Apple announced its partnership with OpenAI at its WWDC 2024 event earlier this year. It was later revealed that while the new partnership could give OpenAI access to millions of iPhone users, Apple will not be paying the company to use its technology in iOS 18. However, a new report from Bloomberg's Mark Gernman reveals that Apple will also take an observer role in OpenAI as part of its deal with the Sam Altman-led company.
Phil Schiller, Apple's head of the App Store and former marketing chief, has reportedly been selected as an observer to the board. The observer role means Schiller can attend OpenAI's board meetings but cannot vote on board decisions.
Schiller retired as Apple's head of marketing in 2020 and now serves as an “Apple Fellow.” In addition to overseeing the App Store, he is also in charge of Apple's product launch events. In addition to his work at Apple, Schiller also serves on the board of directors of medical technology company Illumina.
An observer role on the board puts Apple in a similar position to Microsoft, which has a checkered history: The two companies are fierce rivals in the PC race, but Satya Nadella's company has previously offered lucrative deals to replace Google as the iPhone's default search engine.
Garnman said Apple's inclusion on the OpenAI board could pose a problem if discussions about AI initiatives between Microsoft and OpenAI were to take place at the board meeting, but he noted that board members typically agree to recuse themselves and leave meetings when sensitive discussions arise.
Notably, Microsoft has invested roughly $13 billion in OpenAI, giving the AI startup access to many of the cloud and computing resources it needs to run ChatGPT and other AI technologies.
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