At the Worldwide Developers Conference (WWDC) on Monday, Apple made an exciting announcement about teaming up with OpenAI to integrate ChatGPT into Apple’s upcoming iOS 18. This news has generated a lot of buzz, but the specifics of the deal were initially unclear. A recent report from Bloomberg has shed some light on the details of this intriguing partnership.
According to the Bloomberg report, Apple is not paying OpenAI for this collaboration. Mark Gurman, a well-known tech journalist at Bloomberg, explained that the partnership is not expected to bring in significant revenue for either company, at least in the beginning. Instead, neither Apple nor OpenAI will exchange any money for the integration. The true value lies in the exposure and integration of ChatGPT into Apple’s vast ecosystem.
Apple believes that integrating ChatGPT into iOS 18 will give OpenAI’s technology a huge visibility boost. By embedding ChatGPT into Siri and other new writing tools, Apple is providing OpenAI with a platform that reaches hundreds of millions of users. This kind of exposure is seen as potentially more valuable than direct financial compensation. Sources close to the matter, who requested anonymity, indicated to Bloomberg that Apple views this promotional opportunity as equally, if not more, valuable than cash.
Looking ahead, Bloomberg reports that Apple plans to establish revenue-sharing agreements with AI companies in the future. This would mean that Apple would receive a share of the revenue generated by AI partners who monetise their services on Apple platforms. This strategy aligns with Apple’s broader vision of integrating advanced AI capabilities into its devices while also creating new revenue streams.
For users, the integration of ChatGPT into iOS 18, iPadOS 18, and macOS Sequoia will be free but optional. Users who subscribe to ChatGPT Plus will be able to access additional features by logging into their accounts. Currently, OpenAI’s standalone ChatGPT app for iOS allows users to pay for ChatGPT Plus through Apple’s In-App Purchase system, which gives Apple a 15-30 per cent share of those subscriptions.
In summary, Apple’s partnership with OpenAI is about strategic value and future potential rather than immediate financial gain. By incorporating ChatGPT into its operating systems, Apple enhances its AI capabilities and gives OpenAI a significant boost in visibility. This sets the stage for potential revenue-sharing models down the line, highlighting a mutually beneficial relationship that could shape the future of AI integration in consumer technology.
Apple not paying OpenAI for ChatGPT integration into iOS
