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AIAppleiOSiPhoneOpenAI

Here’s why Apple isn’t paying OpenAI for the tech

In an AI-first, Apple landed ChatGPT without opening its wallet by offering unrivaled promotion to OpenAI in this mutually-beneficial agreement.

By
Shubham Sawarkar
Shubham Sawarkar's avatar
ByShubham Sawarkar
Editor-in-Chief
I’m a tech enthusiast who loves exploring gadgets, trends, and innovations. With certifications in CISCO Routing & Switching and Windows Server Administration, I bring a sharp...
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Jun 13, 2024, 11:36 AM EDT
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A slide from a presentation titled "ChatGPT" at Apple's WWDC 2024 event. The slide may contain logo for OpenAI.
Image: Apple
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Apple‘s big announcement at WWDC this week, the inclusion of OpenAI’s ChatGPT in iOS 18, comes with a surprising wrinkle: according to a new report from Bloomberg‘s Mark Gurman, Apple isn’t paying OpenAI a dime for this integration.

Traditionally, these kinds of partnerships involve some form of financial exchange. But Gurman reports that this deal is different. Apparently, both Apple and OpenAI believe the benefits outweigh any upfront monetary transaction.

For Apple, the value lies in exposure. By integrating ChatGPT into Siri and its new writing tools, Apple is essentially placing OpenAI’s technology in front of hundreds of millions of users. This kind of brand awareness for a cutting-edge AI platform is seen by Apple as “of equal or greater value” than a simple cash payment.

However, Gurman suggests Apple might be playing a longer game here. The report mentions Apple’s goal of establishing revenue-sharing deals with AI companies in the future. These deals would see Apple taking a cut from any profits generated through AI features on its platforms.

Related /

  • What is Apple Intelligence?

While the base functionality of ChatGPT in iOS 18 will be free, there’s a premium tier called “ChatGPT Plus” that offers additional features. Notably, OpenAI’s existing standalone ChatGPT app for iOS already utilizes Apple’s In-App Purchase system for subscriptions, meaning Apple already gets a 15-30% cut from those transactions.


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Topic:Apple IntelligenceMark Gurman

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