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Apple Reportedly Not Paying OpenAI to Use ChatGPT in iOS 18
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Explains the stock surge.
No money now but when revenue is generated Apple will take a chunk.
Are we the product now?
No money now but when revenue is generated Apple will take a chunk.
Are we the product now?
The OpenAI connection is opt in. If you don't want it you don't have to use it. No data is sent without your consent.
Yes, we are. At least if you opt-in.
Yes, they will run on device AI for the simpler tasks and other bigger tasks you can send to Open AI
In your dreams. Of course they are getting data, why do you think you have to consent for the query to be addressed by ChatGPT? Clearly whichever privacy arrangement is in place for ‘Apple intelligence’ does not apply when you choose to use ChatGPT.
How does the KPI/goals work? Won't Apple be more incentivized for Siri to suck so people subscribes to ChatGPT and they can get a split from that? Apple Intelligence uses Apple's infrastructure, which costs money to run, and it's free for the users. Apple also cannot monetize Apple Intelligence because of privacy.
Let’s not forget that Google are not paying Apple out if charity. They are effectively paying Apple to have access to people’s search trends (even when those are anonymous), as well as to offer sponsored search results, ads, etc. All of this is of a good value to Google and probably is worth well more than what they pay Apple.
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I won't be touching OpenAI and ill wait for Gemini to be added, Altman is a snide and liar.
Gemini will hopefully give us image searches like circle to search on iPhone with the full power of google search while chatgpt will use bing... or say it is but secretly use google AGAIN.
Gemini will hopefully give us image searches like circle to search on iPhone with the full power of google search while chatgpt will use bing... or say it is but secretly use google AGAIN.
Yes, they have a smaller 3B model running on device and a larger 'GPT4 Turbo' rival running on the Private Cloud.
Personally, a good analogy of the private cloud is apple hosting your Mac Studio server at their server farm for free, which your iPhone can talk to run remote AI queries. And Apple knows nothing about it.
Yeah, this will get really interesting.
Open AI/Altman doesn't care about Scarlett Johansson's No to use her voice for their system and they will do whatever they want with the data from its users.
Open AI/Altman doesn't care about Scarlett Johansson's No to use her voice for their system and they will do whatever they want with the data from its users.
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There already is a free ChatGPT tier right now so not surprising they are not charging Apple for this at the moment. OpenAI is definitely winning here with Apple putting them front and center of their AI push
AI is going to be the new search engine monopoly. When AIs become good search engines themselves where does that leave Google Search...
To put it more accurately, we are the leverage. Apple has aggregated the best customers in the world, and the beauty of this is that they are not afraid to use this access to its user base as leverage in its discussions with developers and suppliers.
Here's what I think is happening here.
1) Apple clearly has little desire to come up with their own chatGPT / Gemini competitor, and why should they? It costs a ton of money to train and develop, and it's not something Apple has a competitive advantage in or can monetise directly. What Apple does have to offer is a massive user base that they can offer openAi access to, and on Apple's terms.
2) At the same time, I would rather not see Apple partner with Google on this, because I am getting flashbacks of Google Maps all over again. Instead, what we get is chatGPT integrated with iOS at a system level, which should be able to fight off a Gemini-integrated Android OS on a features level.
3) From OpenAI's perspective, they may also not have much choice in this matter. Google already has Gemini, and if they don't take Apple up on this deal, Apple may well find another LLM willing to partner with them, even if that alternative is not as good as theirs. Despite not getting any user data from Apple, openAI can at least get access to Apple's user base and maybe sell more chatGPT subscriptions that way (and Apple gets a 30/15% cut out of this as well, presumably).
If my understanding is correct, this encapsulates what I find most impressive about Apple (which I think many people still either don't get, or love to mischaracterise as them exhibiting monopolistic behaviour). Apple, better than anyone else, understands its position as an aggregator in the value chain, and does not hesitate to bring that position to bear on companies and developers in order to serve its interests (and by extension, the interests of its user base as well) on its terms.
For a company which until recently, was criticised as being way behind in the AI race, I think that Apple is once again, right on time, and right where they need to be. They have so far avoided a Microsoft-level controversy, and I believe their promise of privacy and security will go down well with their users (and with consumers in general), making Apple well-positioned to "do AI right".
If any of you wonder why I remain such an Apple fanboy, this is the reason why. Apple's ability to execute remains as impressive as ever. As to whether they do actually deliver on this promise, well, we will just have to wait and see. But so far, kudos to Apple. 😊
If Apple, and by extension you, aren't paying for it, then the price is probably your data. But 'assurances' gonna assure.
You are comparing Apples to Oranges. MS reasons for working with Openai are long term. Apple's reasons are short-term: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!
Apple: Access to top tier LLMs and learn from Openai whilst developing their own LLM that will be capable of powering all inference on device in 2-3 years. This partnership is just a stop gap. Apple is famous for forming partnerships only to make the partner obsolete by copying their features, making them native or bundling with existing services.
Microsoft: Together with Openai they are building a 100billion super computer that will help the US win the race to AGI. In the meantime, MS is able to offer Openai APIs that are hosted on Azure making it easy for hundreds of thousands corporations to onboard ai using existing billing. MS also gets to use Openai for their own products whilst they develop their own LLM to catchup.
Openai: They are just playing the field, ensuring that options are kept open as no one knows what the landscape of software, hardware and ai will look like in 5-10 years.
I agree with your leverage part, but:
1) Apple just introduced Apple Intelligence?! Clearly they want their own AI infrastructure, but they are late to the party so they have to partner with OpenAI until their own foundation is "good enough" to replace that. You can find more info about, what and how they are training their own models (spoiler: "licensed data, including data selected to enhance specific features, as well as publicly available data collected by our web-crawler, AppleBot") on the dev site.
Edit: And of course Apple could monetize it in the future. Once Apple Intelligence is out of beta it could get its own subscription, be part of a paid iCloud membership or Apple One. They even could offer a "business tier" with specialized features for developers,...
2) They said during the Keynote they want to include more models and plattforms in the future. So Gemini is just one of them. I would argue the integration is not at a system level as you said. They showcased how it works, basically local on device first, then Apples Cloud and if that is not enough the user gets asked if they want to use third-party services. Even in the video it just looks like a regular ChatGPT API call (which they easily can replace with any other plattform if they want or maybe the user sets in the settings).
3) If you consent to the request for using ChatGPT of course they'll get your user data. Because why consent in the first place? I agree with the subscription part, but I don't think Apple gets a cut.
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Yes Apple has two LLMs: one for on device processing and one for server side. Contrary to what a lot of people are saying those models are quite good. Local one is state of art and server one is not that far behind gpt4.
More info here:
Introducing Apple’s On-Device and Server Foundation Models
At the 2024 Worldwide Developers Conference, we introduced Apple Intelligence, a personal intelligence system integrated deeply into iOS 18…
Attachments
I hope there will be a switch to turn all the cloud AI stuff off. I don't want opaque blobs of personal data shipped off into the ether. I use iPhones because I value my privacy. Otherwise I could just as well buy into the Android/Google ad-economy.
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.
Article Link: Apple Reportedly Not Paying OpenAI to Use ChatGPT in iOS 18
Hmmm... I'm guessing that there's another EU law-suit in the works against Apple because of this commission? 😉
So Linux users are the product then?
If the report is correct, what OpenAI gets is access to hundreds of millions of potential customers plus even more name recognition.
Help me understand this?
So What exactly is the point of owning a Pro iPhone now in terms of ChatGPT , if you still have to pay to use the advanced features ?
So What exactly is the point of owning a Pro iPhone now in terms of ChatGPT , if you still have to pay to use the advanced features ?
OpenAI isn't allowed by Apple to use the data to train their models.
Do you have a source for that? I am not trying to argue, just curious where they say this.
Edit: Found this:
That's a little bit cryptic. They won't store the data, but they still could use it? And if I login with my OpenAI account all the rules won't apply?
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