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

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Top Rated Comments

antiprotest Avatar
1 week 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
1 week 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
1 week 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
1 week ago
Poor Phil. ? How will he innovate his ass now?
Score: 10 Votes (Like | Disagree)
OwlBundy Avatar
1 week 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
1 week ago
What’s the best idea?
? to disable everything relating to AI once iOS 18 is installed.
Score: 7 Votes (Like | Disagree)