AI in practice

Apple's OpenAI deal reportedly fixed – and Microsoft is worried

Matthias Bastian
the apple logo generated within a neural network, it's just being constructed

Midjourney prompted by THE DECODER

Update from May 30, 2024:

According to sources from The Information, the deal between OpenAI and Apple is done. How and to what extent Apple will use OpenAI's technology is not yet known.

At Microsoft, the deal is reportedly met with little enthusiasm, as the company wants to attract more mainstream customers through OpenAI's technology and its own Copilot offerings. Discussions between OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella are said to have taken place.

The Apple deal could potentially be worth billions and solidify Altman's power over the company at a time when he is facing increasing criticism. Altman is also said to be considering turning OpenAI into a regular company, possibly a public one.

OpenAI currently has an unusual structure in which a nonprofit oversees the for-profit company. This became Altman's undoing when he was briefly ousted from his position last November. With the new structure, investors want him to receive a stock package. It would be the first time that Altman himself would have a direct financial stake in OpenAI.

Original article from May 27, 2024:

Apple's "Project Greymatter" aims to bring AI-powered convenience to everyday life

At WWDC, Apple will showcase its approach to AI, focusing on everyday applications. And ChatGPT is coming to iOS.

At its WWDC developer event in June, Apple will focus on tools normal people can use in their daily lives, says Bloomberg reporter Mark Gurman.

"Project Greymatter" is at the heart of the new plan - a group of AI tools Apple wants to add to key apps like Safari, Photos and Notes. This also has OS features like better notifications.

Less heavy AI tasks will run right on the devices. More intense work will go to the cloud, where M2 Ultra chips in data centers will take over.

Generative AI features include:

Siri gets an upgrade with a more natural-sounding voice and more capabilities thanks to Apple's own Large Language Models. Developer tools like Xcode also get an AI upgrade.

There's one gimmick Apple can't resist: Generative AI for emojis that suggests individual emojis based on chat history

Gurman says a lot of work is going into smart summaries. The tech should give users a roundup of missed notifications, texts, sites, messages, files and other media.

The rumored OpenAI deal is likely to happen: Apple is working on a chatbot, but won't show it yet. Instead, OpenAI's ChatGPT will be shown as a chatbot add-on in iOS18. Apple is also said to be working on a Google deal for Gemini, but this probably won't be shown in June.

Overall, Gurman says, Apple's WWDC motto for AI is to catch up rather than overtake. Many features are also on Google's Pixel phones and other hardware, some not quite ready, so Apple could market them as "preview." The company is hoping to capitalize on its huge install base and, as usual, is putting privacy at the center of its marketing.

Sources: