Apple doesn’t pay OpenAI for ChatGPT integration

MetaversePlanet June 13, 2024Last Updated: November 12, 2024

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At its annual developer conference, Apple announced that it is integrating OpenAI’s ChatGPT into the iPhone, iPad, and Mac. However, Apple will not be paying for this integration with money.

One of Apple’s announcements at WWDC was that OpenAI’s ChatGPT chatbot, supported by Microsoft, will be integrated into iPhone, iPad, and Mac. Although both parties have confirmed their cooperation, they have remained silent on the financial details of the deal. According to a new report, this silence is due to the absence of any cash transactions.

Apple doesn’t pay OpenAI

Under normal circumstances, when a giant company and a rapidly rising company enter into a partnership, a certain amount of money typically changes hands. However, according to Bloomberg’s report, this is not the case for Apple and OpenAI; no money exchanged hands. Instead, Apple is reportedly offering “reputation” by putting OpenAI and its technology in front of hundreds of millions of people.

Reportedly, Apple gains the advantage of offering consumers an advanced chatbot thanks to ChatGPT, while OpenAI gains increased recognition. However, this raises questions. According to reports, OpenAI’s only benefit in the deal is recognition and access to a broader audience. Given OpenAI’s widespread recognition and the popularity of ChatGPT, this seems limited.

On the other hand, the agreement allows both OpenAI and Apple to generate revenue. Apple is using ChatGPT to power AI features in iOS 18, iPadOS 18, and macOS Sequoia. For example, Siri will use ChatGPT for requests that exceed its capabilities, with prior permission. Apple’s writing tools on these platforms will also have features such as summarization, text generation, and rewriting with different tones using ChatGPT. Users will not need to create a ChatGPT account but can enhance capabilities by switching to ChatGPT Plus, which costs $20 per month. Through OpenAI and its commission, Apple will be able to generate income.

Additionally, the deal incurs costs for OpenAI. OpenAI hosts its artificial intelligence on Microsoft’s Azure cloud systems and pays for each capacity. More users mean higher payments and increased computing capacity for OpenAI.

Apple is also in talks with other artificial intelligence companies and solutions. It is reported that in the future, the company may integrate other AI technologies through similar sharing agreements. Apple is reportedly in discussions with Anthropic and Google on this matter.