image credit:ET CIO

OpenAI CEO Sam Altman met current and past executives, including Steve Wozniak, at Apple’s annual developer conference this week. Apple announced a long-rumored partnership with OpenAI to bring ChatGPT to smartphones later this year over an hour later.

Altman has become the face of generative AI in the 18 months since ChatGPT started, but Apple did not include him in its formal presentation, either in person or via livestream. He skipped a private press session with Apple CEO Tim Cook and other executives on privacy, security, and partnership.

Apple demonstrated several new iPhone, iPad, and Mac AI features, most of which use Apple Intelligence.

The company will only offer OpenAI’s ChatGPT service when Siri needs help answering questions.

Apple’s cautious attitude to the cooperation is shown by inviting Altman to the launch but not having him speak. At OpenAI and other AI startups, researchers, business professionals, and government officials worry about misinformation, biases, copyright, privacy, and security. In a fast-paced business, government authorities, companies, and consumers are still learning how to responsibly use technology.

Apple expects a big push into AI to improve iPhone sales since the device hasn’t been updated in years and people are waiting longer to upgrade. China’s consumers are likewise anxious about the economy.

Washington regulators are scrutinizing the business, which Nvidia overtook as the second-largest US public company. Apple’s stock price rose 10% in 60 hours following its Monday event, overtaking Nvidia and putting it back in contention with Microsoft for market value.

Wood said Apple needed an AI story and that Apple Intelligence should reassure investors that Apple is keeping up with rivals. The relationship with ChatGPT strengthens Apple’s AI offerings, and users will embrace new features like a much enhanced Siri.

Apple has no control over OpenAI’s models or user inputs, thus the cooperation could put it at risk. Apple’s partnership with a corporation and technology that lack public trust could likewise generate issues.

Apple has been working on its own AI program for years, but partnering with OpenAI fills in competitive gaps.

Apple employing ChatGPT as a free service may reduce company risks. Apple may also work with other AI businesses like Google’s Gemini or niche vendors with healthcare expertise.

Wood believes Apple will approach the OpenAI partnership pragmatically. “If Apple finds that its relationship with OpenAI starts to affect the user experience or create security and data integrity issues, it may add guardrails or find other ways to deliver AI-powered content.”