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Apple-OpenAI partnership: They are not paying each other for ChatGPT integration into iOS

Jun 13, 2024 | News | 0 comments

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Apple and OpenAI recently announced their partnership to integrate ChatGPT into iOS 18. However, this is a non-monetary agreement between Apple and OpenAI.

On Monday, tech giant Apple made a big announcement at the Worldwide Developers Conference (WWDC) about partnering with OpenAI to incorporate ChatGPT into the company’s future iOS 18. Although there has been a lot of talk about this news, the agreement’s details needed to be clarified. A recent Bloomberg article clarified the facts of this intriguing partnership.

The news of Apple and OpenAI’s partnership has created a lot of buzz; even one of the world’s wealthiest men, Elon Musk, used his official X handle to express his opinion.

Elon Musk wrote concerns about Apple’s integration with OpenAI’s technology, citing security risks. He said, “If Apple integrates OpenAI at the OS level, then Apple devices will be banned at my company. That is an unacceptable security violation.”

Later on, social media was swamped with this news.

Update on the Matter

According to Bloomberg, Apple is not paying OpenAI for this partnership. A renowned tech journalist at Bloomberg, Mark Gurman, clarified that neither business anticipates considerable money from the partnership—at least not immediately. Instead, no payment will be exchanged for the collaboration between Apple and OpenAI. The actual value lies in the exposure and integration of ChatGPT into Apple’s vast ecosystem.

Apple believes that,

Apple expects that integrating ChatGPT into iOS 18 will significantly increase the popularity of OpenAI’s technology. By introducing ChatGPT with Siri and other AI tools, Apple has provided OpenAI with a huge user base. Sources close to the matter, who requested anonymity, indicated to Bloomberg that Apple views this promotional opportunity as equally, if not more, valuable than cash.

As per Bloomberg, Apple intends to enter into revenue-sharing contracts with artificial intelligence startups in the future. This would mean Apple would receive a share of the revenue generated by AI partners monetising their services on Apple platforms.

This approach fits Apple’s goal of generating new revenue sources and incorporating cutting-edge AI capabilities into its products and devices.

For Apple Users

Users can freely integrate ChatGPT with iOS 18, iPadOS 18, and macOS Sequoia. ChatGPT Plus subscribers will get access to extra features by signing into their accounts. Users of OpenAI’s solo ChatGPT app for iOS can currently use Apple’s In-App Purchase mechanism to pay for ChatGPT Plus, with Apple receiving a 15–30% cut of each subscription.

In conclusion, even if Apple deals with a non-financial partnership with OpenAI, through the integration of ChatGPT into its operating systems, Apple enhances its AI capabilities and provides OpenAI with significant increases in visibility.

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Written by Riteshu Sen Jaiswar

Chief Of Media at BIZBoost || Public Speaker || Web 3 Junkie || Passionate Writer || Gyaan Seeker

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