Apple Won’t Pay OpenAI for Using ChatGPT in iOS 18

Apple Won’t Pay OpenAI for Using ChatGPT in iOS 18

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At the WWDC conference last Monday, Apple announced its anticipated partnership with OpenAI to bring ChatGPT to iOS 18.

While both Apple and OpenAI have remained silent on the details of the agreement, a new report from Bloomberg provides some behind-the-scenes insights.

According to the report, Apple is not paying OpenAI as part of this agreement. Mark Gurman explains that the partnership between Apple and OpenAI is expected to generate little revenue for either party, at least initially.

As such, Apple will not be paying OpenAI, nor will OpenAI be paying Apple.

In fact, it is said that Apple believes the exposure provided by integrating iOS 18 with OpenAI is of equal or greater value than cash.

The arrangement involves integrating ChatGPT, a digital assistant that responds in clear phrases to information requests, into Apple’s Siri and new writing tools.

Apple Won’t Pay OpenAI for Using ChatGPT in iOS 18

People familiar with the deal, who asked not to be identified because the terms are private, said Apple is not paying OpenAI as part of the partnership. Instead, Apple believes that promoting OpenAI’s brand and technology across hundreds of millions of its devices holds value equal to or greater than cash payments, these people said.

Looking ahead, Bloomberg says Apple’s goal is to strike revenue-sharing agreements with AI companies. In such an arrangement, Apple would take a share from AI partners who monetize results in chatbots on Apple’s platforms.

The integration of ChatGPT into iOS 18, iPadOS 18, and macOS Sequoia will be available for free to users who opt-in. ChatGPT Plus subscribers will be able to log in to their accounts to unlock additional features.

Currently, OpenAI’s standalone ChatGPT app for iOS supports payments for ChatGPT Plus through Apple’s in-app purchase system, giving Apple a 15-30 per cent cut of those subscriptions.

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