Why Apple isn't paying OpenAI for ChatGPT in iOS 18
Apple recently announced a collaboration with OpenAI to incorporate the AI chatbot, ChatGPT, into its iPhone, iPad, and Mac devices. However, a report by Bloomberg's Mark Gurman reveals that this partnership does not involve any financial transactions between the two tech giants. The deal, announced at the Worldwide Developers Conference (WWDC) 2024, is not expected to yield significant revenue for either party initially. Instead, Apple is banking on the exposure OpenAI will gain from reaching millions of Apple users.
Apple's strategy to attract more users with AI features
Unlike the 2021 Google-Apple deal, where Google reportedly paid $15 billion to remain the default search engine on Apple devices, this partnership does not involve direct financial benefits for either company. Instead, Apple plans to attract more users to its devices by offering AI features powered by ChatGPT. The company is also considering integrating other chatbots like Gemini and Claude into its systems, as hinted by Craig Federighi, Apple's Senior Vice President of Software Engineering.
Apple's AI strategy includes in-house model and potential partnerships
In addition to integrating ChatGPT into its operating systems, Apple is reportedly considering partnerships with other AI chatbot makers like Gemini and Claude. The company's AI strategy involves offering multiple AI services to users, giving them the freedom to choose. Apple is also powering various AI features in its devices using an in-house AI model that processes information both on-device and via Private Cloud Compute servers.
ChatGPT integration and future revenue-sharing plans
In the upcoming iOS 18, iPadOS macOS 15, Siri can use ChatGPT for better responses to user queries. The chatbot is also integrated into Writing Tools, offering a 'Compose' feature that generates text and images. Users will have control over when to use ChatGPT and whether to share data with OpenAI. In the future, Apple plans to establish revenue-sharing agreements with AI companies to earn a portion of any income generated from chatbots monetized on its platforms.
