Apple reportedly compensates OpenAI for use of ChatGPT by ‘rendering’ on hundreds of millions of devices – Apple

During the WWDC 2024 conference that ended a few days ago, Apple focused on its new strategy around artificial intelligence in order to compete with major players in the market, such as Microsoft. But apart from the widespread integration of AI technologies into all its devices, Apple also announced a new partnership with OpenAIin order to show ChatGPT on iPhones.

However, the tech giant did not want to announce more information regarding this new partnership with the company that created ChatGPT. It is still unclear, for example, what exactly each company stands to gain from this collaboration. However, according to his report BloombergThis partnership has some special features.

According to sources with direct insight into the terms of the deal, OpenAI’s ChatGPT will be deeply integrated into Siri, providing a radical overhaul of its capabilities. The tool will also be leveraged to support the new set of AI functions. While one would expect that such an agreement would cost Apple a hefty sum, that does not appear to be the case.

Apple, from the data so far, is reportedly offering OpenAI something much better than money: promoting the company and its products on hundreds of millions of the tech giant’s devices. At the same time, Apple could benefit more from this new partnership. Currently, Apple has reclaimed the company crown with the highest stock market valuation from Microsoft, just days after announcing its strategy for its artificial intelligence arm.

First, the new AI features coming to iPhones with iOS 18 will only be available on iPhone Pro 15 or later devices. This means that users with older devices will need to upgrade to access these features, a move that could help overcome declining international iPhone sales, especially in the Chinese market.

However, it is still unclear whether OpenAI will demand more classic payment methods in order to take full advantage of its agreement with Apple. It could, for example, bundle some of the most advanced AI features with the ChatGPT Plus subscription service, which currently costs $20.

It is also interesting that OpenAI introduced ChatGPT exclusively for macOS, bypassing Windows, despite the fact that Microsoft has invested several billion dollars in the company. The creator of ChatGPT explained that it prioritized where its users were located, which could be interpreted as appreciation because its core customer base uses Macs rather than Windows machines.