Apple reportedly investing in OpenAI, which could signal deeper collaboration with ChatGPT
Apple has big plans for its own Apple Intelligence AI features this year, but may be hedging its risks with an investment in OpenAI, according to a Wall Street Journal report.
Given OpenAI’s upcoming funding round, which claims to value the company at over $100 billion, big-budget companies like Apple are likely needed anyway. However, it could mean that Apple’s future in AI is a bit more fluid than previously thought.
Apple’s interest in OpenAI fits with the rush into AI this year, particularly with the planned release of Apple Intelligence. The company is expected to share many more details about these AI futures during its Glowtime event scheduled for September 9. We already know that Apple plans to include both its own and third-party AI models. You could ultimately have many more choices over the kinds of AI features you can use on your Apple devices, which would be a different experience compared to the way they normally default to using Apple’s own apps and services (which caused a bit of chaos when Apple Maps ended its deal with Google Maps).
This is not the first sign of an agreement between Apple and OpenAI, by the way. For example, Apple is working on integrating ChatGPT features into Mac and iOS systems. But since the WSJ report points out that Apple typically doesn’t invest in companies like OpenAI, instead buying startups and investing in manufacturing companies. Given that the investment round is expected to be worth several billion dollars, OpenAI is naturally happy to have Apple sign a check.
Of course, Apple isn’t the only investor in the round. It’s led by Thrive Capital, but Microsoft, typically one of Apple’s biggest rivals, is also participating. That’s notable, considering Microsoft was the first major investor in OpenAI and has already invested $13 billion, giving it a 49% stake in OpenAI’s profits.
OpenAI-Apple
While Apple is typically known for its own approach to products and platforms, OpenAI isn’t the only partner when it comes to AI. There have been rumors of plans for Apple and Meta to collaborate on AI features for future iPhones, and the company has publicly mentioned the possibility of working with Google to gain access to its Gemini AI models. The same goes for Apple’s discussions with both Anthropic, the maker of Claude AI, and Perplexity AI.
However, Apple isn’t giving up on its one-size-fits-all approach, according to the report. It’s still making privacy a cornerstone of its brand. Apple is working on stronger privacy protections for users interacting with AI tools than is standard. Apple’s goal, apparently, is to ensure that complex AI tasks are processed through ChatGPT and maintain a higher level of data security and user confidentiality.
For Apple users, incorporating ChatGPT and other AI models into Apple’s ecosystem could lead to better experiences. At the same time, Apple’s moves highlight that the competition in AI, particularly between Apple and Microsoft, is taking on a unique form compared to a simple operating system war. Both companies are vying for dominance of the AI landscape. The question is whether privacy and other Apple strengths will trump Microsoft’s efforts to make AI part of its entire product lineup and its lead in both implementation and investment in OpenAI.