Microsoft's close relationship with OpenAI is facing a potential challenge as the AI research organization explores a partnership with Apple. Reports suggest that OpenAI and Apple have been in talks since mid-2023, with discussions centered around integrating OpenAI's generative AI technology into Apple's upcoming iOS 18 update. While details of the deal remain undisclosed, the prospect of Apple incorporating OpenAI's technology into its products has raised concerns at Microsoft.

The concern stems from the potential surge in demand for servers that would accompany the widespread adoption of OpenAI's technology by Apple. To address this issue, OpenAI CEO Sam Altman met with Microsoft's CEO Satya Nadella. Microsoft, which has invested $13 billion in OpenAI, is reportedly seeking a share of the profits that OpenAI would receive from its partnership with Apple. This move reflects Microsoft's desire to mitigate any adverse effects on its own server infrastructure caused by increased demand resulting from Apple's integration of OpenAI's AI features.

Apple's interest in leveraging generative AI technology, such as OpenAI's GPT models, for enhancing Siri and other services poses both an opportunity and a challenge for Microsoft. While Apple's adoption of OpenAI's technology could lead to innovative AI-driven features for its devices, it also threatens to disrupt Microsoft's existing partnership with OpenAI. Microsoft's request for a share of the profits underscores the competitive dynamics at play in the AI space, where major tech players vie for access to cutting-edge AI capabilities and seek to protect their investments in AI research and development.