Apple has secured a deal with OpenAI to integrate its conversational AI technology into Apple’s products.
The partnership, which could be worth billions, fulfills a long-time ambition of OpenAI CEO Sam Altman and marks a notable shift in Apple’s AI strategy.
According to The Information, this agreement enables Apple to utilize OpenAI’s generative AI technology in various applications, including potentially enhancing Siri’s capabilities.
An unnamed source close to the negotiations revealed, “Now, [Altman] has fulfilled a longtime goal by striking a deal with Apple to use OpenAI’s conversational artificial intelligence in its products, which could be worth billions of dollars to the startup if it goes well.”
The deal has not been without controversy within Apple’s ranks. John Giannandrea, Apple’s head of machine learning, has expressed strong opposition to the integration of large language model-driven chatbots into Apple’s software.
Giannandrea’s reservations stem from his belief that AI should be implemented in ways that prioritize user privacy and security, which he argues are best maintained with on-device models rather than server-side solutions.
In an internal meeting, Giannandrea reportedly stated, “The last thing people needed was another AI chatbot,” reflecting his skepticism about the value of such technology.
Despite these concerns, Apple seems to be exploring various ways to incorporate OpenAI’s technology without compromising its privacy standards.
For instance, Apple is developing proofs of concept, such as a more versatile version of Siri that can handle a broader array of questions by referring queries to OpenAI’s systems.

Tensions with Microsoft
The new partnership has also sparked concerns at Microsoft, which has invested $13 billion in OpenAI, securing a significant stake in its profits and exclusive access to its technologies for both enterprise and consumer products.
Microsoft CEO Satya Nadella is reportedly worried about how this new deal with Apple might impact their own strategic interests and product developments.
Nadella recently met with Altman to discuss these concerns. Insiders suggest that Microsoft’s apprehension lies in the potential dilution of their exclusive access to OpenAI’s technology, which has been a cornerstone of their AI advancements in products like the Azure cloud platform and Microsoft 365.
For OpenAI, the Apple deal represents a significant victory for Altman, who has faced intense scrutiny and internal challenges. Following a period marked by an attempted ouster, Altman has been steering OpenAI towards possibly restructuring its corporate framework.
One proposed change is transforming OpenAI into a B-Corp, a benefit corporation that balances profit-making with broader social and environmental goals.
This strategy could address criticisms about the company prioritizing “shiny products” over “safety culture and processes,” as alleged by former executive Jan Leike.
The Information reports that Altman and his allies are considering this transformation to create a middle ground between OpenAI’s current structure and a traditional for-profit corporation.
This could protect the company from certain shareholder lawsuits if it acts for reasons beyond profits, thus aligning with its mission of ensuring AI benefits all of humanity.

The details of the Apple-OpenAI agreement are still emerging, but it is clear that Apple is positioning itself to leverage advanced AI while maintaining its core principles of privacy and user trust.
There are even rumors that Apple might create an AI App Store, offering users a choice between different AI providers, much like it does with search engines and browsers.
Industry analysts are keenly awaiting Apple’s WWDC keynote on June 10, where the company is expected to unveil more about this groundbreaking partnership and its implications for the future of AI on Apple devices.
For now, this deal represents a major win for Sam Altman and a pivotal moment for Apple as it navigates the complex and rapidly evolving world of AI technology.