Report Claims that Apple is Not Paying OpenAI for the Inclusion of ChatGPT into iOS

By Media Infotainment Team | Thursday, 13 June 2024

Apple made a big announcement on Monday at the Worldwide Developers Conference (WWDC) on a new collaboration with OpenAI. The goal of this partnership is to include ChatGPT from OpenAI into Apple's iOS 18. Although neither company has disclosed many details regarding the agreement, a recent Bloomberg story provides some insight.

The article claims that Apple is not paying OpenAI for this collaboration. According to Mark Gurman of Bloomberg, at least initially, neither side should anticipate making a sizable profit from Apple and OpenAI's partnership. As a result, neither Apple nor OpenAI are receiving any financial remuneration from one another. Rather, the significance of this collaboration is found in ChatGPT's exposure and assimilation within Apple's ecosystem.

Apple thinks that including ChatGPT into iOS 18 will significantly increase awareness of OpenAI's technology. Through the integration of ChatGPT with new writing tools and Siri, Apple is giving OpenAI access to a vast user base. Direct financial payments are not thought to be as useful as this form of exposure. According to the Bloomberg-cited sources, who asked to remain anonymous since the transaction is private, Apple sees this advertising opportunity as just as significant as money, if not more so.

According to Bloomberg, Apple intends to get into revenue-sharing arrangements with artificial intelligence startups in the future. Under these agreements, Apple would get a portion of the money made by AI partners that charge for their services on Apple platforms. This approach fits with Apple's overarching goal of generating new income sources and incorporating cutting-edge AI capabilities into its products.

Although it will be an opt-in option, consumers will be able to integrate ChatGPT into iOS 18, iPadOS 18, and macOS Sequoia for free. By logging into their accounts, ChatGPT Plus subscribers will get access to extra services. Users of OpenAI's solo ChatGPT app for iOS may now utilize Apple's In-App Purchase mechanism to pay for ChatGPT Plus, with Apple receiving a 15–30% cut of each subscription.

More than short-term financial advantage, Apple's relationship with OpenAI is about strategic value and future possibilities. By adding ChatGPT to its operating systems, Apple improves its AI capabilities and raises the profile of OpenAI considerably, paving the way for future revenue-sharing schemes.

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