Apple not paying OpenAI to use ChatGPT in iOS 18: report

Chance Miller | Jun 12 2024 - 5:47 pm PT

At WWDC on Monday, Apple announced its highly-anticipated partnership with OpenAI to bring ChatGPT to iOS 18. While Apple and OpenAI have been silent on the details of the agreement, a new report from Bloomberg gives us a glimpse behind the scenes. According to the report, Apple isn’t paying OpenAI as part of this agreement.

The details of Apple’s deal with OpenAI

Mark Gurman explains that the partnership between Apple and OpenAI “isn’t expected to generate meaningful revenue for either party – at least at the outset.” As such, Apple isn’t paying OpenAI, nor is OpenAI paying Apple.

In fact, Apple reportedly believes that the exposure the iOS 18 integration is giving OpenAI is “of equal or greater value” than cash:

The arrangement includes weaving ChatGPT, a digital assistant that responds in plain terms to information requests, into Apple’s Siri and new writing tools. Apple isn’t paying OpenAI as part of the partnership, said the people, who asked not to be identified because the deal terms are private. Instead, Apple believes pushing OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments, these people said.

Looking to the future, Bloomberg says Apple’s goal is to ink revenue-sharing deals with AI companies. In an arrangement like this, Apple would get a “a cut from AI partners that monetize results in chatbots on Apple platforms.”

ChatGPT integration in iOS 18, iPadOS 18, and macOS Sequoia will be available at no cost for users who choose to opt-in. ChatGPT Plus subscribers will be able to sign in to their accounts to unlock additional features. Currently, OpenAI’s standalone ChatGPT app for iOS supports paying for ChatGPT Plus through Apple’s In-App Purchase system, earning Apple a 15-30% cut of those subscriptions.

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