So is this impactful to almost be neck and neck with Microsoft here with an observer position on the board? Thank you so much for having me. Yeah. Having an observer position on the open Air Board means this partnership between Apple and open air is a little bit tighter than we had anticipated. Right. This seemed like a simple integration of Egypt into Apple intelligence. Obviously, that the first partner here, by having a board observer role, Apple, gets more insight into the decision making at the company. And this is something that probably came in response to all the controversy that was facing Openai in the months prior to the agreement between Apple and the company being announced. Apple probably said, if you want this to go through, we need to know how your company is run and what's going on there. And tell us about Phil Schiller, who they've chosen to be that observer. Phil Schiller. His title is Apple Fellow. He's in charge of the App Store.

And Apple's product presentations, including the one where the opening idea was announced in June at its Worldwide Developers conference. He's been at Apple about three decades. Very much a top lieutenant still to Tim Cook and was one of the closest lieutenants and friends of Steve Jobs. He ran Apple's marketing organization for well over 20 years. He's known as one of the biggest defenders at the company of Apple's privacy stances, its product development process, its overall brand image. And given the concerns over a few different concerns from open A.I. and the safety with A.I. training. Concerns about Sam Altman. Concerns about their technology. Concerns about ethics in artificial intelligence, concerns about hallucinations. It doesn't make sense for someone like Schiller with that mindset to be the one in that board observer role, especially if they're looking for someone who's not from the A.I. set at Apple, who would be in direct competition with the AI side of open.

A.I..
Yeah, some awkward moments where maybe you having to be excused from certain
board meetings when they really get into the nitty-gritty of A.I..
I'm interested in whether or not it is all about open AI for Apple now, because
they were in talks with other providers for large language models.
Yeah, open A.I., certainly they've said for a while offers the best chat bot
with chat tape and that feature that open air is integrated into.
So it's all about the chat bot, all about texting questions or voicing
questions into Siri while using your iPhone, iPad or Mac.
And as I reported, that's going to come to the Apple Vision Pro as well as early
as next year. But it doesn't stop at opening.
Apple's goal is to have an ecosystem of different chapel providers that users
can choose from, not dissimilar to how you can choose between Yahoo, Bing,
Google, DuckDuckGo as your search engine.

in Safari or any other mobile platform.
So they're still engaged in conversations with Google Gemini as an
alternative to open air for people who may want to use that platform.
Obviously, that would be an extension of the Google search deal.
So it makes sense that Google would get in there.
The other company they've been talking to is Anthropic.
They're also a big A.I. provider.
One company that they're not talking to and you should not expect to be
integrated into Apple platforms is Metta with Lamar.
That is something that is not happening. They had a brief conversation around
February, March time frame when we reported on the open A.I.
and Gemini deal initially, but neither party moved to any sort of discussions
or advanced negotiations. I would imagine there's going to be more
providers down the road. Apple hinted at wanting some sort of
specialized chat box in there. For instance, maybe someone comes up
with a chat bot that's all about food.

recipes.
Maybe someone comes up with a chapter that's all about medical terminology and
medical information. Perhaps a doctor would want to use that
during a doctor's visit. So there are many, many opportunities
for more chat bots to be integrated into the OS.
It's just to be seen how the integration is done and when it happens.
I expect Google to be done before the end of the year.

Apple Set to Get OpenAI Board Observer Role

Welcome to the Bloomberg Technology YouTube channel. Subscribe for original series and mini-docs on game-changing technologies, profiles on innovators, live conversations with experts, and breaking technology news & analysis from Bloomberg TV.

Apple Set to Get OpenAI Board Observer Role

Apple Set to Get OpenAI Board Observer Role

Scripts