Apple Renews Talks With OpenAI for iPhone Generative AI Features

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Apple Inc. has renewed discussions with OpenAI about using the startup's technology to power some new features coming to the iPhone later this year, according to people familiar with the matter. The two companies have begun discussing the terms of a potential deal and how OpenAI features would be integrated into Apple's iOS 18, the next iPhone operating system, said the people, who asked not be identified because the deliberations are private.

The measure supposes a reopening of the dialogue between the companies. Apple had spoken with OpenAI about a deal earlier this year, though work between the two sides had been minimal since then. Apple also remains in talks with Alphabet Inc's Google. regarding the licensing of this company's Gemini chatbot.

Apple has not made a final decision on which partners it will use, and there is no guarantee that an agreement will be reached. The company may eventually reach a deal with both OpenAI and Google, or choose another vendor entirely. Representatives for Apple, OpenAI and Google declined to comment.

The upcoming iPhone operating system will include several new features based on Apple's big internal language model (AI software that can generate human-sounding text), but the company has also been looking for partners to push a feature similar to a chatbot similar to OpenAI's ChatGPT. Bloomberg first reported in March about the discussions, which have also included AI startup Anthropic.

The latest development comes about a month and a half before Apple's Worldwide Developers Conference, where it is poised to unveil new AI software and services. The company plans to tout its features as more seamlessly integrated into its devices than rival AI offerings, with better privacy protections.

Last year, Cook said he personally uses OpenAI's ChatGPT, but noted there were “a number of issues that need to be worked out.” He promised that new AI features would come to Apple's platforms “very thoughtfully.”

Relying on partners would help accelerate Apple's push into chatbots and avoid some risks. By outsourcing generative AI functions to another company, Cook can reduce liability for its platform.

© 2024 Bloomberg LP


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