Apple is paying OpenAI with exposure, not cash

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AppleInsiderAppleInsider
Posted:
in iOS edited June 2024

Apple and OpenAI are working together to bring optional ChatGPT functionality to Apple's ecosystem, but neither party is paying the other -- for now.

Siri and ChatGPT logos overlaid on Apple Park
Apple and OpenAI have a mutual partnership



It is well known that Google pays Apple billions for the premium seat as iPhone's default search engine. It seems that arrangement isn't necessary in either direction for the Apple and OpenAI partnership.

According to a report from Bloomberg, Apple isn't paying OpenAI nor is OpenAI paying Apple. The current arrangement relies on Apple providing exposure to OpenAI's ChatGPT to millions of users who want access to the tool -- a mutually beneficial arrangement.

While it appears that this is the arrangement for now, it could change into a kind of revenue share deal in the future. Apple is talking with other LLM providers like Google to give customers more options. Eventually, Apple will likely make a cut of any monetization options offered by third-party LLMs.

Apple introduced AI features during WWDC 2024, calling its in-house options "Apple Intelligence." The on-device models are made by Apple, and calls out to servers are done using an ultra-private and secure system called Apple Cloud Compute.

However, Apple is offering an alternative to Apple's server-side LLMs. The launch partner for this is OpenAI, so users can call ChatGPT on a per-request basis via Siri and other tools.

Every call to ChatGPT has to be authorized by the user, and OpenAI has said it isn't collecting any data about requests from Apple users. While an account isn't required and the feature is free, premium ChatGPT users can connect their accounts for more advanced options.

Apple Intelligence and the option ChatGPT integrations are launching in beta in the fall. Apple is expected to roll out access slowly during the initial launch.



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Comments

  • Reply 1 of 10
    Xedxed Posts: 3,113member
    Interesting. I assumed that OpenAI was paying Apple something to further legitimize ChatGPT and to continue to push it further as the de facto AI search option on the internet.
    Alex1Nwatto_cobra
     2Likes 0Dislikes 0Informatives
  • Reply 2 of 10
    eriamjheriamjh Posts: 1,822member
    No article about Musk losing his sh*t over this?
    williamlondonVictorMortimertmayAfarstarwatto_cobra
     4Likes 0Dislikes 1Informative
  • Reply 3 of 10
    VictorMortimervictormortimer Posts: 239

    Oblig. Oatmeal

     0Likes 0Dislikes 0Informatives
  • Reply 4 of 10
    danoxdanox Posts: 3,679member
    Oops Google and Microsoft thought they were getting paid.......
    edited June 2024
    watto_cobra
     1Like 0Dislikes 0Informatives
  • Reply 5 of 10
    Wesley Hilliardwesley hilliard Posts: 447member, administrator, moderator, editor
    eriamjh said:
    No article about Musk losing his sh*t over this?
    Yesterday's news:

    https://appleinsider.com/articles/24/06/10/elon-musks-latest-anti-apple-tirade-is-about-a-chatgpt-feature-that-doesnt-exist
    tmayAlex1Nwatto_cobra
     2Likes 0Dislikes 1Informative
  • Reply 6 of 10
    Max_truthmax_truth Posts: 7member
    danox said:
    Oops Google and Microsoft thought they were getting paid.......
    It will be an interesting point in the upcoming Apple monopoly trial. 
    williamlondonwatto_cobra
     1Like 0Dislikes 1Informative
  • Reply 7 of 10
    Afarstarafarstar Posts: 89member
    eriamjh said:
    No article about Musk losing his sh*t over this?
    Musk seems to think he is god of the world with many of his comments nowadays. Think he’s going slightly more nuts? 
    sphericwatto_cobra
     2Likes 0Dislikes 0Informatives
  • Reply 8 of 10
    foregoneconclusionforegoneconclusion Posts: 2,974member
    Might want to consider retiring the "put a logo inside Apple Park" approach for the article graphics. 
    appleinsideruserwatto_cobra
     2Likes 0Dislikes 0Informatives
  • Reply 9 of 10
    cpsrocpsro Posts: 3,269member
    eriamjh said:
    No article about Musk losing his sh*t over this?
    Musk didn't grok the situation at first.
    watto_cobra
     1Like 0Dislikes 0Informatives
  • Reply 10 of 10
    danoxdanox Posts: 3,679member
    Max_truth said:
    danox said:
    Oops Google and Microsoft thought they were getting paid.......
    It will be an interesting point in the upcoming Apple monopoly trial. 

    It will be more interesting to be a fly on the wall when the CEO'S of Microsoft and Google call Tim Cook about a deal.
    watto_cobra
     1Like 0Dislikes 0Informatives
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