Apple’s Deal with OpenAI Is All About Exposure

Apple has integrated OpenAI’s ChatGPT into its devices, but instead of a traditional monetary payment, Apple is leveraging the distribution of OpenAI’s technology across its vast user base as a form of compensation. This integration was announced at Apple’s annual developer conference, WWDC24, and includes the addition of ChatGPT to Apple’s operating systems such as iOS 18, iPadOS 18, and macOS Sequoia.

The integration allows users to write documents and generate images using ChatGPT, and it’s also incorporated into Siri, enhancing the AI assistant’s responses. Apple believes that the exposure of OpenAI’s brand and technology to hundreds of millions of Apple device users is of greater value than any monetary payment.

While the ChatGPT-related features on Apple devices are available for free, users have the option to access ChatGPT’s paid features if they subscribe to a paid plan. This could potentially generate revenue for both OpenAI and Apple, as Apple could earn a commission if users subscribe to a paid plan via the ChatGPT app.

As of now, Apple has not received any money from OpenAI, but there are plans to establish a revenue-sharing system in the future. This system would allow Apple to receive a portion of the revenue if an AI company earns revenue from the AI responses on an Apple device. This innovative approach to payment showcases a new way tech companies can collaborate and benefit mutually from shared technology.

The deal to integrate ChatGPT into iOS is specifically because Apple’s own Siri is not yet up to scratch. That’s despite many recent reports such as one saying that Siri will see a massive AI upgrade via Apple’s own Ajax LLM. It reportedly won’t be mandatory. Users will have to opt in to using the service, rather than opt out.

Read more: appleinsider.com, Bloomberg