👀 Apple To Get OpenAI Board Observer Seat

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Hey Waivly Crew! 🌊 In today’s edition, Apple’s Phil Schiller joins OpenAI as a board observer, gaining insight without voting rights. Meanwhile, Tesla’s Q2 report shows a mix of lower production but higher deliveries.

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Here’s what’s on the horizon today:

• Netflix starts to phase out its cheapest ad-free plan

• Tesla's quarterly deliveries fall less than expected

• Apple poised to get OpenAI board observer role

• Figma temporarily disables its AI design feature

Let’s dive in!

STORIES MAKING A SPLASH

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Tesla's quarterly deliveries fall less than expected

Tesla's second-quarter report shows it produced 410,831 and delivered 443,956 EVs, with production down by over 20,000 units from Q1 but deliveries up nearly 15 percent. Despite this increase, deliveries were 4.8 percent lower than Q2 2023. Tesla also achieved a record with 9.4 GWh of energy storage products deployed.

In Q1 2024, Tesla saw its first year-over-year sales drop since 2020, attributing this to the production ramp-up of the updated Model 3, factory shutdowns due to the Red Sea conflict, and an arson attack at Gigafactory Berlin by the "Volcano Group," which caused a week-long closure.

On April 1, Tesla raised the price of every Model Y in the US by $1,000, with potential impacts on Q2 financial results to be revealed on July 23. CEO Elon Musk also announced a lower-cost EV for the second half of 2025, which may affect this year's sales growth.

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Netflix starts to phase out its cheapest ad-free plan

Netflix is moving forward with its plan to phase out the cheapest ad-free subscription tier for existing users. According to reports on Reddit, some basic plan subscribers are being prompted to switch to a new plan to continue their Netflix subscription by July 13th.

Affected users, mainly in Canada and the UK, are being offered alternatives: a $6.99 ad-supported tier, a $15.49 ad-free tier, or a $22.99 ad-free 4K premium plan. This change aligns with Netflix's announcement earlier this year to discontinue the basic tier for existing subscribers in these regions, with other countries possibly following.

Last year, Netflix stopped offering the basic plan to new customers in the US, Canada, and the UK. The streaming giant aims to transition existing subscribers towards its ad-supported plans, which have seen significant uptake, surpassing 40 million users as of May.

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TECH SPECIAL

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Apple poised to get OpenAI board observer role

Apple Fellow and App Store chief Phil Schiller will assume a board observer role at OpenAI, per Bloomberg. This position allows him to participate in board meetings without voting rights or control, aligning with Apple's integration of ChatGPT into iOS 18, iPadOS 18, and macOS Sequoia.

OpenAI has granted similar observer roles to Microsoft, ensuring parity in influence alongside Schiller. Bloomberg notes potential tensions in future meetings regarding OpenAI's partnerships with Microsoft, although Microsoft can request Schiller's exclusion from these discussions if necessary.

Schiller has yet to attend any OpenAI board meetings and is expected to do so later this year. The collaboration between Apple and OpenAI involves enhancing Siri's capabilities by leveraging ChatGPT, with no financial transactions currently involved between the two parties.

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Figma temporarily disables its AI design feature

Figma CEO Dylan Field announced the temporary disabling of the "Make Design" AI feature after it was found to replicate Apple’s Weather app designs. Andy Allen, founder of NotBoring Software, highlighted the issue, suggesting Figma's tool was heavily trained on existing apps, a claim Field denies.

The Make Design feature generates UI layouts from text prompts, aiming to help developers quickly draft and explore design ideas. Introduced at Figma’s Config conference, the company clarified it wasn’t trained on Figma content, community files, or app designs. Field emphasized that accusations of data training were false.

However, the hasty launch of new AI features seems to have bypassed thorough quality assurance. Some designers fear AI tools like Make Design could threaten jobs, while others believe AI will reduce repetitive tasks and foster more creative work.

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THE WAVES

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Discover more Waves in the Waivly Community. Click here to get onboard and join the community! 🌊

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