At Apple’s recent annual developer conference, the company announced a partnership with OpenAI to integrate its technology into iPhones and other devices. Interestingly, this collaboration reportedly involves no financial exchange. According to Bloomberg, Apple is not paying OpenAI, as it believes providing OpenAI’s technology to hundreds of millions of users is more valuable than monetary compensation.
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Apple will utilize OpenAI’s GPT-4 model to enhance AI tasks across iOS 18, iPadOS 18, and macOS Sequoia. For instance, Siri will leverage ChatGPT’s capabilities to create menu ideas, summarize articles, or find photos based on descriptions. Additionally, Apple’s writing tools will use ChatGPT to write, rewrite, and proofread text. Users will access these features without logging into or paying for ChatGPT, though those with a ChatGPT Plus account will enjoy extra perks.
Bloomberg highlights that OpenAI could profit from the deal by encouraging Apple users to subscribe to ChatGPT Plus for $20 a month. If users subscribe via an Apple device, Apple also earns a commission. Looking ahead, Apple aims to boost its AI revenue through revenue-sharing agreements with partners. It plans to take a share of the earnings from partners who monetize chatbot results on Apple’s operating systems, anticipating increased user reliance on AI over traditional search engines. This shift could reduce Apple’s revenue from its lucrative search deal with Google.
Apple has yet to disclose future AI partners but is reportedly in talks with Google to offer Gemini integration for iOS users, potentially as soon as later this year. Additionally, Apple is in discussions with Anthropic to provide its Claude AI chatbot as another option.
For those eager to experience these new features, they will be available next month to participants in Apple’s beta software program. Developers already have access, and the general public can expect the free watchOS 11 update this fall for Apple Watch Series 6 and newer models.
