OpenAI Seal Deal with Apple, Sparks Microsoft Disinterest

OpenAI Seal Deal with Apple, Sparks Microsoft Disinterest

Alessandro Rossi
2 min read

OpenAI and Apple Strike Billion-Dollar Deal, Sparking Industry Reactions and Speculations

On May 30, 2024, OpenAI announced a partnership with tech giant Apple, marking a significant move in the AI and tech industry. While the details of Apple's utilization of OpenAI's technology remain undisclosed, the deal has triggered mixed responses from industry players. At Microsoft, there appears to be a lack of enthusiasm for the deal as the company seeks to expand its customer base using its own Copilot offerings alongside OpenAI's tech.

The CEO of OpenAI, Sam Altman, has faced criticism amidst the deal, which has the potential to be valued in the billions. This collaboration could solidify Altman's control over the company and he is reportedly contemplating a restructuring of OpenAI from a nonprofit entity overlooking a for-profit subsidiary to potentially becoming a regular, and even public, company. This move would grant him a direct financial stake for the first time.

Additionally, ahead of Apple's WWDC event in June, the tech giant is gearing up to showcase AI-powered enhancements for everyday applications such as Safari, Photos, and Notes. Apple aims to integrate less intensive AI tasks directly on devices with heavier tasks being handled by cloud-based M2 Ultra chips.

Key Takeaways

  • OpenAI secures a potentially billion-dollar deal with Apple, potentially solidifying CEO Sam Altman's control.
  • Microsoft expresses little enthusiasm for the OpenAI-Apple deal, focusing on mainstream customer attraction.
  • OpenAI's unique structure, with a nonprofit overseeing a for-profit company, may transition to a regular company model.
  • Apple's "Project Greymatter" aims to integrate AI tools into everyday apps like Safari and Photos.
  • Apple plans to showcase ChatGPT integration in iOS18 at WWDC, focusing on AI-powered convenience.


The partnership between OpenAI and Apple could potentially reshape OpenAI's corporate structure, shifting from a nonprofit-overseen model to a regular company, thereby enhancing CEO Sam Altman's control and personal stake. This transition may impact OpenAI's strategic focus and funding dynamics. Microsoft's restrained response indicates a competitive repositioning, leveraging its Copilot offerings independently to expand its customer base.

Apple's integration of AI into everyday apps through "Project Greymatter" aims to enhance user experience by leveraging device-based AI tasks alongside cloud-based computing. This move could set a new standard for device-cloud AI integration, with potential influence on future tech development and consumer expectations.

Did You Know?

  • OpenAI's Unique Structure: Originally, OpenAI operated under a hybrid model with a nonprofit parent company overseeing a for-profit subsidiary. The potential transition to a regular, possibly public, company model brings implications for governance and financial incentives, directly impacting operational and decision-making processes.
  • Apple's "Project Greymatter": Apple's initiative focuses on integrating AI tools into everyday applications, enhancing user experience by optimizing performance and efficiency through a combination of local and cloud computing resources.
  • Microsoft's Copilot Offerings: Microsoft's suite of AI-powered tools, Copilot, reflects the company's strategic focus on integrating AI solutions directly into its products and services, as it seeks to maintain a competitive edge in the AI market.

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