The role of board observer will put Apple on par with Microsoft, and this collaborative model may become a trend for future technology companies to cooperate in the field of artificial intelligence.

By Tabby Kinder

The role of board observer will put Apple on par with Microsoft, and this collaborative model may become a trend for future technology companies to cooperate in the field of artificial intelligence.

Apple will join the OpenAI board as an observer, allowing the iPhone maker to gain insights into the artificial intelligence startup similar to its biggest supporter, Microsoft.

This board position is part of an agreement between Apple and OpenAI, announced last month, aimed at integrating ChatGPT into Apple devices. Apple CEO Tim Cook said the collaboration will be part of a series of AI features, such as an enhanced version of the Siri voice assistant, which he described as the "next big step" in integrating the technology into its products.

Phil Schiller, Apple's App Store chief and a member of its executive team since 1997, will take on the role of board observer later this year, according to sources familiar with the matter, first reported by Bloomberg. Both OpenAI and Apple declined to comment.

The observer position means Schiller can attend OpenAI board meetings but cannot vote on any board decisions. This puts Apple on equal footing with Microsoft, which also received a non-voting observer position last year.

As part of a strategic partnership, Microsoft has invested about $13 billion in OpenAI, allowing the developers of ChatGPT to access Microsoft's vast computing and cloud resources while remaining independently operated.

According to the terms of the agreement, Microsoft has the right to receive about half of OpenAI's profits until the investment is recouped.

OpenAI restructured its board in March, with co-founder and CEO Sam Altman rejoining after being dramatically ousted in November last year. A review of the board's turmoil found no evidence that he misled investors or pushed product releases at an unsafe pace, concerns that led to his dismissal and subsequent reinstatement a few days later.

OpenAI also added three new board members, including Instacart CEO Fidji Simo, former head of the Bill and Melinda Gates Foundation Sue Desmond-Hellmann, and former Sony Entertainment president Nicole Seligman. Former U.S. Treasury Secretary Larry Summers was appointed to the board late last year, and former board member and Quora CEO Adam D'Angelo continues to serve as a board member.

As Apple strikes the deal, tech giants including Alphabet, Microsoft, Amazon, and Meta are racing to develop new products using AI, while also competing or in some cases collaborating with startups focused on the technology. This has drawn the attention of U.S. antitrust regulators, who have requested information on the cooperation between major tech companies and emerging AI groups.

Apple will not pay OpenAI for using ChatGPT, but the agreement will give the startup access to hundreds of millions of users. Apple's suite of generative AI features, dubbed "Apple Intelligence," is expected to be launched later this year.

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