Apple FOUND a new partnership with ChatGPT-maker OpenAI at its WWDC event earlier this week bringing ChatGPT to iPhone, iPad and Mac devices. Now, new details have emerged about the financial aspects of the deal — and it appears that Apple isn't paying OpenAI to use its technology.
Apple announced that new, free AI capabilities were on the way with iOS 18. One standout feature is that Siri can send questions it can't directly answer to ChatGPT, an AI chatbot that answers questions in the written text.
Citing inside sources on Wednesday, Bloomberg reports that OpenAI will not be paid directly by providing ChatGPT to Apple users.
OpenAI will instead take advantage of Apple's extensive customer base using its technology; some may convert to paying customers. Apple has over two billion asset devices and is said to consider visibility in them to be of equal or greater value than any payment.
However, there is a cost to running AI. OpenAI must pay Microsoft to use its cloud computing system to run ChatGPT. The more ChatGPT users, the higher the bill.
ChatGPT currently draws one evaluated 180 million users per month.
OpenAI CEO Sam Altman, left, and Apple senior vice president of services Eddy Cue, right, during Apple's Worldwide Developers Conference on Monday, June 10, 2024. Photo: David Paul Morris/Bloomberg via Getty Images
Apple indicated at WWDC that it does not have an exclusive partnership with OpenAI; Apple's senior vice president of software engineering Craig Federighi said at the event that other AI models will come to Apple devices in the future.
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Although OpenAI may get more exposure from the deal, adding ChatGPT to Apple products could boost iPhone sales, Apple the biggest income generator.
Apple's AI software update is free, but it will be only be available on two iPhone models so far: iPhone 15 Pro and 15 Pro Max.
Apple's new iPhone expected this fall could prompt its existing customers who use older models to upgrade.
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