Apple In Talks With Microsoft-Backed OpenAI
Apple Inc. (AAPL) has reportedly resumed discussions with Microsoft Corp.-backed OpenAI (MSFT) about incorporating the startup’s AI technology into the upcoming iPhone features.
What Happened
Apple is in talks with OpenAI to potentially integrate its technology into the iPhone’s next operating system, iOS 18, as reported by Bloomberg. The companies are discussing the terms of the agreement and how OpenAI’s features would be integrated into iOS 18. This marks the reopening of discussions between the two companies after minimal engagement since their initial collaboration earlier this year.
Apple has not yet finalized its partners, leaving the possibility open for a deal with both OpenAI and Google, or another provider altogether.
Why It Matters
The renewed talks between Apple and OpenAI coincide with Apple’s ongoing discussions with Alphabet Inc.’s Google (GOOG, GOOGL) about licensing Google's Gemini AI models for future iPhones. A potential deal with OpenAI and Google could significantly enhance the iPhone’s AI capabilities.
Apple’s CEO, Tim Cook, has been proactive about introducing new AI features to Apple's devices. By partnering with OpenAI and Google, Apple aims to accelerate its AI advancements and improve its devices' AI capabilities while managing associated risks.
Price Action
Apple's shares closed 0.35% lower at $169.30 on Friday, according to Benzinga Pro.
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