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Microsoft is jealous of OpenAI and Apple is flirting

  • May 31, 2024
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Microsoft does not like the deal between OpenAI and Apple. The potential competition from Apple and the overcrowding of its own data centers are cause for concern. Earlier

OpenAI Microsoft Apple

Microsoft does not like the deal between OpenAI and Apple. The potential competition from Apple and the overcrowding of its own data centers are cause for concern.

Earlier this week, it was announced that Apple is adopting OpenAI as its AI partner. Apple hopes to use OpenAI to accelerate the development and launch of AI features for iOS. However, OpenAI already has a close business relationship with Microsoft, which feels betrayed by the company it has pumped billions of dollars into.

According to The Information, Microsoft CEO Satya Nadella has summoned OpenAI chief Sam Altman for an explanation. It is not yet clear what exactly the deal between Apple and OpenAI entails, but rumors suggest that both companies would work together on an improved version of Siri or even an entirely new chatbot for the Apple ecosystem.

Apple is not really in the AI ​​race right now, and Microsoft will no doubt want to keep it that way. The iPhone maker can reach more than two billion people with its mobile ecosystem, which is significantly more than the estimated number of Windows users worldwide. Microsoft’s Copilot already runs on iOS, but Apple has a tradition of prioritizing its own products.

Overcrowding in data centers

On the other hand, Microsoft has a potentially lucrative deal in store. Apple has a handful of its own data centers, but it doesn’t have anywhere near the capacity that Microsoft does. Since Microsoft is OpenAI’s regular cloud partner, Apple’s AI products could also end up in Microsoft’s data centers. However, Nadella doesn’t seem confident that the company can handle the influx of Apple users.

Apple’s AI plans are likely to become clearer at the next edition of WWDC on June 10. The acquisition of Apple has given Sam Altman a firmer seat at OpenAI, writes The Information. That seemed very different six months ago, when the board tried in vain to exclude Altman. With his biggest opponents out, Altman is now uncontourable become.

Source: IT Daily

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