Apple Drops OpenAI Board Observer Role Amid Regulatory Scrutiny

Apple will not take an observer role on OpenAI's board as part of a deal to integrate ChatGPT into its devices, according to the Financial Times.

open ai logo
Bloomberg last week reported that Apple Fellow and App Store chief Phil Schiller would to take the position as part of its agreement with OpenAI, which will see ChatGPT integrated into iOS 18, iPadOS 18, and macOS Sequoia.

A board observer is an informal board position where the participant is able to attend and contribute to board meetings, but is not allowed to vote and has no control.

However, FT today reported that both Apple and Microsoft have given up their seats as observers on the board, amid increased scrutiny by regulators of Big Tech's investments in AI startups.

OpenAI will instead host regular meetings with partners as part of "a new approach to informing and engaging key strategic partners," an OpenAI spokesperson said. The meetings will be held with Sarah Friar, the company's chief financial officer.

The European Commission last month said it was exploring the possibility of an antitrust investigation into Microsoft and OpenAI's partnership. The U.S. Federal Trade Commission is also looking at investments made by companies including Microsoft, Amazon, and Google into generative AI start-ups.

Apple and OpenAI's deal will see Siri able to hand complicated user requests over to ChatGPT with explicit user permission. OpenAI is not paying Apple to integrate ChatGPT in its operating systems, nor is Apple paying OpenAI. No money is being exchanged under the terms of the arrangement at the current time.

Tag: OpenAI

Popular Stories

iPhone SE 4 Thumb 1

iPhone SE 4 With Apple's Own 5G Modem 'Confirmed' to Launch in March

Tuesday November 19, 2024 12:12 pm PST by
Barclays analyst Tom O'Malley and his colleagues recently traveled to Asia to meet with various electronics manufacturers and suppliers. In a research note this week, outlining key takeaways from the trip, the analysts said they have "confirmed" that a fourth-generation iPhone SE with an Apple-designed 5G modem is slated to launch towards the end of the first quarter next year. In line with previo...
airtag purple

AirTag 2 Rumored to Launch Next Year With These New Features

Sunday November 17, 2024 5:18 am PST by
Apple released the AirTag in April 2021, so it is now three over and a half years old. While the AirTag has not received any hardware updates since then, a new version of the item tracking accessory is rumored to be in development. Below, we recap rumors about a second-generation AirTag. Timing Apple is aiming to release a new AirTag in mid-2025, according to Bloomberg's Mark Gurman....
Magic Mouse Next to Keyboard

No, Apple CEO Tim Cook Didn't Say He Prefers Logitech's MX Master 3 Over the Magic Mouse

Sunday November 17, 2024 3:03 pm PST by
While the Logitech MX Master 3 is a terrific mouse for the Mac, reports claiming that Apple CEO Tim Cook prefers that mouse over the Magic Mouse are false. The Wall Street Journal last month published an interview with Cook, in which he said he uses every Apple product every day. Soon after, The Verge's Wes Davis attempted to replicate using every Apple product in a single day. During that...
Generic iOS 18 Feature Real Mock

Apple Releases iOS 18.1.1 and iPadOS 18.1.1 With Security Fixes

Tuesday November 19, 2024 10:10 am PST by
Apple today released iOS 18.1.1 and iPadOS 18.1.1, minor updates to the iOS 18 and iPadOS 18 operating systems that debuted earlier in September. iOS 18.1.1 and iPadOS 18.1.1 come three weeks after the launch of iOS 18.1. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iOS 17.7.2 for...
at t turbo indicator iphone 16 pro max v0 8hrh7w5f3w1e1

AT&T Turbo Indicator Showing Up in iPhone Status Bar for Subscribers

Wednesday November 20, 2024 3:42 am PST by
AT&T has begun displaying "Turbo" in the iPhone carrier label for customers subscribed to its premium network prioritization service, according to reports on Reddit. The new indicator seems to have started appearing after users updated to iOS 18.1.1, but that could be just coincidence. Image credit: Reddit user No_Highlight7476 The Turbo feature provides enhanced network performance through ...
iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Rumored to Surpass iPhone 6 as Thinnest iPhone Ever

Monday November 18, 2024 1:07 pm PST by
In a research note with Hong Kong-based investment bank Haitong today, obtained by MacRumors, Apple analyst Jeff Pu said he agrees with a recent rumor claiming that the so-called "iPhone 17 Air" will be around 6mm thick. "We agreed with the recent chatter of an 6mm thickness ultra-slim design of the iPhone 17 Slim model," he wrote. If that measurement proves to be accurate, there would be ...
bug security vulnerability issue fix larry

Make Sure to Update: iOS 18.1.1 and macOS Sequoia 15.1.1 Fix Actively Exploited Vulnerabilities

Tuesday November 19, 2024 10:52 am PST by
The iOS 18.1.1, iPadOS 18.1.1, and macOS Sequoia 15.1.1 updates that Apple released today address JavaScriptCore and WebKit vulnerabilities that Apple says have been actively exploited on some devices. With the JavaScriptCore vulnerability, processing maliciously crafted web content could lead to arbitrary code execution. The WebKit vulnerability had the same issue with maliciously crafted...

Top Rated Comments

antiprotest Avatar
19 weeks ago
Now even that little external oversight is gone. Prepare to have everything you send ChatGPT to be stored in plain text.
Score: 15 Votes (Like | Disagree)
cyanite Avatar
19 weeks ago

What’s the best idea?
? to disable everything relating to AI once iOS 18 is installed.
That's just YOUR best idea. But people can make their own decisions.
Score: 12 Votes (Like | Disagree)
OwlBundy Avatar
19 weeks ago

Now even that little external oversight is gone. Prepare to have everything you send ChatGPT to be stored in plain text.
I don’t think you are quite grasping the subtle differences of what is discussed at board meetings versus Apple having oversight of OpenAI implementing technology into their hardware.
Score: 10 Votes (Like | Disagree)
klasma Avatar
19 weeks ago
Poor Phil. ? How will he innovate his ass now?
Score: 10 Votes (Like | Disagree)
OwlBundy Avatar
19 weeks ago

Nah, board members can bring up these things if they want to. And I am not saying members on OpenAI board can dictate what happens on Apple hardware. I am saying how OpenAI will store data sent to them on their own servers.
Apple bans some apps that nobody uses or heard of because of where the developer put a link. Apple certainly has ironclad oversight and control of what happens with chatgpt implementation on their hardware. If they don’t approve of data being stored in plain text it’s not going to be.
Score: 8 Votes (Like | Disagree)
DBZmusicboy01 Avatar
19 weeks ago
What’s the best idea?
? to disable everything relating to AI once iOS 18 is installed.
Score: 7 Votes (Like | Disagree)