Apple is reportedly getting free ChatGPT access
Apple’s newly-announced partnership with OpenAI – which brings ChatGPT capabilities to iOS 18, iPadOS 18, and macOS Sequoia – comes without any direct money exchange.
According to a Bloomberg report by Mark Gurman, “Apple isn’t paying OpenAI as part of the partnership.”
Instead, the Cupertino-based company is leveraging its massive user base and device ecosystem as currency.
“Apple believes pushing OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments,” Gurman’s sources explained.
NEW: Apple and OpenAI have been silent on the financial terms of their ChatGPT deal. But here are the details: Apple and OpenAI aren’t paying each other and instead there’s money to be made later on revenue sharing deals. More here: https://t.co/MGTdWeJsyG— Mark Gurman (@markgurman) June 13, 2024
Gurman notes that OpenAI could find a silver lining by encouraging Apple users to subscribe to ChatGPT Plus, priced at $20 per month. If subscribers sign up through Apple devices, the iPhone maker will likely even claim a commission.
Apple’s AI strategy extends beyond OpenAI. The company is reportedly in talks to offer Google’s Gemini chatbot as an additional option later this year, signalling its intent to provide users with diverse AI experiences without necessarily having to make such major investments itself.
(Image Credit: Apple)
The long-term vision for Apple involves capturing a slice of the revenue generated from monetising chatbot results on its operating systems. This move anticipates a shift in user behaviour, with more people relying on AI assistants rather than traditional search engines like Google.
While Apple’s AI plans are ambitious, challenges remain. The report highlights that the company has yet to secure a deal with a local Chinese provider for chatbot features, though discussions with local firms like Baidu and Alibaba are underway. Initially, Apple Intelligence will be limited to US English, with expanded language support planned for the following year.
The Apple-OpenAI deal represents a novel approach to collaboration in the AI space, where brand exposure and technological integration are valued as much as, if not more than, direct financial compensation.
See also: Musk ends OpenAI lawsuit while slamming Apple’s ChatGPT plans
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