Apple Reportedly Not Paying OpenAI to Use ChatGPT in iOS 18

[MacRumors]

Alongside its Apple Intelligence feature set, Apple on Monday announced a partnership with OpenAI that will allow Siri to access ChatGPT directly in iOS 18, iPadOS 18, and macOS Sequoia to provide better responses in relevant situations. But according to a new Bloomberg report, nobody is paying cash to anybody for the arrangement.

From Mark Gurman's report:

Apple isn't paying OpenAI as part of the partnership, said the people, who asked not to be identified because the deal terms are private. Instead, Apple believes pushing OpenAI's brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments, these people said.

Despite the agreement, the partnership for OpenAI could become expensive, as more and more Apple device users tap into ChatGPT's capabilities and suck up more of the company's compute power and budget.

However, Gurman notes that OpenAI could profit from the deal by encouraging Apple users to subscribe to ChatGPT Plus for $20 a month. If these users sign up through an Apple device, Apple may also be in a position to receive a commission.

Additionally, Apple plans to increase its earnings from AI through revenue-sharing agreements with its partners. According to the report, Apple is already discussing offering Google's Gemini chatbot as an additional option, an agreement that should be in place later this year.

Ultimately, Apple aims to take a portion of the revenue generated from monetizing chatbot results on its operating systems, anticipating that more users will rely on AI instead of search engines. Such a shift could eventually reduce the massive amounts of revenue Apple currently earns from its lucrative search deal with Google.

The report notes that Apple has yet to reach a deal with a local Chinese provider to handle chatbot feature, but has been considering an arrangement with companies such as Baidu and Alibaba. To begin with, Apple Intelligence will only be available in U.S. English, with more languages set to be supported next year.

Article Link: Apple Reportedly Not Paying OpenAI to Use ChatGPT in iOS 18

 

[winxmac]

Free promotion?

Apple loves getting money from Google but not giving OpenAI any?

 

[arkitect]

And we all know that when you don't pay, you are the product… so… yeah.

OpenAI are definitely getting something in return. Just, perhaps not in cash.

 

[bollman]

Money, money, money...
Must be funny...
In the rich mans world!

 

[krspkbl]

There’s the difference between Apple and Microsoft.

Apple acts like “We aren’t paying you! You need us. You should thank us!”

Microsoft is “Here’s $10 billion and you can use our servers”

Someone think of the AAPL shareholders!

 

[svish]

Surprised with this. Maybe initially this will be the case but might change in the future.

 

[hagar]

And we all know that when you don't pay, you are the product… so… yeah.

OpenAI are definitely getting something in return. Just, perhaps not in cash.

Yes. Exposure to 1.5 billion people.

 

[hagar]

Very smart by Apple. Shows you how big they are and how eager ChatGTP is to get into every household.

The benefits of the paid ChatGTP Plus tier are quickly diminishing though.

 

[MayaUser]

Is the other way around...like Google is paying Apple to be the default search engine

 

[bousozoku]

Is the other way around...like Google is paying Apple to be the default search engine

Google is paying for ChatGPT use. /s

 

[tobybrut]

I was actually wondering who was paying whom in this arrangement. I couldn’t see Apple paying anything by giving OpenAI so much free advertising, so this doesn’t surprise me at all. I actually thought OpenAI was paying Apple, but I guess not.

 

[MayaUser]

Google is paying for ChatGPT use.

Google is also paying Apple for Safari search default engine
Apple is getting paid

 

[t0rqx]

Yes. Exposure to 1.5 billion people.

And their data to train.

 

[Mac Fly (film)]

Not usually a Gurman-doomer, but bets this story is probably untrue.

 

[gpat]

Of course Apple is not paying money.
It's paying with their users, we're the currency.

 

[synicalx1]

Is this really surprising, when ChatGPT has a fairly extensive free tier with access to their newest model? Users will also have the additional option of signing in with their account, presumably to access paid features same as they would via the ChatGPT app/site.

 

[t0rqx]

Of course Apple is not paying money.
It's paying with their users, we're the currency.

I smell a lawsuit of digital human trafficking.

 

[andrewxgx]

And their data to train.

they're not getting any

 

[bigglow]

Apple users have greater discretionary spend than non-Apple users.

 

[kiranmk2]

I don't quite understand how Apple's system is set up.

• There is on-device processing for most tasks
• There is cloud processing for some heavy tasks on Apple-owned & operated servers
• Some requests on "world data" are optionally sent to ChatGPT (in a way that OpenAI can't build up a picture of your requests over time)

So, does this mean that Apple have developed their own genAI framework and trained an LLM in 18 months? Or have Open AI provided the ChatGPT framework to Apple which they then run on Apple servers and train with their own LLMs? Is this going to be like Maps where the Apple servers/LLMs start out quite limited (hence "world data" questions are sent to ChatGPT), but over time Apple will add more servers and train the LLMs with wider data sets so they can eventually operate an end-to-end Apple AI service?

 

[Etc_]

they're not getting any

Of course they do. This ChatGPT integration is just a fancy API call. Or why do you think the user has to confirm the requests for using ChatGPT every single time?

 

[The Apple Bitch]

Company tier list:
1. Apple
2. OpenAI
3. Google
4. Microsoft

Those above receive money and/or services from those below.

 

[The Apple Bitch]

I don't quite understand how Apple's system is set up.

• There is on-device processing for most tasks
• There is cloud processing for some heavy tasks on Apple-owned & operated servers
• Some requests on "world data" are optionally sent to ChatGPT (in a way that OpenAI can't build up a picture of your requests over time)

So, does this mean that Apple have developed their own genAI framework and trained an LLM in 18 months? Or have Open AI provided the ChatGPT framework to Apple which they then run on Apple servers and train with their own LLMs? Is this going to be like Maps where the Apple servers/LLMs start out quite limited (hence "world data" questions are sent to ChatGPT), but over time Apple will add more servers and train the LLMs with wider data sets so they can eventually operate an end-to-end Apple AI service?

I'm not 100% sure but I would recommend looking into the AI-research Apple has published for answers. They should have had the capabilities to do it on their own.

 

[Etc_]

I don't quite understand how Apple's system is set up.

• There is on-device processing for most tasks
• There is cloud processing for some heavy tasks on Apple-owned & operated servers
• Some requests on "world data" are optionally sent to ChatGPT (in a way that OpenAI can't build up a picture of your requests over time)

So, does this mean that Apple have developed their own genAI framework and trained an LLM in 18 months? Or have Open AI provided the ChatGPT framework to Apple which they then run on Apple servers and train with their own LLMs? Is this going to be like Maps where the Apple servers/LLMs start out quite limited (hence "world data" questions are sent to ChatGPT), but over time Apple will add more servers and train the LLMs with wider data sets so they can eventually operate an end-to-end Apple AI service?

Here is a video, where they explain the technical side of Apple Intelligence:

https://twitter.com/x/status/1800277157135909005

 

[bousozoku]

Google is also paying Apple for Safari search default engine
Apple is getting paid

You missed my point. The money that Google has been paying Apple could be the money that's helping Apple to not come up with any AI solution of its own.