OpenAI and Apple Announce a Partnership

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On June 10 2024, OpenAI and Apple announced a partnership at Apple's Worldwide Developer Conference 2024, to integrate ChatGPT into iOS, iPadOS, and macOS. This collaboration will allow users to leverage ChatGPT’s advanced capabilities, such as image and document understanding, directly within Apple's ecosystem. Siri will also utilize ChatGPT for enhanced responses, ensuring user consent and privacy protections. Additionally, ChatGPT will be embedded in Apple's system-wide writing tools, aiding in content generation and image creation. This integration, powered by GPT-4o, will be available for free later this year, with premium features accessible to ChatGPT subscribers.

Elon Musk wasn’t very happy with this news. "If Apple integrates OpenAl at the OS level, then Apple devices will be banned at my companies. That is an unacceptable security violation ... And visitors will have to check their Apple devices at the door, where they will be stored in a Faraday cage."

He went on to tweet (or rather X) that “It's patently absurd that Apple isn't smart enough to make their own AI, yet is somehow capable of ensuring that OpenAI will protect your security & privacy! Apple has no clue what's actually going on once they hand your data over to OpenAI. They're selling you down the river.”

Musk’s outburst doesn’t make sense. Surely if you use ChatGPT either with or without Apple’s directions, your usage will be governed by ChapGPT’s terms. Further, Apple has said that you can use the integration without signing into a ChatGPT account, and--in that case--all of your data is anonymized, and OpenAI won't store any of your information or queries. Apple and OpenAI are not engaging in a financial transaction for this integration, never company expects any substantial revenue from this collaboration in the initial stages. The partnership focuses on embedding ChatGPT into Apple's ecosystem, including Siri and new writing tools, aiming to amplify OpenAI’s technology exposure to Apple’s vast user base. This strategic move underscores Apple’s belief in the promotional value of integrating advanced AI capabilities like ChatGPT.

Musk had a massive falling out with OpenAI and its co-founder Sam Altman. Musk is also building his own competitor to OpenAI, called xAI. He even recently diverted a huge shipment of Nvidia H100 graphics chips used for cloud AI compute from Tesla to xAI.  Elon Musk's venture xAI has raised $6 billion in funding, aiming to rival OpenAI in the AI race and xAI's first product, Grok, is set to compete with OpenAI's ChatGPT. The investment round attracted prominent backers like Andreessen Horowitz and Sequoia Capital. Musk plans to launch a data center by 2025 to enhance xAI's capabilities. 

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