July 14, 2024

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Apple appears to have convinced OpenAI to work for exposure

Apple appears to have convinced OpenAI to work for exposure

At Apple’s recently concluded annual developers conference, the company announced that it had teamed up with OpenAI to bring its technology to the iPhone and other devices. It’s easy to imagine a huge amount of money changing hands in a deal between a huge corporation and a fast-growing technology company. But according to new Bloomberg Report, no one paid anyone in that partnership. Apple reportedly isn’t paying OpenAI because it believes putting its technology in front of hundreds of millions of users is equal to or even better than any kind of cash payment.

Apple will use OpenAI’s GPT-4o model to power AI tasks on iOS 18, iPadOS 18, and macOS Sequoia. Siri, for example, would benefit from ChatGPT’s capabilities if users asked it to generate list ideas, summarize articles, or find images based on a description of what they contain. Apple Writing Tools can also use ChatGPT to write stories, as well as to rewrite and revise existing text. Users will be able to enjoy these features without having to log in or pay for ChatGPT, but they will get additional privileges if they pay for a Plus account.

like Bloomberg He points out that OpenAI could make money from the deal by getting Apple users to pay $20 a month for ChatGPT Plus. If those users sign up on an Apple device, the iPhone maker will also receive a commission. The news organization says that in the future, Apple intends to achieve more profits from artificial intelligence by entering into revenue-sharing agreements with its partners. It aims to capture a portion of what these partners stand to gain from monetizing results in chatbots on Apple’s operating systems, in particular, because it believes more and more users will turn to AI via search engines. This means it can make less money from its long-term (and lucrative) search deal with Google.

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Apple has yet to reveal its future AI partners, but it is reportedly in talks with Google to bring Gemini integration to iOS users later this year. It is also said to be talking with Anthropic to offer chatbot Claude AI as another option.