Is Apple’s Partnership With ChatGPT A Privacy Nightmare?
At Apple’s WWDC24, CEO Tim Cook unveiled their Apple Intelligence technology that will soon be available on their latest iPhones along with some newer iPads and Macbooks.
The news didn’t come as much of a surprise as Apple was expected to finally announce its move into the AI space. But as most people know, Apple tends to be a late mover when it comes to new technology. They prefer to enter markets late with a product that is easily digestible for the masses and also designed to spur hardware sales.
The WWDC24 announcement was not much different except for one key area. Apple is partnering with AI powerhouse OpenAI for many of the advanced features in Apple Intelligence.
The financial details, and most other details, have not been disclosed regarding the Apple/OpenAI deal.
This partnership is somewhat unique when it comes to Apple product launches. Apple tends to release its own technology, not just repackage existing software.
For example, just about everything shown off during WWDC24 can be done now using free AI apps. Many Google and Samsung phones even have those features baked into the phone’s operating system. So there’s not much that is uniquely Apple in all of this.
This begs the question as to what is the nature of the OpenAI partnership with Apple and what it will look like in practice. OpenAI’s somewhat checkered history and rocky relationships don’t exactly mesh well with the Apple image.
So, is this partnership setting up a possible PR and branding nightmare for Apple?
Microsoft’s Rocky Relationship With OpenAI
Microsoft was the first big tech player to bet big on OpenAI and incorporate its technology into its products. Most of Microsoft’s Copilot is based on ChatGPT and the underlying LLM created by OpenAI.
However, the $10 billion investment Microsoft has made in OpenAI hasn’t guaranteed a smooth marriage.
It’s been reported that the sudden ousting and then rehiring of Sam Altman by the OpenAI board spooked Microsoft executives. This spurred them to start accelerating work on their own internal AI systems for enterprise products and on-device features.
If true, this is a smart move by Microsoft. OpenAI likely doesn’t need these partnerships as much as Microsoft and Apple do, at least for now. So hedging by investing heavily in their own AI makes smart business sense for Microsoft.
This isn’t lost on OpenAI either. They know they’re currently the leaders in AI and any product they launch will immediately get the attention of the entire world.
This has led them to have a somewhat aloof relationship with their partners such as Microsoft. But what does this mean for Apple, who isn’t used to playing this type of game with their technology partners?
Apple’s Privacy Reputation
As smart and savvy as Apple is, they are used to being the 500-pound gorilla in the room. Whether it’s their App Store policies or other aspects of their closed system, it’s the Apple way or the highway.
Now that they are partnering with OpenAI, there is a new dynamic they will have to deal with that is similar to the one that Microsoft has with OpenAI. Reluctant partners who are married on paper, but live in separate houses and have their own secret motivations.
That’s something that stuck out during WWDC24. It was one of the first times Apple was seen as the older, stuffy company trying to partner with the “cool” new technology. It wasn’t the best look and investors seemed to agree as the stock fell slightly after the presentation.
One area that could create problems for Apple is related to privacy. Apple holds one of the highest reputations for privacy in the tech world. That’s not saying much when it comes to technology in general, but Apple is still considered one of the most responsible tech companies when it comes to user privacy.
On the other hand, OpenAI has a nearly opposite reputation for privacy. Just in the last few weeks, several high-level employees have left OpenAI over concerns with how the company uses data, develops technology, and safety concerns about privacy and other issues.
While I can’t say for sure, there’s little doubt that one thing ChatGPT is after with its Apple partnership is the user data. That Apple user data is a goldmine and OpenAI can use it to train their AI future models.
So how does Apple reconcile this problem? On one hand, they have a stellar privacy reputation to uphold. On the other hand, they’re partnered with OpenAI which has a relatively poor reputation when it comes to privacy and ethics. Not to mention, OpenAI’s seemingly weekly scandals involving everything from high-level departures to using Scarlett Johansson’s voice without permission.
OpenAI is no doubt operating at breakneck speeds, and this is part of why they are leading the AI arms race. But with that speed, they are also playing fast and loose with the rules.
How does a measured company like Apple reconcile these two opposing cultures?
That’s the billion-dollar question. But unlike Microsoft which is developing its own internal AI to hedge their possible falling out with OpenAI, Apple appears to have no such plan.
The real answers will come when these new Apple Intelligence features start to roll out and consumers react to the possible privacy implications.
Elon Musk has already stated he may require anyone entering X headquarters to place their Apple devices in a Faraday cage due to privacy concerns.
That may be an extreme take, but privacy may be a large and looming issue that Apple has to grapple with as it explores partnerships that require deep integration with its operating systems.
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James La Forte is an IT professional & freelance writer focusing on technology, business & finance. His work has been featured in U.S. News & World Report, TechRepublic, MarketWatch, Gartner Insights, and other publications.