The Inside Scoop: Apple's Observer Role in OpenAI Agreement

Published On Wed Jul 03 2024
The Inside Scoop: Apple's Observer Role in OpenAI Agreement

Apple Secures Observer Role on OpenAI Board in Landmark Agreement

Apple Inc. has announced that it will take on an observer role on OpenAI's board following a recent agreement, signaling a significant development in their closely-watched partnership. Phil Schiller, the leader of Apple's App Store and former marketing chief, has been chosen to fulfill this role. While he will not serve as a full-time director, Schiller will act as a board observer.

Integration of ChatGPT

Just last month, Apple revealed its plans to incorporate ChatGPT into its iPhone, iPad, and Mac devices to enhance its AI offerings. According to a report from Bloomberg, Apple's observer status on OpenAI's board is expected to commence later this year. By securing this position, Apple will join Microsoft Corp., OpenAI's primary backer and key AI technology provider, at the same level.

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Roles and Responsibilities

Although the observer role does not entail voting privileges or directorial authority, it grants the individual access to board meetings and valuable insights into the company's decision-making processes. The presence of both Microsoft and Apple in OpenAI board meetings may present challenges due to their complex history as competitors and collaborators. Certain discussions regarding future AI projects involving OpenAI and Microsoft might require Schiller to recuse himself. It is customary for board observers to excuse themselves from sensitive deliberations.

Phil Schiller's Appointment

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Despite not being directly involved in Apple's AI initiatives, Schiller's extensive experience in managing the company's brand makes him a suitable candidate for the observer role. At 64 years old, Schiller stepped down from his marketing leadership position in 2020 and now serves as an Apple Fellow. He remains responsible for overseeing the App Store and organizing the company's product launches.