Cupertino has disclosed it artificial intelligence goals, complicating the relationship between rivals Apples and Google
Key Factors
- The chart of the day
- What we’re watching
- What we’re reading
- Economic data releases and earnings
This is because the sometimes-rival device firms work together on search and internet advertising. However, the alliance, which was prominently highlighted in a historic antitrust lawsuit challenging Google’s search engine dominance, may face fresh difficulties as AI affects how customers seek information online.
Apple OpenAI
For over two decades, Apple has made Google the default search engine in its Safari browser. Apple redirects traffic from its massive user base to Google’s search company. Every year, Google pays Apple over $18 billion in exchange for default position.
However, much to the joy of investors Apple is working on another deal. Enter Sam Altman.
Apple has partnered with OpenAI to offer ChatGPT to the iPhone. It’s part of a bold push to catch up with Big Tech rivals that have invested heavily in AI.
Later this year, iPhone users will have free access to the chatbot, which will integrate with Siri and other apps, providing access to a knowledge base and enabling OpenAI a ticket to mainstreaming AI technology.
Apple’s iPhones, filled with increasingly powerful versions of ChatGPT, would reduce the need to use Google search.
If a substantial percentage of users begin engaging with the web primarily through Siri rather than a search box, even the heavy influence of default status may mean very little for the future of search traffic
Apple’s partnership with OpenAI comes at a critical juncture for Google’s own AI efforts.
The search engine giant recently introduced AI Overviews a service that provides users with concise answers to their search queries without the need to surf around the web However, Overviews, along with a prior image production tool, drew immediate criticism once users found the AI elements were producing ludicrous or erroneous information.
The problematic debuts established a pattern of failed releases. They’ve perpetuated the myth that Google’s rush to plant its AI flag demonstrated mismanagement and strategic weakness. More serious issues are also at play.
If chatbots and other software powered by large language models (LLMs) are as transformative as tech CEOs predict, the search industry is set for significant change.
Every new agreement OpenAI signs with media and technology businesses can be interpreted as an attempt to strengthen an alternative to search while diverting focus away from Google’s empire.
Apple may still collaborate with Google, potentially eventually incorporating Gemini, Google’s set of generative AI models, while also developing in-house AI technologies.
As per Yahoo Finance – Apple’s OpenAI collaboration doesn’t eclipse its long union with Google. But it adds a wrinkle to the relationship. In this early stage of a new tech paradigm, a fresh set of defaults is up for grabs.
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