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Tesla (NASDAQ:TSLA) CEO Elon Musk is threatening to ban Apple (NASDAQ:AAPL) devices at Tesla and his other companies. Musk believes that the iPhone maker’s partnership with OpenAI will create IT security risks. Shares of AAPL stock fell 1.9% yesterday but are up more than 3% as of this writing.
Elon Musk also runs X (formerly Twitter), SpaceX and a number of other, smaller tech firms.
Apple’s AI Initiatives and Musk’s Concerns
Apple announced yesterday that it would incorporate OpenAI’s popular chatbot, ChatGPT, in its devices. Further, the company intends to add AI to many of its apps, including its Siri voice assistant. Apple is looking to use the technology to make its tools more personalized. However, the firm also says that it is prioritizing privacy with its AI offerings.
Meanwhile, Elon Musk warned in an X post that “Apple has no clue what’s actually going on once they hand your data over to OpenAI.”
“They’re selling you down the river,” the CEO added.
Musk also suggested that OpenAI would take users’ information from their devices and could use the data in nefarious ways.
“It’s patently absurd that Apple isn’t smart enough to make their own AI, yet is somehow capable of ensuring that OpenAI will protect your security & privacy,” wrote Musk.
If Apple integrates ChatGPT with its operating system, Musk said that he will respond by refusing to allow employees to use Apple devices at his companies. OpenAI President Greg Brockman reported that ChatGPT would indeed be incorporated into Apple’s operating systems later this year.
Musk’s History With ChatGPT
Elon Musk helped co-found OpenAI back in 2015. In March 2024, however, he sued the company for abandoning its “original mission” of being a non-profit entity focused on benefiting humanity. Musk launched competing AI startup xAI in July 2023.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Larry Ramer has conducted research and written articles on U.S. stocks for 15 years. He has been employed by The Fly and Israel’s largest business newspaper, Globes. Larry began writing columns for InvestorPlace in 2015. Among his highly successful, contrarian picks have been SMCI, INTC, and MGM. You can reach him on Stocktwits at @larryramer.
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