Technology giant Apple (AAPL) is going to be given an observer role on artificial intelligence (AI) company OpenAI’s board of directors, according to a report from Bloomberg News.
Apple is apparently going to receive a non-voting board seat as part of its deal to offer OpenAI’s ChatGPT AI features on its future devices, including the iPhone.
The board seat for Apple could complicate matters between OpenAI and Microsoft (MSFT), which is both a long-time rival of Apple and the largest financial backer of OpenAI.
Since early 2023, Microsoft has invested $13 billion U.S. in OpenAI and is integrating the start-up company’s AI features into its Bing search engine and other areas of its business.
Microsoft currently has a non-voting seat on OpenAI’s board of directors and holds a 49% stake in the company.
Microsoft is also the exclusive cloud-computing provider for OpenAI and has a history of cooperation with the company.
Analysts immediately questioned why Apple is getting the same access to OpenAI’s board members and decision-making process as Microsoft without providing any financial support to the start-up.
Apple isn’t paying OpenAI as part of their partnership arrangement.
In recent months, Microsoft has taken steps to lessen its dependence on OpenAI, establishing its own internal AI unit earlier this year.
Apple’s stock has risen 15% over the past 12 months and currently trades at $220.27 U.S. per share.
OpenAI is privately held and its stock does not trade on a public exchange.
