Apple is set to integrate artificial intelligence into its new phones, but billionaire Elon Musk has threatened a ban of the devices at his companies over what he alleges are security fears.
The tech giant held its annual developer conference in California on Monday during which it made the long-awaited announcement that it was bringing AI to its devices.
Dubbed Apple Intelligence, it is a collection of features that includes text and image generation and an improved Siri voice assistant.
This will be supported by integrating the already popular ChatGPT into the company’s phones.
However, Tesla and X owner Elon Musk, who has a long history with ChatGPT’s owners OpenAI, warned that he would ban iPhones from all of his companies over the move.
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Musk has a fractious relationship with OpenAI – he was a founder of the company but has since turned against it and accused it of failing to follow its founding principles.
Apple’s new AI system would revamp Siri, allowing it to mine information from across a user’s apps.
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But South African billionaire Musk said the decision was an “unacceptable security violation” and said that if OpenAI is integrated at the OS level “then Apple devices will be banned at my companies”.
He accused the Silicon Valley company, without evidence, of turning over user data to OpenAI.
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Image: Elon Musk. Pic: PA
Image: Apple’s WWDC developer conference this week held at Apple Park headquarters. Pic: AP
In their announcement, Apple said that the new AI system would be rooted in privacy, carrying out most processes on the device itself.
Any computing done externally would be done through a new procedure called private cloud computer, Apple said – and claimed it would keep users’ data secure.
They added that users would have to give permission before any request was shared with OpenAI.
The row reflects diverging views surrounding AI, and how quickly the technology is being developed and implemented.
When OpenAI announced ChatGPT back in November 2022 it fired the starting gun on the tech industry’s AI arms race.
The deal will also put ChatGPT, the highflying AI start-up, directly into the phones of possibly millions of users and place Apple alongside other tech companies in betting that AI is the future of their industry.
Apple chief executive Tim Cook said the AI features would be “indispensable” in the company’s products in the years ahead.
But as recently as May of last year, the Washington Post reported that Mr Cook was less enthusiastic on AI, saying generative AI still had “a number of issues that need to be sorted”.
After Monday’s conference, Apple executives said the company was keen to do more deals with other AI chatbots to give users more options for generative tools.
Popularly used AI models have often been pointed out as having faults, including making up information.
Donald Trump has confirmed he will meet Sir Keir Starmer “very soon” after the prime minister “asked to come” to the US.
Mr Trump discussed details of his phone call with Sir Keir while taking questions from the media in the White House’s Oval Office on Friday.
“He asked for a meeting, and I agreed to the meeting,” the US president told reporters.
“We’re going to have a friendly meeting – very good.”
Image: Donald Trump and Keir Starmer will meet ‘very soon’, the president indicated. Pic: Reuters
He added: “We have a lot of good things going on. But he asked to come and see me and I just accepted his asking.”
The date for their meeting is unknown. When pressed, Mr Trump said it will happen “very soon”.
“I think he wants to come next week… or the week after,” he added.
When asked by a reporter what they will discuss, Mr Trump said: “I don’t know. It was his request, not mine.”
“I met him twice already, we get along very well, he’s a very nice guy,” the president said of Sir Keir.
Image: Sir Keir Starmer meets with the US Special Envoy to the UK, Mark Burnett and others. Pic: Instagram/USA in UK
The call between the president and prime minister is understood to have happened on Thursday during Sir Keir’s meeting with Mark Burnett, Washington’s special envoy to the UK.
The prime minister and Mr Burnett discussed the UK-US ‘special relationship’, and potential “further collaboration” on trade, technology, and culture.
An Instagram story for the US Embassy in London said that, during the dinner, President Trump called Mr Burnett, who “passed the phone to the PM”.
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A Downing Street spokeswoman said: “The prime minister was pleased to host President Trump’s special envoy to the United Kingdom, Mark Burnett, at Downing Street last night, during which he took a call from President Trump and discussed his forthcoming visit to the US.”
She added: “Mr Burnett and the prime minister agreed on the unique and special nature of the UK-US relationship, the strength of our alliance, and the warmth of the connection between the two countries.”
Sir Keir’s upcoming trip comes as the United Kingdom faces the potential threat of trade tariffs set by the US.
Mr Trump announced plans to impose “reciprocal tariffs”on all countries that impose extra costs on goods from the US, including countries which charge VAT on goods, like the UK.
The US president has promised to target countries which charge tax on US imports by matching them with a reciprocal tariff.
Donald Trump has ordered his team to start calculating duties by early April – increasing fears of a global trade war that could also accelerate US inflation.
“On trade, I have decided for purposes of fairness, that I will charge a reciprocal tariff, meaning whatever countries charge the United States of America, we will charge them. No more, no less,” he posted on Truth Social.
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2:45
What is America’s trade position?
It is set to spark negotiations with dozens of countries aimed at lowering their tariffs and trade barriers. The US wants to shrink its goods trade deficit which topped $1.2trn (£954bn) last year.
A White House official said that countries with large US trade surpluses could be targeted first. The top five are China, Mexico, Vietnam, Ireland and Germany, according to the US Census Bureau.
Taken at face value Donald Trump’s embrace of reciprocal tariffs is a declaration of total trade war.
It would amount to perhaps the single biggest peacetime shock to global commerce.
In promising to levy import taxes on any nation that imposes tariffs or VAT on US exports, he is following through on a campaign promise.
The aim is to address a near trillion dollar trade deficit – the difference between the value of America’s exports and its imports – that he believes amounts to a tax on American jobs.
In response, he wants to deploy tariffs to simultaneously ease the US deficit and – in theory – price out imports in favour of domestic production.
His primary targets appear to be the major trading partners with whom the trading deficit is greatest.
It is a blow to the emerging view in Whitehall that Britain might wriggle through the chaos relatively unscathed.
UK government minister Pat McFadden told Sky News’ Politics Hub with Sophy Ridge that Britain will take a “wait and see” approach when it comes to the tariffs. He refused to say if the government would retaliate.
The UK could be hit with tariffs as high as 24% if Mr Trump follows through on his threats to treat VAT as a tariff, according to Paul Ashworth, chief North America economist at Capital Economics.
Although some estimates are lower, he thinks Britain would be the fourth hardest hit, following India (29%), Brazil (28%) and the EU (25%).
This is based on VAT rates combined with existing tariffs, but the Trump administration also intends to take into account regulations, government subsidies, digital services taxation policies and exchange rate policies.
“Most people would consider VAT to be a non-discriminatory tax since it is also applied to domestically-produced goods making a level playing field,” said Mr Ashworth.
But the US still argues that VAT is a form of discriminatory tariff because America applies a much lower average sales tax at state level.
Image: Narendra Modi and Donald Trump at the White House. Pic: AP
On Thursday, Mr Trump also held a meeting with Indian Prime Minister Narendra Modi, agreeing to join forces on artificial intelligence, semiconductors and strategic minerals.
During a news conference afterwards, Mr Trump said India has been “very strong on tariffs” and “it’s very hard to sell into India”, adding: “They’re going to be purchasing a lot of our oil and gas.”
India’s tariff rates are the highest, according to the World Trade Organisation, with a simple average 17% rate for all products compared to 3.3% for the US.
Taken at face value Donald Trump’s embrace of reciprocal tariffs is a declaration of total trade war, that would amount to perhaps the single biggest peacetime shock to global commerce.
In promising to levy import taxes on any nation that imposes tariffs or VAT on US exports, he is following through on a campaign promise to address a near trillion dollar trade deficit – the difference between the value of America’s exports and its imports – that he believes amounts to a tax on American jobs.
In response, he wants to deploy tariffs as an “external revenue service”, simultaneously easing the US deficit and, so the theory goes, pricing out imports in favour of domestic production.
With a promise to reestablish industries, from chip production lost to Taiwan, and car and pharmaceutical manufacturing to Europe, he is promising a country-by-country tailored assault on the status quo.
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3:52
Donald Trump unveils new tariffs for trading partners
Risk to Britain remains uncertain
His primary targets appear to be the major trading partners with whom the trading deficit is greatest.
Mexico and Canada, the European Union (whose 10% tariff on US cars is a particular irritation), as well as the ‘BRICS’ nations – Brazil, Russia, India (which imposes 9% tariffs on US imports), China and South Africa.
What it means for the UK will not be certain until the details are revealed in April, but it is a blow to the emerging view in Whitehall that Britain might wriggle through the chaos relatively unscathed.
To begin with, the US runs a trade surplus with the UK – in a quirk of statistics, the UK thinks it has a surplus too – and Brexit has placed it outside the EU bloc with the ability at least in theory to be more agile.
The UK also imposes direct tariffs on very few US goods following a deal in 2021, brokered by then trade secretary Liz Truss, that removed tariffs on denim and motorcycles bound for Britain, and cashmere and Scotch whisky heading the other way.
But we do add VAT to imports, and Mr Trump’s threat to treat the sales tax as a tariff by another name will chill British exporters.
Image: Donald Trump accepts his tariffs will be inflationary for the US. Pic: AP
Tariffs set to raise prices in US
Analysts have estimated tariffs could add 21% to the cost of exports, amounting to a £24bn blow to national income.
Pharmaceuticals, cars, chemicals, scientific instruments and the aerospace industry – the main components of our £182bn US export trade – will all be potentially affected.
But the pain will certainly be shared.
Tariffs are paid by the importer, not the exporter, and even Mr Trump accepts they will be inflationary.
Rising prices on Main Street could yet be the biggest brake on the president’s tariff plan.