Report: Apple Resumes Talks with OpenAI

Bloomberg reports that Apple has resumed talks with OpenAI to bring generative AI features to the iPhone. The consumer electronics giant was previously known to be in “active negotiations” with Google, and those talks are apparently also ongoing.

There’s a lot at stake here: Perceived as being behind on AI, Apple will hold its big AI coming-out party at WWDC in June, and while on-device AI experiences are a given, little else is. Apple is reportedly working on an AI chatbot that will debut in iOS 18 this fall, and that requires it to partner with one or cloud-based AI companies. Google and OpenAI are two of the more obvious choices—I’m curious Microsoft isn’t in the mix—for what could be one of the most lucrative partnerships in the history of Big Tech.

Apple has discussed AI partnerships with OpenAI, Google, and Anthropic, but the firm had apparently broken off talks with OpenAI at some point and appeared to be focusing on Google. But this latest report, citing multiple sources, claims that Apple recently reopened talks with OpenAI.

This could mean anything. Perhaps Apple is concerned about real or perceived problems with Google Gemini. It might want to partner with multiple companies in this space to create a unique and “bespoke” AI service for its customers. Or it could simply by playing OpenAI and Google against each other to obtain more favorable terms from whichever company it chooses.

With the big WWDC reveal just six weeks away, the clock’s ticking. I’m fascinated to see which company or companies that Apple choose. And how it presents this partnership and the privacy implications to the world.