Apple‘s foray into the world of artificial intelligence (AI) might not be entirely free in the long run. According to a report by Bloomberg‘s well-regarded tech journalist Mark Gurman, while Apple’s upcoming suite of AI features, called Apple Intelligence, will be free to use initially, the company has plans to eventually introduce a paid tier with additional functionalities.

This tiered approach mirrors Apple’s strategy with iCloud+. The base level of iCloud storage comes free with your Apple device, but if you need more space for photos, videos, and backups, you have to pay a monthly subscription fee. Similarly, Gurman suggests that Apple Intelligence will offer a set of core features for free, such as enhanced Siri interactions and personalized app suggestions. But to unlock the “good stuff,” like more advanced capabilities, users might need to shell out extra cash through a service called “Apple Intelligence+”

This shift towards a subscription model for advanced AI features makes perfect sense for Apple from a business perspective. Hardware sales, particularly iPhones, have witnessed a slowdown in recent years. By monetizing its AI features, Apple can create a new revenue stream, lessening its dependence on hardware upgrades to drive its financial growth.

Furthermore, Gurman suggests that Apple might take a cut from any revenue generated when users access features offered by its partner AI companies. For instance, Apple is reportedly in talks with OpenAI, the creators of the popular AI tool ChatGPT, to integrate the service within Apple Intelligence. Similar partnerships with Google and Anthropic are also on the table, with Google’s AI potentially being unveiled alongside the fall launch of Apple Intelligence as part of the iOS 18, iPadOS 18, and macOS Sequoia updates.

It’s interesting to note that Apple reportedly nixed a potential partnership with Meta (formerly Facebook) due to concerns about user privacy. This aligns with Apple’s long-standing commitment to user data protection. Additionally, the report suggests that Apple is actively seeking partnerships to bring AI services to the Chinese market, where access to popular tools like ChatGPT is restricted.

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