Apple’s OpenAI partnership: A boost for Siri or a trojan horse for Microsoft?

by | Jun 10, 2024 | Technology

VB Transform 2024 returns this July! Over 400 enterprise leaders will gather in San Francisco from July 9-11 to dive into the advancement of GenAI strategies and engaging in thought-provoking discussions within the community. Find out how you can attend here.

Apple unveiled a new partnership with OpenAI at its Worldwide Developers Conference (WWDC) today, promising to bring advanced artificial intelligence capabilities to the iPhone, iPad and Mac. But as the dust settles on Apple’s splashy keynote, the biggest story isn’t Apple’s full-throated embrace of AI — it’s the growing distance between Microsoft and its one-time AI darling, OpenAI.

Over the past year, Microsoft has been aggressively expanding its AI partnerships and initiatives well beyond OpenAI. The Redmond-based tech giant has inked multi-billion dollar deals with Hitachi to co-develop industry-specific AI solutions, with Mistral to create next-generation natural language models, and with a host of other firms to explore AI applications in healthcare, finance, manufacturing, and more. 

Microsoft is also investing staggering sums to train its own AI models in-house. The crown jewel is reported LLM named “MAI-1” built to directly compete with OpenAI’s language models, in addition to Microsoft’s smaller models in the Phi 3 family made specifically for enterprise applications. The implicit message in all this feverish activity is clear — Microsoft refuses to be solely dependent on OpenAI or any single partner for its AI ambitions.

OpenAI’s quiet power struggle precipitates strategic shift  

Microsoft’s AI diversification seems to have been precipitated, at least in part, by a quiet power struggle and leadership shakeup at OpenAI last year. Co-founder and CEO Sam Altman, the mercurial visionary who led OpenAI’s transformation from non-profit research lab to for-profit juggernaut, was abruptly ousted as CEO in late 2023. He has since been reappointed as CEO but not without lasting ripple effects.

VB Transform 2024 Registration is Open

Join enterprise leaders in San Francisco from July 9 to 11 for our flagship AI event. Connect with peers, explore the opportunities and challeng …

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VB Transform 2024 returns this July! Over 400 enterprise leaders will gather in San Francisco from July 9-11 to dive into the advancement of GenAI strategies and engaging in thought-provoking discussions within the community. Find out how you can attend here.

Apple unveiled a new partnership with OpenAI at its Worldwide Developers Conference (WWDC) today, promising to bring advanced artificial intelligence capabilities to the iPhone, iPad and Mac. But as the dust settles on Apple’s splashy keynote, the biggest story isn’t Apple’s full-throated embrace of AI — it’s the growing distance between Microsoft and its one-time AI darling, OpenAI.

Over the past year, Microsoft has been aggressively expanding its AI partnerships and initiatives well beyond OpenAI. The Redmond-based tech giant has inked multi-billion dollar deals with Hitachi to co-develop industry-specific AI solutions, with Mistral to create next-generation natural language models, and with a host of other firms to explore AI applications in healthcare, finance, manufacturing, and more. 

Microsoft is also investing staggering sums to train its own AI models in-house. The crown jewel is reported LLM named “MAI-1” built to directly compete with OpenAI’s language models, in addition to Microsoft’s smaller models in the Phi 3 family made specifically for enterprise applications. The implicit message in all this feverish activity is clear — Microsoft refuses to be solely dependent on OpenAI or any single partner for its AI ambitions.

OpenAI’s quiet power struggle precipitates strategic shift  

Microsoft’s AI diversification seems to have been precipitated, at least in part, by a quiet power struggle and leadership shakeup at OpenAI last year. Co-founder and CEO Sam Altman, the mercurial visionary who led OpenAI’s transformation from non-profit research lab to for-profit juggernaut, was abruptly ousted as CEO in late 2023. He has since been reappointed as CEO but not without lasting ripple effects.

VB Transform 2024 Registration is Open

Join enterprise leaders in San Francisco from July 9 to 11 for our flagship AI event. Connect with peers, explore the opportunities and challeng …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]

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