Open Ai’s partnership with Apple

Microsoft Corp (NASDAQ: MSFT) is expressing concerns about certain business dealings involving OpenAI, particularly a potential agreement between OpenAI and Apple Inc (NASDAQ: AAPL).

Recently, Microsoft CEO Satya Nadella met with OpenAI CEO Sam Altman to discuss a deal that would integrate OpenAI services into Apple products. According to Business Insider, Nadella’s concerns revolve around the potential impact this agreement could have on Microsoft’s product ambitions.

If the deal with Apple proceeds, it would reinforce Altman’s control over OpenAI following his brief ouster last fall. Altman, who has already ousted several rivals from the board, aims to replace Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) as Apple’s search partner for Safari and to build AI chip factories.

However, Microsoft, a significant investor in OpenAI, is worried about the potential impact on its own AI ambitions, reports the New York Post. Apple considered both Google and OpenAI for this multi-billion-dollar deal, which, if confirmed, would be a significant victory for Altman amid scrutiny from former employees and board members.

Tensions within OpenAI have reportedly been brewing since Altman’s brief ouster in November. An insider told The Financial Times that Microsoft had pressured OpenAI to prioritize commercial products, exacerbating existing tensions among executives.

Despite these challenges, OpenAI’s valuation has soared to $90 billion since the launch of ChatGPT. Altman is considering converting OpenAI into a for-profit corporation to attract significant capital and expand its AI infrastructure. OpenAI’s annual revenue has surpassed the $2 billion mark, and the company aims to double this revenue by 2025.

Over the past 12 months, Microsoft stock has gained over 26%, while Apple has gained 8%.

Price Actions: MSFT shares were trading higher by 0.06% at $414.93 in premarket trading at last check Friday. AAPL was down 0.14% at $191.03.

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