Apple Not Paying OpenAI for ChatGPT on iOS 18, macOS Sequoia: Report
Apple announced its partnership with OpenAI, which will see the latter’s artificial intelligence (AI) chatbot ChatGPT integrated into iPhone, iPad, and Mac devices, during its Worldwide Developers Conference (WWDC) 2024 keynote session on June 10. A new report now highlights that Apple is not providing the AI company with any financial benefits in the deal, nor is OpenAI paying any compensation to the iPhone maker. However, the deal reportedly still opens up opportunities for both parties to make significant financial gains.
Apple-OpenAI deal does not involve a cash transaction
Bloomberg’s Mark Gurman reports that the Apple-OpenAI partnership “is not expected to generate meaningful revenue for either party — at least not initially.” The report, citing people with knowledge of the matter, said that Apple believes the exposure OpenAI’s brand and technology will gain from reaching “hundreds of millions” of Apple users will outweigh the value of a monetary payment.
This doesn’t mean that OpenAI is paying the Cupertino-based tech giant. Unlike the Google-Apple deal, in which the former reportedly paid $15 billion (approximately Rs 1,25,319 crore) to remain the default search engine on iPhone, iPad, and Mac in 2021, this deal won’t result in any direct financial benefits for Apple either. Instead, the report claims that Apple wants to entice more people to buy its devices (or upgrade, if they own an older device) with ChatGPT’s AI offerings.
Apple also has no plans to stop integrating ChatGPT into its operating systems, according to the report. The company is reportedly in talks with Google to integrate Gemini’s chatbot as an additional option. This was also hinted at by Apple’s Senior Vice President of Software Engineering Craig Federighi in a post-WWDC keynote discussion.
Furthermore, Gurman claims that the iPhone maker has also held talks with Anthropic, the maker of the Claude AI chatbot, as another potential partner. The company’s AI strategy would be to offer multiple AI services to users so they can choose the one they prefer.
Notably, Apple is also integrating multiple AI features into its devices through an internal AI model that processes information both on the device itself and via its recently announced Private Cloud Compute servers.
