Apple & OpenAI: Elon Musk Threatens Apple Device Ban

The billionaire behind Tesla, SpaceX, and xAI has warned that he will prohibit Apple devices from being used within his organizations if Apple incorporates OpenAI into its operating system

Elon Musk has responded to Apple’s announcement that it will collaborate with OpenAI in conjunction with its new “Apple Intelligence” suite, which is escalating the AI contest.

The Tesla CEO and billionaire announced on X (formerly Twitter) that he would prohibit Apple devices from all his companies if the tech behemoth integrates OpenAI at the operating system level.

Musk expressed dissatisfaction with the security breach, stating, “That is an unacceptable security violation.” Musk is also the owner of X. “It is patently absurd that Apple is incapable of developing its own AI, yet it is somehow able to guarantee that OpenAI will safeguard your security and privacy.”

Tesla, a prominent electric vehicle (EV) manufacturer, is led by Elon Musk, who also serves as the CEO of SpaceX. This astronautics company has successfully launched astronauts to the International Space Station. His new AI company, xAI, has secured US$6 billion in its Series B funding round to deliver its initial products to the market.

AI privacy will continue to be a commercial priority.
Elon Musk’s remarks were issued immediately following Apple’s placement of a bid in the global AI competition, following its apparent lack of transparency regarding its feature development.

At its annual Worldwide Developers Conference (WWDC) in California, the technology colossus has recently disclosed a variety of new AI capabilities, which it is branding as “Apple Intelligence.” Apple has also confirmed that it will be updating its virtual assistant Siri to enable it to direct certain inquiries to OpenAI’s ChatGPT chatbot, according to another announcement from the company.

It is private, powerful, and personal, and it is seamlessly incorporated into the applications you use daily.

Apple Intelligence is the next chapter in the development of artificial intelligence

“The update to Siri is long overdue and will be welcomed after years in which conversing with Siri felt more akin to conversing with a toddler than with other voice assistants,” comments Ben Wood, Chief Analyst and CMO at CCS Insight. “The first step will be improvements in Siri’s ability to understand what you are asking, and the partnership with OpenAI means that Apple can immediately benefit from adding ChatGPT.”

This partnership will allow Apple consumers to utilize ChatGPT technology on all their devices.

Elon Musk is concerned that such an integration could result in security breaches, even though both companies have explicitly stated that the partnership will provide robust privacy safeguards to prevent compromising personal customer data.

Apple has declared that users must not establish a ChatGPT account to utilize the integration. Consequently, OpenAI will not accumulate any queries or data. Similarly, Apple mandates that the user consent to sharing information with ChatGPT before sending a query, but it specifies that queries will not be sent by default.

My company will prohibit Apple devices if Apple incorporates OpenAI at the OS level. That constitutes an appalling breach of security.

The tech giant emphasized at the conference that it will utilize a combination of cloud computing and on-device processing to fuel its new features. Apple is claiming to establish a new standard for privacy in AI by employing independent experts to inspect its code to guarantee enhanced security.

“The collaboration with ChatGPT is a significant advancement that enhances Apple’s AI capabilities, and users will appreciate the addition of new features such as Siri, which has been significantly enhanced,” Ben continues. “This does expose Apple to a degree of vulnerability, as it has no control over OpenAI’s models. However, it also establishes a remarkable headline AI partnership for the Apple ecosystem.”

“However, this is just the first step in what will be a long journey to improve Siri to finally deliver against the promises Apple made when it launched the service more than 10 years ago with the iPhone 4s.”

Elon Musk’s ongoing conflict of interest: From Open AI to xAI

It is widely recognized that Elon Musk has a convoluted historical relationship with OpenAI. In 2015, he played a crucial role in the startup’s inception, working alongside current CEO Sam Altman. However, in 2018, he departed the company due to a conflict of interest.

Musk has since filed a lawsuit against OpenAI and Sam Altman in March 2024, asserting that the company has strayed from its original mission to develop AI for the benefit of humanity rather than for profit. Additionally, he formed xAI as a direct competitor to OpenAI and developed an alternative to ChatGPT.

In its most recent funding round, xAI was valued at US$24 billion.

In Apple’s eyes, the dispute indicates the divergent perspectives regarding the rapid expansion of AI. Businesses are increasingly competing to adopt the most recent versions of the technology, which has resulted in more frequent discussions regarding the sustainability of newer models.

Apple has also strategically timed its announcements to coincide with its lagging position in the global AI development competition. The company was recently surpassed by global chipmaker Nvidia as the second-most valuable company, shortly after Microsoft succeeded it as the most valuable company at the beginning of 2024.

In recent months, Apple has faced criticism for its delay in implementing generative AI (Gen AI) and for the cessation of significant initiatives attributed to a decrease in industry demand.