According to reports, as part of the milestone agreement announced last month, Apple will receive an observer seat on the OpenAI board, further strengthening the connection between the two companies.

According to insiders, Phil Schiller, the head of Apple's App Store and former marketing director, has been selected as an observer for the OpenAI board of directors, but he will not serve as a formal director.

It is reported that Schiller's board of directors arrangements will take effect later this year, and he has not yet attended any meetings, and the specific arrangements still need to be adjusted.

Although Apple executives often serve on the boards of other companies, joining a board of directors with a well-known partner is rare. Previously, Apple briefly held a seat on its board of directors after investing $1 billion in Didi Chuxing.

Conflict with Microsoft

It is worth noting that the role of a board observer will put Apple on an equal footing with Microsoft, which is the largest investor in OpenAI and a major provider of artificial intelligence technology. This position allows observers to attend board meetings without voting rights or exercising the powers of other directors. However, observers can indeed gain a deeper understanding of the company's decision-making process.

Joining the board of directors simultaneously with Apple and Microsoft may cause issues. These two companies have been competitors for decades. Some OpenAI board meetings may discuss issues related to Microsoft's future artificial intelligence plans, and Microsoft may want Schiller to be excluded from these discussions.

It is understood that board observers are usually required to leave the meeting room during sensitive discussions.

Although Schiller does not lead Apple's artificial intelligence projects, his extensive experience as a brand manager makes him very suitable for the role of an observer. Schiller, who is currently 64 years old, stepped down from his position as Marketing Director in 2020. Currently, in addition to being responsible for the App Store, he also manages the company's product launch activities. Outside of Apple, he is also a director of Illumina Inc., a medical technology company.

Apple's AI ambitions

The collaboration with OpenAI is part of Apple's overall artificial intelligence strategy, which also includes internal features. Its technology is called Apple Intelligence, which can summarize articles and notifications, create custom emoticons and images, and transcribe voice memos. Siri will also be upgraded to an intelligent digital assistant with more dialogue capabilities than the current version. However, many enhanced features will only be released next year.

At least currently, the collaboration between Apple and OpenAI does not involve monetary transactions. Previously, it was reported that Apple will not pay cooperation fees to OpenAI, but will promote the brand and technology of OpenAI through Apple's distribution system. Apple believes that promoting the OpenAI brand and technology to hundreds of millions of Apple devices is worth no less than or even more than monetary payment.

In addition, Apple is in discussions with Google and the startup company Anthropic to provide consumers with more chatbot features. Apple is still discussing potential agreements with Baidu and Alibaba Group to introduce its artificial intelligence capabilities into Chinese devices. Apple Intelligence will first be released in American English and then promoted globally.