- For years, a deal between Apple and Google dominated America’s Internet.
- Apple is about to announce a new agreement that could do the same for the AI era.
- Tim Cook is expected to announce a partnership with OpenAI at WWDC to bring ChatGPT to the iPhone.
When Steve Jobs launched the first iPhone in 2007, it was a landmark moment in Apple’s history that included the CEO of another Silicon Valley company: Google.
Eric Schmidt, then the leader of Google, joined Jobs on stage as a symbol of the growing relationship between their companies. Two years earlier, in 2005, Apple and Google struck a deal to make Mountain View’s search engine the default in the Mac’s Safari browser.
With the iPhone, Google was about to be put front and center as the primary search engine for the handheld device Apple staked its future on. It’s a relationship that has probably determined who has dominated America’s internet ever since.
As the iPhone grows in popularity in the U.S. — Apple’s smartphones have a market share of more than 50 percent as of 2022 — Google’s reach has also expanded, giving the already dominant search engine more exposure.
Although the deal is now the focus of a US government lawsuit filed against Google in 2020, it has proven powerful in shaping Americans’ internet experience and hugely lucrative for Apple: Google paid $20 billion to keep the deal in 2022.
Now, Apple is preparing to unveil its plans to dominate the Internet again — with the help of another Silicon Valley company.
Apple’s plan to dominate the Internet again
On Monday, when CEO Tim Cook kicks off Apple’s Worldwide Developers Conference (WWDC), he is expected to unveil a new vision for artificial intelligence by announcing a partnership with OpenAI.
According to a Wednesday report from Bloomberg’s Mark Gurman, Apple is almost ready to announce that the ChatGPT maker’s technology will be integrated into the iPhone operating system.
For Apple, the partnership would represent a bold attempt to bring generative AI features to its devices after months of questions from investors, developers and others about the company’s plans to tap into Silicon Valley’s most talked-about technology.
Although Apple usually keeps its plans top secret, there was a growing sense that the company was falling behind on AI. Rivals like Google and Meta were charging ahead with their own AI models, while Microsoft partnered with OpenAI as early as January 2023.
But by bringing an active AI player like the creator of ChatGPT into its mix, Apple will be hoping it can shape a new internet experience for iPhone users in the age of AI.
In a research note, Wedbush analysts, including Dan Ives, wrote that WWDC could be “Apple’s most important event in more than a decade as the pressure to deliver a generative AI stack of technologies to developers and consumers” grows.
For OpenAI, the deal will give it a ticket to one of the most powerful distribution systems in the world: more than one billion active iPhones.
Time will tell if the deal is as powerful as Apple’s search agreement with Google. Although OpenAI has emerged as the face of the generative AI boom thanks to the early-mover advantage gained from the launch of ChatGPT, it has also been mired in controversy.
No deal done
Its AI has been criticized for making critical mistakes and being prone to hallucinations, calling into question its reliability. The company itself has also been the subject of controversy, as its CEO Sam Altman has come under fire from current and former employees over safety promises.
It’s worth noting that neither company has yet officially confirmed the deal. Apple was previously reported to have held discussions with Google about an artificial intelligence partnership, but OpenAI seems to have earned its favor.
One thing’s for sure: Apple is about to unveil to the world its plans to dominate the internet in the age of AI.
