Apple Reportedly Not Giving A Penny To OpenAI For Integration Of ChatGPT Into iOS 18, Here's Why

According to reports, Apple at the moment is not paying anything to OpenAI for the integration of ChatGPT into iOS 18.

Apple reportedly aims to establish revenue-sharing agreements with AI companies in the future.

Source : Unsplash/@Solen Feyissa

Apple at the Worldwide Developers Conference (WWDC) revealed about integrating OpenAI's ChatGPT into iOS 18. This was huge news but the specifics of it were initially unclear. However now, a report from Bloomberg has revealed some information about the partnership. As per the report, Apple is not paying OpenAI a single penny for this collaboration at this moment. Bloomberg explained how the partnership is not expected to bring in any significant revenue for either of the companies in the beginning. This is why, neither Apple nor OpenAI will exchange any money for the integration.

One might wonder if there is no revenue then what's the point of this partnership? The real deal of this lies in the exposure and integration of ChatGPT into Apple's vast ecosystem. The iPhone maker believes that integrating ChatGPT into iOS 18 will give OpenAI’s technology a big visibility boost. On the other hand, by integrating ChatGPT into Siri and other new writing tools, hundreds of millions of Apple users will benefit from this which might draw in more users leading to an increase in the market share.

Bloomberg cited sources close to the matter as saying that such exposure is seen as potentially more valuable than direct financial compensation and Apple also views this promotional opportunity as equally, if not more, valuable than cash.

Apple & OpenAI Future Plans

Apple reportedly aims to establish revenue-sharing agreements with AI companies in the future. This in simpler words means that Apple would receive a share of the revenue which will minted by AI partners who monetise their services on the platform provided by the iPhone maker. This aligns with the broader vision of Apple which is to integrate advanced AI capabilities into its devices without losing the focus of creating new revenue streams.

As for Apple users wondering whether they will have to pay for the integration of ChatGPT into iOS 18, iPadOS 18, and macOS Sequoia or not, well yeah but only if they want to. The integration is free primarily but, this is also an option to pay for the premium version of ChatGPT if users wish to have that. The ones who choose to subscribe to ChatGPT Plus will be allowed to access additional premium features by logging into their accounts.

At the moment, the ChatGPT app for iOS lets users pay for ChatGPT Plus via the In-App Purchase system of Apple. This leaves Apple with a 15-30 per cent share of those subscriptions.

To sum things up in simpler words, this partnership between Apple and OpenAI sets the stage for potential revenue-sharing models later in the future.