OpenAI’s Hardware Pivot: Rejecting Apple to Focus on Jony Ive-Designed AI Wearables

When Apple and Google announced their partnership, which will make the Mountain View-based tech giant the artificial intelligence (AI) provider for Siri and certain Apple Intelligence experiences, it immediately raised a few questions. From data privacy to implementation of the technology, almost all major concerns have been surfaced online, but not much has been said about the OpenAI angle. The iPhone maker has an existing deal with the AI giant, and it already handles the more complex queries sent to Siri.

OpenAI Reportedly Chose Not to Build AI Model for Apple

According to a Financial Times report, OpenAI decided “to not become the custom model provider for Apple.” Citing an unnamed source, the publication claimed that the ChatGPT-maker has instead shifted its focus to developing its own lineup of AI-powered devices, which are being designed by ex-Apple designer Jony Ive.

This is interesting as it shows that the iPhone-maker did not overlook OpenAI. Instead, the company likely reached out to the AI giant, which informed it that it would not be able to take on the commitment. This also corroborates with the ongoing code red that OpenAI CEO Sam Altman imposed last month to halt any non-ChatGPT project.

While not a lot is known about the AI hardware that the Ive and OpenAI is developing, a report last month said that there could be as many as three different devices, with one of them being an AI pen. A wearable is also said to be among the lineup, and the third device could be a speaker. Ive had recently said that the devices could be launched within the next two years.

Separately, FT noted that Apple's strategy in the AI space is not to become a leader but rather use its distribution network as leverage to forge partnerships with AI companies. The company has already developed the capacity for computing with in-house silicon, Private Cloud Compute, and a purported AI server chip and data centres. This sets Apple in a position where it can partner with a number of AI companies and outsource the core technology. The report says that while the Cupertino giant will not be playing the market dominance game when it comes to AI, it will be the kingmaker.