Business
Elon Musk blasts Apple's OpenAI deal over alleged privacy issues. Does he have a point?
When Apple holds its annual Worldwide Developers Conference, its software announcements typically elicit cheers and excitement from tech enthusiasts.
But there was one notable exception this year — Elon Musk.
The Tesla and SpaceX chief executive threatened to ban all Apple devices from his companies, alleging a new partnership between Apple and Microsoft-backed startup OpenAI could pose security risks. As part of its new operating system update, Apple said users who ask Siri a question could opt in for Siri to pull additional information from ChatGPT.
“Apple has no clue what’s actually going on once they hand your data over to OpenAI,” Musk wrote on X. “They’re selling you down the river.”
The partnership allows Siri to ask iPhone, Mac and iPad users if the digital assistant can surface answers from OpenAI’s ChatGPT to help address a question. The new feature, which will be available on certain Apple devices, is part of the company’s operating system update due later this year.
“If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my companies,” Musk wrote on X. “That is an unacceptable security violation.”
Representatives for Musk and Apple did not respond to a request for comment.
In a keynote presentation at its developers conference on Monday, Apple said ChatGPT would be free for iPhone, Mac and iPad users. Under the partnership, Apple device users would not need to set up a ChatGPT account to use it with Siri.
“Privacy protections are built in for users who access ChatGPT — their IP addresses are obscured, and OpenAI won’t store requests,” Apple said on its website. “ChatGPT’s data-use policies apply for users who choose to connect their account.”
Many of Apple’s AI models and features, which the company collectively calls “Apple Intelligence,” run on the device itself, but some inquiries will require information to be sent through the cloud. Apple said that data is not stored or made accessible to Apple and that independent experts can inspect the code that runs on the servers to verify this.
Apple Intelligence will be available for certain models of Apple devices, such as the iPhone 15 Pro and iPhone 15 Pro Max and iPad and Mac with M1 and later.
So does Musk have a point? Technology and security experts who spoke to The Times offered mixed opinions.
Some pushed back on Musk’s assertion that Apple’s OpenAI deal poses security risks, citing a lack of evidence.
“Like a lot of things that Elon Musk says, it’s not based upon any kind of technical reality now, it’s really just based upon his political beliefs,” said Alex Stamos, chief trust officer at Mountain View, Calif.-based cybersecurity company SentinelOne. “There’s no real factual basis for what he said.”
Stamos, who is also a computer science lecturer at Stanford University and a former chief security officer at Facebook, said he was impressed with Apple’s data protection efforts, adding, “They’re promising a level of transparency that nobody’s really ever provided.
“It’s hard to totally prove at this point, but what they’ve laid out is about the best you could do to provide this level of AI services running on people’s private data while protecting their privacy,” Stamos said.
“To do the things that people have become accustomed to from ChatGPT, you just can’t do that on phones yet,” Stamos added. “We’re years away from being able to run those kinds of models on something that fits in your pocket and doesn’t burn a hole in your jeans from the amount of power it burns.”
Musk has been critical of OpenAI. He sued the company in February for breach of contract and fiduciary duty, alleging it had shifted its focus from an agreement to develop artificial general intelligence “for the benefit of humanity, not for a for-profit company seeking to maximize shareholder profits.” On Tuesday, Musk, who was a co-founder of and investor in OpenAI, withdrew his lawsuit. Musk’s San Francisco company, xAI, is a competitor to OpenAI in the fast-growing field of artificial intelligence.
Musk has taken aim at Apple in the past, calling it a “Tesla graveyard,” because, according to him, Apple had hired people that Tesla had fired. “If you don’t make it at Tesla, you go work at Apple,” Musk said in an interview with German newspaper Handelsblatt in 2015. “I’m not kidding.”
Still, Rayid Ghani, a machine learning and public policy professor at Carnegie Mellon University, said that, at a high level, he thinks the concerns Musk raised about the OpenAI-Apple partnership should be raised.
While Apple said that OpenAI is not storing Siri requests, “I don’t think we should just take that at face value,” Ghani said. “I think we need to ask for evidence of that. How does Apple ensure that processes are there in place? What is the recourse if it doesn’t happen? Who’s liable, Apple or OpenAI, and how do we deal with issues?”
Some industry observers also have raised questions about the option for Apple users who have a ChatGPT account to link it with their iPhone, and what information is collected by OpenAI in that case.
“We have to be careful with that one — linking your account on your mobile phone is a big deal,” said Pam Dixon, executive director of the World Privacy Forum. “I personally would not link until there is a lot more clarity about what happens to the data.”
OpenAI pointed to a statement on its website that says, “Users can also choose to connect their ChatGPT account, which means their data preferences will apply under ChatGPT’s policies.” The company declined further comment.
Under OpenAI’s privacy policy, the company says it collects personal information that is included in the input, file uploads or feedback when account holders use its service. ChatGPT has a way for users to opt out of having their inquiries used to train AI models.
As the use of AI becomes more entwined with people’s lives, industry observers say that it will be crucial to provide transparency for customers and test the trustworthiness of the AI tools.
“We’re going to have to understand something about AI. It’s going to be a lot like plumbing. It’s going to be built into our devices and our lives everywhere,” Dixon said. “The AI is going to have to be trustworthy and we’re going to need to be able to test that trustworthiness.”
Night Archiving Supervisor Valerie Hood contributed to this report.
Business
A new delivery bot is coming to L.A., built stronger to survive in these streets
The rolling robots that deliver groceries and hot meals across Los Angeles are getting an upgrade.
Coco Robotics, a UCLA-born startup that’s deployed more than 1,000 bots across the country, unveiled its next-generation machines on Thursday.
The new robots are bigger, tougher and better equipped for autonomy than their predecessors. The company will use them to expand into new markets and increase its presence in Los Angeles, where it makes deliveries through a partnership with DoorDash.
Dubbed Coco 2, the next-gen bots have upgraded cameras and front-facing lidar, a laser-based sensor used in self-driving cars. They will use hardware built by Nvidia, the Santa Clara-based artificial intelligence chip giant.
Coco co-founder and chief executive Zach Rash said Coco 2 will be able to make deliveries even in conditions unsafe for human drivers. The robot is fully submersible in case of flooding and is compatible with special snow tires.
Zach Rash, co-founder and CEO of Coco, opens the top of the new Coco 2 (Next-Gen) at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
Early this month, a cute Coco was recorded struggling through flooded roads in L.A.
“She’s doing her best!” said the person recording the video. “She is doing her best, you guys.”
Instagram followers cheered the bot on, with one posting, “Go coco, go,” and others calling for someone to help the robot.
“We want it to have a lot more reliability in the most extreme conditions where it’s either unsafe or uncomfortable for human drivers to be on the road,” Rash said. “Those are the exact times where everyone wants to order.”
The company will ramp up mass production of Coco 2 this summer, Rash said, aiming to produce 1,000 bots each month.
The design is sleek and simple, with a pink-and-white ombré paint job, the company’s name printed in lowercase, and a keypad for loading and unloading the cargo area. The robots have four wheels and a bigger internal compartment for carrying food and goods .
Many of the bots will be used for expansion into new markets across Europe and Asia, but they will also hit the streets in Los Angeles and operate alongside the older Coco bots.
Coco has about 300 bots in Los Angeles already, serving customers from Santa Monica and Venice to Westwood, Mid-City, West Hollywood, Hollywood, Echo Park, Silver Lake, downtown, Koreatown and the USC area.
The new Coco 2 (Next-Gen) drives along the sidewalk at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
The company is in discussion with officials in Culver City, Long Beach and Pasadena about bringing autonomous delivery to those communities.
There’s also been demand for the bots in Studio City, Burbank and the San Fernando Valley, according to Rash.
“A lot of the markets that we go into have been telling us they can’t hire enough people to do the deliveries and to continue to grow at the pace that customers want,” Rash said. “There’s quite a lot of area in Los Angeles that we can still cover.”
The bots already operate in Chicago, Miami and Helsinki, Finland. Last month, they arrived in Jersey City, N.J.
Late last year, Coco announced a partnership with DashMart, DoorDash’s delivery-only online store. The partnership allows Coco bots to deliver fresh groceries, electronics and household essentials as well as hot prepared meals.
With the release of Coco 2, the company is eyeing faster deliveries using bike lanes and road shoulders as opposed to just sidewalks, in cities where it’s safe to do so. Coco 2 can adapt more quickly to new environments and physical obstacles, the company said.
Zach Rash, co-founder and CEO of Coco.
(Kayla Bartkowski/Los Angeles Times)
Coco 2 is designed to operate autonomously, but there will still be human oversight in case the robot runs into trouble, Rash said. Damaged sidewalks or unexpected construction can stop a bot in its tracks.
The need for human supervision has created a new field of jobs for Angelenos.
Though there have been reports of pedestrians bullying the robots by knocking them over or blocking their path, Rash said the community response has been overall positive. The bots are meant to inspire affection.
“One of the design principles on the color and the name and a lot of the branding was to feel warm and friendly to people,” Rash said.
Coco plans to add thousands of bots to its fleet this year. The delivery service got its start as a dorm room project in 2020, when Rash was a student at UCLA. He co-founded the company with fellow student Brad Squicciarini.
The Santa Monica-based company has completed more than 500,000 zero-emission deliveries and its bots have collectively traveled around 1 million miles.
Coco chooses neighborhoods to deploy its bots based on density, prioritizing areas with restaurants clustered together and short delivery distances as well as places where parking is difficult.
The robots can relieve congestion by taking cars and motorbikes off the roads. Rash said there is so much demand for delivery services that the company’s bots are not taking jobs from human drivers.
Instead, Coco can fill gaps in the delivery market while saving merchants money and improving the safety of city streets.
“This vehicle is inherently a lot safer for communities than a car,” Rash said. “We believe our vehicles can operate the highest quality of service and we can do it at the lowest price point.”
Business
Trump orders federal agencies to stop using Anthropic’s AI after clash with Pentagon
President Trump on Friday directed federal agencies to stop using technology from San Francisco artificial intelligence company Anthropic, escalating a high-profile clash between the AI startup and the Pentagon over safety.
In a Friday post on the social media site Truth Social, Trump described the company as “radical left” and “woke.”
“We don’t need it, we don’t want it, and will not do business with them again!” Trump said.
The president’s harsh words mark a major escalation in the ongoing battle between some in the Trump administration and several technology companies over the use of artificial intelligence in defense tech.
Anthropic has been sparring with the Pentagon, which had threatened to end its $200-million contract with the company on Friday if it didn’t loosen restrictions on its AI model so it could be used for more military purposes. Anthropic had been asking for more guarantees that its tech wouldn’t be used for surveillance of Americans or autonomous weapons.
The tussle could hobble Anthropic’s business with the government. The Trump administration said the company was added to a sweeping national security blacklist, ordering federal agencies to immediately discontinue use of its products and barring any government contractors from maintaining ties with it.
Defense Secretary Pete Hegseth, who met with Anthropic’s Chief Executive Dario Amodei this week, criticized the tech company after Trump’s Truth Social post.
“Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” he wrote Friday on social media site X.
Anthropic didn’t immediately respond to a request for comment.
Anthropic announced a two-year agreement with the Department of Defense in July to “prototype frontier AI capabilities that advance U.S. national security.”
The company has an AI chatbot called Claude, but it also built a custom AI system for U.S. national security customers.
On Thursday, Amodei signaled the company wouldn’t cave to the Department of Defense’s demands to loosen safety restrictions on its AI models.
The government has emphasized in negotiations that it wants to use Anthropic’s technology only for legal purposes, and the safeguards Anthropic wants are already covered by the law.
Still, Amodei was worried about Washington’s commitment.
“We have never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” he said in a blog post. “However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values.”
Tech workers have backed Anthropic’s stance.
Unions and worker groups representing 700,000 employees at Amazon, Google and Microsoft said this week in a joint statement that they’re urging their employers to reject these demands as well if they have additional contracts with the Pentagon.
“Our employers are already complicit in providing their technologies to power mass atrocities and war crimes; capitulating to the Pentagon’s intimidation will only further implicate our labor in violence and repression,” the statement said.
Anthropic’s standoff with the U.S. government could benefit its competitors, such as Elon Musk’s xAI or OpenAI.
Sam Altman, chief executive of OpenAI, the company behind ChatGPT and one of Anthropic’s biggest competitors, told CNBC in an interview that he trusts Anthropic.
“I think they really do care about safety, and I’ve been happy that they’ve been supporting our war fighters,” he said. “I’m not sure where this is going to go.”
Anthropic has distinguished itself from its rivals by touting its concern about AI safety.
The company, valued at roughly $380 billion, is legally required to balance making money with advancing the company’s public benefit of “responsible development and maintenance of advanced AI for the long-term benefit of humanity.”
Developers, businesses, government agencies and other organizations use Anthropic’s tools. Its chatbot can generate code, write text and perform other tasks. Anthropic also offers an AI assistant for consumers and makes money from paid subscriptions as well as contracts. Unlike OpenAI, which is testing ads in ChatGPT, Anthropic has pledged not to show ads in its chatbot Claude.
The company has roughly 2,000 employees and has revenue equivalent to about $14 billion a year.
Business
Video: The Web of Companies Owned by Elon Musk
new video loaded: The Web of Companies Owned by Elon Musk

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