Apple and Microsoft appear to play quite different games with their OpenAI accords

The two most valuable companies in the world know the idea of ​​releasing the latest technology. In the 1990s, Apple looked at Bill Gates to occupy Windows Global, making Microsoft's absolute benefits in the new computer market. By the late 2000s, Steve Ballmer's Microsoft was struggling as Steve Jobs' iPhone continued to shape the smartphone industry. Now, in the age of artificial intelligence, it's clear that no company wants to be left behind by a technology that Gates touted as "as revolutionary as cell phones and the Internet." As part of the deal announced last month, Apple will get an observer seat on OpenAI's board of directors, Bloomberg reported Tuesday. As part of the deal, Apple will integrate ChatGPT into its iPhone, iPad and Mac operating systems. Phil Schiller, the well-known man who heads Apple's App Store operations, has reportedly been chosen for the role. Microsoft has served in a similar observer role on the OpenAI board since November. But while the two Big Tech companies may soon have similar status on OpenAI's board, it's worth considering how different their relationship is with Sam Altman's company.

Apple's OpenAI

When Apple unveiled its partnership with OpenAI at its Worldwide Developers Conference (WWDC) in June, questions arose about the terms of the long-rumored tie-up. Given Apple's silence about its generative AI ambitions prior to the unveiling — a silence that left investors wondering whether it actually has serious AI ambitions — a fair question might be: "Would Apple be willing to pay OpenAI for access to Apple's AI models? Is there a new a powerhouse of tools designed to help users write text, create original images, and more. ChatGPT is more of an add-on that Apple users can choose to give, or refuse, permission to respond to queries.

Although Apple isn't getting direct financial benefits from OpenAI, it will hope the partnership helps trigger a massive upgrade cycle among iPhone users keen to try out Apple\'s new AI features, which will only be available on the most decent devices. Microsoft's OpenAI deal

Microsoft seems to have a closer relationship with OpenAI

It first invested $1 billion in OpenAI in 2019, and the ChatGPT creator has invested billions more since then. CEO Satya Nadella has sought a close relationship with OpenAI, the company that may be driving the boom in artificial intelligence. Microsoft's reasons for strengthening its ties to OpenAI are varied. Having invested billions, Nadella hopes the investment will eventually pay off big for Microsoft. OpenAI relies on Microsoft's massive cloud computing division to access the computing power needed to train and run large language models (LLMs), such as the GPT-4o model unveiled in May. Meanwhile, Bloomberg reported last month that Microsoft's investment in OpenAI could be met with questions from European regulators about how OpenAI's exclusive use of Microsoft's cloud technology could affect other companies in the industry.

Of course, it's unclear which company will find the most profitable relationship with OpenAI. The success of the Apple Openai cooperation can depend on how many people want to buy new iPhones. Microsoft seems to invest more.