Apple Integrates ChatGPT into iOS18 Without Payment to OpenAI

Apple announced during its Worldwide Developers Conference (WWDC) that it will bring ChatGPT to iOS18 as part of an agreement with OpenAI.

However, the details of the deal remain undisclosed. A recent report indicates that Apple will not pay OpenAI to integrate its chatbot into iOS.

Both Apple and OpenAI have kept the financial terms of their agreement confidential. Despite this, a Bloomberg report has revealed that Apple will not provide any monetary compensation to OpenAI for embedding ChatGPT in iOS. The integration will instead be a part of a strategic partnership between the two tech giants.

ChatGPT to enhance Siri

The collaboration between Apple and OpenAI includes embedding ChatGPT into Apple’s widely recognized virtual assistant, Siri. According to Mark Gurman, individuals familiar with the matter suggested that the initial arrangement does not involve financial transactions. Apple will not pay OpenAI for its services; similarly, OpenAI will not pay Apple for access to its system. ChatGPT will be available at no additional cost for Apple users, who can accept or decline the service.

Apple has been working on integrating ChatGPT into iOS18, iPadOS18, and macOS Sequoia. Users subscribed to ChatGPT Plus can access enhanced features by logging into their OpenAI accounts. This integration aims to improve Apple’s devices’ functionality and user experience.

OpenAI gains access to the iOS user base

The partnership is a strategic move for OpenAI, offering increased exposure to the extensive iOS user base. OpenAI views this agreement as an opportunity to expand its reach rather than immediate financial gain. The integration with iOS will provide OpenAI with significant visibility, leveraging Apple’s vast platform, which hosts hundreds of millions of users.

Apple has noted that the collaboration will boost the visibility of OpenAI’s technology. OpenAI’s standalone ChatGPT app is available on Apple’s App Store. Through in-app purchases for ChatGPT Plus, Apple receives up to 30% of the payments users make. This revenue-sharing model benefits both companies while offering advanced AI tools to Apple users.

During the keynote address at WWDC, Apple showcased AI features for its flagship devices, including the iPhone, iPad, and Mac. These features, developed in-house under the branding of Apple Intelligence, highlight the company’s commitment to advancing AI technology. The integration of ChatGPT into Siri aligns with Apple’s broader AI strategy.

Apple explores AI tools from various vendors

The agreement with OpenAI is part of Apple’s more significant push into AI. Sources indicate that Apple is exploring AI models from different vendors to generate revenue through revenue-sharing deals. This strategy allows Apple to earn a share of the revenue from AI partners who monetize chatbot interactions on the Apple platform.

Previous reports have mentioned that Apple was negotiating with Anthropic for chatbot integration, aiming to offer a variety of options to its users. Additionally, Apple is discussing integrating the Gemini Chatbot as an alternative option with other AI developers, including Google. An agreement with Google is expected later this year. Apple is also considering partnerships with Chinese companies like Alibaba and Baidu to cater to the Chinese market, where its market share has declined.

Gurman noted that the increasing popularity of AI tools might impact Apple’s revenue from its Google search integration deal. As users may prefer chatbots and other AI tools over traditional search engines, Apple is exploring new ways to maintain its revenue stream. This proactive approach reflects Apple’s effort to stay ahead in the rapidly evolving AI landscape.

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