where concerns about misinformation, biases, and privacy are prevalent. These issues have prompted both excitement and skepticism about the new collaboration. While some see it as a strategic move to spur growth in iPhone sales and enhance user experience, others are wary of the potential risks associated with integrating third-party AI technology.
Elon Musk, a vocal critic of AI risks, was among the first to voice his opinion threatening to ban Apple devices in his companies if Apple integrates OpenAI at the operating system level. In a post on X, Musk termed it as “an unacceptable security violation.”
However, Apple has emphasized its commitment to privacy and security, assuring that most AI functions will be handled on-device and that no personal user information will be shared with OpenAI.
Gartner analyst Annette Zimmermann also countered Musk’s argument noting that AI security and privacy issues is not an iPhone problem.
“Any employee with a smartphone should follow company policies and not enter any private information into the open domain of ChatGPT. This is not specific to the iPhone … or Tesla,” she said.
That aside, the partnership has already had a notable impact on Apple’s financial standing. Following the announcement, Apple’s stock price surged by up to 10%, boosting its market capitalization by over $300 billion. Consequently, the company briefly reclaimed its position as the second-largest public company in the US, surpassing Nvidia and closely trailing Microsoft.