Apple announced its partnership with OpenAI, which will integrate the latter's artificial intelligence (AI) chatbot ChatGPT into iPhone, iPad and Mac devices, at the Worldwide Developers Conference (WWDC) 2024 keynote session on 10 of June A new report now highlights that Apple is not giving the AI company any monetary advantage for this deal, and neither is OpenAI paying a fee to the iPhone maker. However, it is reported that the deal still leaves room for significant monetary gains for both parties.
The Apple-OpenAI agreement does not involve a monetary transaction
Bloomberg's Mark Gurman reports that the Apple-OpenAI partnership “is not expected to generate significant revenue for either party, at least initially.” Citing people briefed on the matter, the report says Apple believes the exposure OpenAI's brand and technology will get from reaching “hundreds of millions” of Apple users will offset the value of a monetary payment.
That doesn't mean OpenAI is paying the Cupertino tech giant. Unlike the Google-Apple deal in which the former had paid $15 billion (roughly $1,25,319 million) to remain the default search engine on iPhones, iPads, and Macs in 2021, this deal won't make a profit either direct cash for Apple. Instead, the report claims that Apple aims to entice more people to buy their devices (or upgrade, if they have an old device) with ChatGPT's AI offerings.
Nor does Apple intend to stop at integrating ChatGPT into its operating systems, according to the report. The company is said to be in talks with Google to bring the Gemini chatbot as an additional option. This was also hinted at by Apple's senior vice president of software engineering, Craig Federighi, in a post-WWDC keynote discussion.
In addition, Gurman claims that the iPhone maker has also held talks with Anthropic, the maker of the Claude AI chatbot, as another potential partner. The company's AI strategy is believed to offer multiple AI services to users so they can choose what they prefer.
Notably, Apple is also powering multiple AI functions into its devices through an internal AI model that will process information both on-device and through the recently announced Private Cloud Compute servers.
