Apple Gains Observer Seat on OpenAI Board Through Phil Schiller.

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Key Takeaways

  • Apple's Phil Schiller will join OpenAI's board as an observer, mirroring Microsoft's position.
  • This appointment is part of Apple's agreement to integrate ChatGPT into its operating systems.
  • As an observer, Schiller can attend board meetings but cannot vote or exercise directorial powers.

Apple has reportedly secured a seat on OpenAI’s board, further cementing its partnership with the AI research lab.

As reported by Bloomberg, App Store chief and former marketing head Phil Schiller will join the board as an observer — a role that grants Apple similar access to Microsoft, OpenAI’s primary financial backer.

Schiller, who has been a member of Apple’s executive team since Steve Jobs returned in 1997, will take part in OpenAI board meetings but won’t have voting rights.

The news comes after Apple announced at its recently concluded WWDC that it would integrate OpenAI’s ChatGPT chatbot into its devices. The integration will allow Siri to control apps, rewrite emails, and summarize notifications, with more complex tasks being handled by ChatGPT after obtaining user permission.

Unlike Microsoft, which invests heavily in OpenAI, Apple’s partnership appears non-monetary. Instead, OpenAI is expected to gain access to millions of potential users through Apple devices.

Apple Coming Onboard Could Spell Problem for Microsoft

With both Apple and Microsoft on the board, discussions regarding future AI initiatives with Microsoft might require Schiller’s absence, Bloomberg suggests this might create some problems in the future. 

The appointment of Schiller to this role is unusual, as Apple executives rarely hold board positions in companies they collaborate with. This move signals the growing importance of AI in Apple’s strategy and its readiness to stay competitive in the evolving AI landscape.

Apple has been on the fringes of AI discussions since OpenAI sparked off the generative AI race with ChatGPT in 2022. The iPhone maker recorded only 2% growth in its first quarter reports and canceled its foray into the EV market after a decade of trying. All of these left people worried about their Apple stock and the way forward for Apple.

However, with Schiller warming up to become Apple’s eyes and ears in OpenAI boardrooms, Apple may have quashed all doubts about its readiness to be in the mix of other AI giants.