Elon Musk’s Feud with Apple Over OpenAI Deal Sends Shockwaves Through Tech Industry

Elon Musk, CEO of Tesla and SpaceX, has issued a bold threat to ban the use of Apple devices at his companies. This announcement comes in response to Apple’s recent partnership with OpenAI, a company Musk co-founded but has since distanced himself from due to its direction and management.

Musk’s dissatisfaction stems from Apple’s collaboration with OpenAI, particularly its integration of OpenAI’s artificial intelligence technologies into Apple products. The tech mogul perceives this partnership as a direct affront to the foundational goals of OpenAI, which he claims have been significantly altered since his departure.

OpenAI’s recent agreements with both Microsoft and Apple have cemented its position as a leading AI entity, a development Musk views with skepticism and concern​.

“If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies,” Musk wrote in a post on X. “That is an unacceptable security violation.” He added that “visitors will have to check their Apple devices at the door, where they will be stored in a Faraday cage.”

“It’s patently absurd that Apple isn’t smart enough to make their own AI, yet is somehow capable of ensuring that OpenAI will protect your security & privacy!” he added. “Apple has no clue what’s actually going on once they hand your data over to OpenAI. They’re selling you down the river.”

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According to the BBC, Apple said at its Worldwide Developer Conference on Monday that whereas data submitted via ChatGPT on OpenAI’s platform is stored in OpenAI’s servers, users of iPhones, iPads, and Macs won’t have their data logged.

ChatGPT-4o will be integrated with Siri, with other apps. In Notes, for example, users can get the answers to math problems written out by hand, and in Mail, the technology can help craft messages.

“It draws on your personal context to give you intelligence that’s most helpful to and relevant for you, and it protects your privacy at every step,” Apple senior vice president of software engineering Craig Federighi said, per the BBC.

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The crux of Musk’s discontent lies in OpenAI’s evolution from its original mission. Initially, OpenAI was established as a non-profit organization dedicated to making AI accessible to all. However, the company has transitioned into a capped-profit model, with significant investments from tech giants like Microsoft and Apple. This shift, according to Musk, contradicts the core values that OpenAI was built upon​.

Microsoft’s substantial investment in OpenAI and the subsequent partnership with Apple have positioned OpenAI as a pivotal player in the AI industry. Microsoft’s integration of OpenAI’s technology across its platforms and services has further solidified this stance, while Apple aims to leverage OpenAI’s advancements to enhance its own product offerings. This strategic move by Apple has not only stirred Musk’s ire but also raised concerns about the monopolization of AI technology by a few dominant corporations​.

The immediate aftermath of Musk’s threat was felt in the stock market. Apple’s shares experienced a noticeable dip, reflecting investor anxiety over potential disruptions in the use of Apple devices within Musk’s companies. Tesla and SpaceX are major players in the tech and space industries, and a ban on Apple products could influence market dynamics and consumer behavior​.

According to Forbes:

Apple’s efforts to narrow its artificial intelligence gap with rivals by partnering with OpenAI did little to move Wall Street. The iPhone maker’s stock price fell about 2% in Monday after-hours trading.

Tuesday morning, investors changed their mind — sending Apple stock up 6% to $205 a share, reported Forbes.

“Apple Intelligence” — the term repeated about 60 times at Apple’s June 10 Worldwide Developers Conference, according to the Wall Street Journal — features a partnership with OpenAI’s ChatGPT. It aims to breath new life into Siri, Apple’s aging voice assistant.

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The broader implications of Musk’s threat extend beyond the immediate financial impact. It underscores the growing tensions within the tech industry regarding control and direction of AI development. Musk has been a vocal critic of current AI trajectories, advocating for greater transparency and ethical considerations. His concerns about OpenAI’s direction and its partnerships are rooted in a broader debate about the ethical deployment of AI technologies and the potential risks associated with their monopolization​.

In a rapidly evolving tech landscape, Musk’s bold stance against Apple and OpenAI serves as a reminder of the complex ethical and strategic challenges that define the AI industry. As companies like Apple and OpenAI continue to push the boundaries of innovation, the need for balanced, ethical oversight becomes increasingly critical. Musk’s actions, while contentious, contribute to this ongoing discourse, emphasizing the importance of maintaining ethical integrity in the pursuit of technological advancement​.

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By Ella Ford

Ella Ford is a mother of two, a Christian conservative writer with degrees in American History, Social and Behavioral Science and Liberal Studies, based in the Tulsa, Oklahoma area.

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