Apple jumps into the AI arms race with OpenAI deal.
👉 $AAPL (Apple) officially launched itself into the artificial intelligence arms race, announcing a deal with ChatGPT maker OpenAI to use the company’s technology in its products and showing off a slew of its own new AI features.
👉 The announcements, made at the tech giant’s annual Worldwide Developers Conference on Monday in Cupertino, California, are aimed at helping the tech giant keep up with competitors such as $GOOGL (Alphabet Inc Class A) and $MSFT (Microsoft) , which have boasted in recent months that AI makes their phones, laptops and software better than Apple’s. In addition to Apple’s own homegrown AI tech, the company’s phones, computers and iPads will also have ChatGPT built in “later this year,” a huge validation of the importance of the highflying start-up’s tech. The deal will put ChatGPT in front of millions of Apple users who might not know about or want to use it directly on their own.
👉 Apple’s jump into AI underscores the extent to which the tech industry has bet its future on the technology. The iPhone maker has generally positioned itself over the years as charting its own way, focusing on a closed ecosystem centered on its expensive phones and computers, touting that model as better for users’ privacy. But the embrace of generative AI shows that the technology trend is too powerful for even Apple to ignore.
👉 Apple chief executive Tim Cook said the AI features are “game changers” that would be “indispensable” to its products going forward.
👉 “There are already some really impressive chat tools out there,” Craig Federighi, Apple’s senior vice president of software engineering, said during the company’s video presentation Monday. “But these tools know very little about you and your needs.”
👉 Many of the tools Apple showed off were similar to ones Google is building into its competing Android operating system, such as the ability to edit the background of photos to remove strangers.
👉 Apple’s deal with OpenAI could bring new scrutiny from regulators. The company is already battling a Justice Department antitrust lawsuit that alleges it wields an illegal smartphone monopoly. Antitrust enforcers have been wary of the ways that tech companies use their deep war chests to strike deals that threaten innovation. Apple’s massive deal with Google — in which the search giant pays to give its search engine prime placement in Apple’s Safari web browser — has been a key part of a government lawsuit that claims Google has used the arrangement to squeeze out competitors.
Read more âť“ www.washingtonpost.com/technology/2024/06/10/apple-openai-chatgpt-deal-siri/
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