Weekly Column: Impact of Apple and OpenAI Partnership

In his capacity as a Columnist for California Sports Lawyer®, Founder and Managing Attorney Jeremy Evans has written a column about the impact of the Apple and OpenAI partnership to integrate ChatGPT into Apple products like the iPhone.

You can read the full column below.

OpenAI technology, specifically ChatGPT, will be integrated on Apple devices. When the deal was announced on June 10, 2024, it raised excitement and alarm bells. Just a month prior in May two OpenAI executives resigned from the company. Two executives that were responsible for safety and compliance of artificial intelligence (“AI”).

OpenAI has been a highlight of artificial intelligence business since ChatGPT was released as open source technology on November 30, 2022. The company has a storied and complicated history. Namely with Elon Musk famously helping to found the company and then promptly left when its non-profit mission was changed to include a for-profit branch. OpenAI consists of the non-profit OpenAI, Inc. and its for-profit subsidiary OpenAI Global, LLC. Microsoft owns 49% of OpenAI's equity, having invested $13 billion dollars. OpenAI also relies on Microsoft for computing technology through the Microsoft Azure could platform.

OpenAI’s partnerships and ownership with Apple and Microsoft make it uniquely positioned to effect everyday life through its interaction with human behavior, activity, and influence. Apple is the 9th largest company in the world by revenue, while Microsoft is 30th. There are two billion iPhones, not to mention MacBook’s, iPads, Apple Watch’s, etc., and on those platforms and non-Apple products, Microsoft has its products installed for business and personal use. On a daily basis, this means that OpenAI will have a direct impact on people’s lives and interactions.

It also means that privacy and security concerns become more apparent. It is fair to say that the relationship between OpenAI and Apple is complicated. The problem with privacy law and policy protections are that mostly rely on people to check or check boxes (usually digitally with a toggle) on what data can be collected and shared. Sometimes the defaults are to share data. Most people, even the most technologically savvy among us, are unlikely uncheck or un-toggle the box. Humans want to believe they can trust the companies they are buying from—however, AI continues to push that envelope with unchecked access.

There is also the greater concern of what happens when technology takes over common daily functions that allow humans to stay active, sharp, and with a growth mindset. If we are always being suggested sentence structure, words to use, and what to search for, buy, or consume, what choices do we really have? If we are being given tools to write and create for us, does that take away from our creative abilities or enhance them? The ability to create, learn, and fail, are key instruments to a successful and fruitful life. Where AI becomes an issue is when it takes away the human choice or suggests that the generative AI knows better than the human and acts or advises accordingly.

The rules of operation and standards of practice will be key the successful use of AI. OpenAI already has a deal to collect data from Reddit. OpenAI and Google are the two major players in AI. How they are regulated and utilized will be key to the future success or failure of AI and human interaction.

About Jeremy M. Evans:

Jeremy M. Evans is the Chief Entrepreneur Officer, Founder & Managing Attorney at California Sports Lawyer®, representing entertainment, media, and sports clients in contractual, intellectual property, and dealmaking matters. Evans is an award-winning attorney and industry leader based in Los Angeles and Newport Beach, California. He can be reached at Jeremy@CSLlegal.com. www.CSLlegal.com.