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Apple is reportedly not paying OpenAI for ChatGPT integration into iOS
14 Jun, 2024 / 09:25 am / Apple

Source: http://www.mashable.com

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Mashable: At the Worldwide Developers Conference (WWDC) on Monday, Apple announced an exciting partnership with OpenAI to incorporate ChatGPT into Apple's upcoming iOS 18. While this news has sparked considerable interest, the specifics of the agreement were initially unclear.

NEW: Apple and OpenAI have been silent on the financial terms of their ChatGPT deal. But here are the details: Apple and OpenAI aren’t paying each other and instead there’s money to be made later on revenue sharing deals. More here: https://t.co/MGTdWeJsyG — Mark Gurman (@markgurman) June 13, 2024

A recent Bloomberg report has provided more insight into the intricacies of this intriguing collaboration. According to the report, Apple will not be making any payments to OpenAI for this integration.

Tech journalist Mark Gurman from Bloomberg noted that this partnership is not anticipated to yield significant revenue for either party, at least initially. Instead, there will be no monetary exchange between Apple and OpenAI for the integration. The true value of this collaboration lies in the exposure and incorporation of ChatGPT into Apple's extensive ecosystem.

Apple is confident that the integration of ChatGPT into iOS 18 will significantly enhance the visibility of OpenAI's technology. Through the incorporation of ChatGPT into Siri and other upcoming writing tools, Apple is granting OpenAI access to a vast platform with hundreds of millions of users. This level of exposure is considered to be potentially more beneficial than monetary rewards.

According to undisclosed sources cited by Bloomberg, Apple regards this promotional opportunity as equally, if not more, valuable than financial compensation.

In the future, according to Bloomberg, Apple is considering forming revenue-sharing partnerships with AI firms. This would involve Apple receiving a portion of the earnings generated by AI collaborators who profit from their services on Apple's platforms.

Such a tactic is in line with Apple's overarching goal of incorporating cutting-edge AI features into its products and generating additional sources of income.

Users will have the option to integrate ChatGPT into iOS 18, iPadOS 18, and macOS Sequoia without any cost. However, those who choose to subscribe to ChatGPT Plus will be able to enjoy extra functionalities by simply logging into their accounts.

SIRI TO INTEGRATE WITH CHATGPT IN iOS 18

Apple announced that Siri will soon tap into OpenAI’s ChatGPT, allowing users to access external models for enhanced responses.

Siri will ask if you want to share your question with ChatGPT, then return suggestions from the chatbot.… https://t.co/pKoYdaXrWy pic.twitter.com/Ew0MqNp5po — Mario Nawfal (@MarioNawfal) June 10, 2024

Presently, users can make payments for ChatGPT Plus via Apple's In-App Purchase system on the standalone ChatGPT app for iOS, resulting in Apple receiving a 15-30 percent share of those subscriptions.