OpenAI Gambles on Apple's No-Payment Deal for ChatGPT Access in iOS 18

By Thea Felicity

Jun 13, 2024 12:22 PM EDT

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Apple CEO Tim Cook (L), John Giannandrea (C), senior VP of machine learning and AI strategy and Craig Federighi (L), senior VP software engineering, speak during Apple's annual Worldwide Developers Conference (WDC) in Cupertino, California on June 10, 2024.
(Photo : NIC COURY/AFP via Getty Images)

Earlier this week, VCPost reported that Apple had struck a deal with OpenAI to integrate ChatGPT into its devices. However, the deal did not involve any financial compensation for OpenAI. 

Companies like Apple would typically incur substantial costs for accessing and utilizing server resources from providers like OpenAI.However, in this case, sources familiar with the matter revealed that Apple opted to forego direct payments. Instead, 9to5mac reported that Apple views the exposure and technological collaboration with OpenAI as invaluable assets that could potentially yield more significant long-term benefits than monetary compensation.

By integrating ChatGPT, Apple aims to enhance the capabilities of its virtual assistant Siri, particularly for tasks that require sophisticated AI processing beyond the capabilities of its on-device and Private Cloud Computing services.

READ MORE: OpenAI Welcomes New Top Executives, Announces Partnership With Apple

OpenAI's Gamble Into Apple Partnership

The partnership is not without risks and considerations. 

While Apple stands to benefit from expanded AI functionalities and heightened brand visibility associated with ChatGPT, OpenAI is banking on exposure to Apple's vast user base as a springboard for wider adoption and potential premium service upselling. 

However, details about potential usage limits for ChatGPT on Apple devices remain unclear, raising questions about the extent of user access and the impact on OpenAI's operational strategies.

Industry experts suggest that while Apple's strategy may appear risky, the potential rewards for enhanced user engagement, technological advancement, and competitive positioning in the AI industry could justify the unconventional approach. 

READ NEXT: Elon Musk Condemns Apple's OpenAI Agreement; Are His Concerns Valid?

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