Source: Wall Street News

OpenAI teamed up$Apple (AAPL.US)$, the two benefit each other, but$Microsoft (MSFT.US)$I'm starting to worry.

On Thursday, according to the tech media The Information, Apple had already been exposed to OpenAI as early as mid-2023, while Microsoft was concerned about the cooperation between the two companies.

The Apple WWDC 2024 Developer Conference will be held at 1 a.m. on June 11, Beijing time. Earlier news revealed that Apple has reached a cooperation with OpenAI to integrate ChatGPT into the upcoming iOS 18 system. The cooperation between the two parties is expected to be officially announced at the conference.

This is undoubtedly a mutually beneficial cooperation for both parties. OpenAI will gain billions of Apple mobile device customers and further open up the market; and with the support of ChatGPT, Apple will further enhance the level of intelligence of the iOS system.

However, Microsoft, which has invested tens of billions of dollars in OpenAI, is not happy. Competitors' increased AI capabilities may hurt their share of the AI market.

Apple and OpenAI have been in negotiations for a year

According to the report, Apple's machine learning team employees began to interact with OpenAI CEO Altman and his employees around the WWDC 2023 conference.

In the same year, Apple signed an agreement with OpenAI to allow Apple employees to access OpenAI's API for internal testing.

In related tests, Apple engineers connected ChatGPT and Siri to greatly improve Siri's processing ability and better understand the context of what users are saying.

According to familiar sources, the company is focusing on using OpenAI technology to get Siri to answer more complex questions, or even turn it into a chatbot. OpenAI showed Apple how Siri can be more sensitive, natural, and quickly translate languages, search for useful information, or entertain users.

Most importantly, Apple products will use OpenAI's conversational artificial intelligence technology. If all goes well, this could bring the AI startup several billion dollars in revenue. In addition, cooperation with Apple is expected to enhance OpenAI's position in the technology industry in the long term.

OpenAI and colleagues hope that this collaboration will one day replace Apple's long-standing alliance with OpenAI's main competitor Google. Currently, Google dominates the search function of Apple Safari, which is critical to maintaining its monopoly position in the search engine.

The collaboration between the two has raised concerns from Microsoft's top management

At the same time, however, the partnership between Apple and OpenAI has raised concerns from Microsoft's senior management.

Microsoft wants to use OpenAI technology to break into the consumer market, not just the corporate market, and OpenAI's deal with Apple may hurt these opportunities, and Apple's AI capabilities will compete directly with Microsoft.

However, on the positive side, Microsoft may earn more money from the partnership between Apple and OpenAI, and Microsoft will receive more cloud computing revenue.

Altman recently met with Microsoft CEO Satya Nadella to discuss Microsoft's concerns about how the deal with Apple could affect the cloud software giant's own products. For example, Microsoft is concerned about how to handle the demand for servers when Apple rolls out new features for iPhone and iPad users.

Editor/jayden