Apple investment into OpenAI could raise concerns about Google search deal: BofA
by
Contributor since / Followers
Contributor since / Followers
4 months ago
stockcam
- Reports that Apple (NASDAQ:AAPL) could invest into OpenAI’s latest funding round may raise concerns about the company’s search deal with Google (NASDAQ:GOOG) (NASDAQ:GOOGL), Bank of America said.
- “A large direct investment by Apple into OpenAI could raise concerns on potential AI partnership as a long-term alternative to Google search,” Bank of America analysts wrote. “At the very least, a capital infusion should help OpenAI compete vs. Google and Amazon.”
- Apple has a deal with Google in which the latter pays the former to be the default search engine on iOS devices. According to testimony provided during the Dept. of Justice’s antitrust lawsuit against Google, Google paid Apple roughly $20B in 2022 per their agreement.
- A number of companies, including Apple, are considering investing in OpenAI’s latest funding round, which would value the generative artificial intelligence company at roughly $100B.
- Apple also has a partnership with OpenAI, having unveiled it at the former’s developer conference in June. OpenAI’s ChatGPT will be integrated into Siri, starting with its ChatGPT-4o large language model. If Siri needs to use ChatGPT, it will ask users with a pop-up if they want to share with ChatGPT.