X owner Elon Musk might be a bit too pissed at Apple right now. The iPhone maker at WWDC 2024 announced the integration of OpenAI’s ChatGPT into its upcoming iOS 18. Musk had earlier warned Apple about its partnership with OpenAI and said that he would ban the use of Apple devices at his companies if it integrated OpenAI’s technology into its OS. Now after this announcement, he might be on his way to type an email to his employees to stop the use of Apple products on the office premises.
Musk earlier highlighted data security concerns to warn Apple about this partnership, however, the actual reason might be a bit different.
Why Is Musk Mad At Apple?
Musk recently raised $6 billion for his AI venture xAI. He also redirected a sizable shipment of Nvidia H100 chips from Tesla to X. According to a CNBC report, a Nvidia memo from December said, “Elon prioritizing X H100 GPU cluster deployment at X versus Tesla by redirecting 12k of shipped H100 GPUs originally slated for Tesla to X instead. In exchange, original X orders of 12k H100 slated for Jan and June to be redirected to Tesla.”
Apparently, in doing so, Musk has violated his fiduciary duties which might have some repercussions later.
Apple does not have an AI product yet, but they do have a platform to distribute it efficiently, iOS. OpenAI on the other hand has an AI product but it does not have a platform. So, when both the companies came together they had both the product as well as the distribution channel. Now, let us look at the position of X and xAI.
Does xAI have an AI product which is ready or has been launched? No, it does not. Does it have a proper distribution channel? Other than X, it does not. Anyone can understand how big of a difference exists now. On one hand, we have a proper OS on which millions of phones run, and on the other hand, we have just a microblogging platform. If both of them start to deploy an AI product at the same time then the success for Apple will be unreachable for X. Grok is the only place where X might be able to deploy an AI product successfully to some extent.
