Yes, but this is going to bring a much larger scale to their service globally.
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Apple Reportedly Not Paying OpenAI to Use ChatGPT in iOS 18
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Let's remember, ChatGPT 4o is already free. Anyone today, without a subscription can access it for free. It has been free since 4o was released. So this deal accomplished a couple of things, Apple gets the pesty folks who go on about how Apple is "behind" to quit yapping, and OpenAi gets the seal of approval and cache that comes from being associated with the gold standard in premium consumer devices with Apple.
The cost of compute for OpenAI will surely go up with a high-profile placement on Apple devices, but they had already calculated the cost for free access when they released. it.
It seems like a win for both.
I can guess that the release of the upcoming ChatGPT 5, or whatever it is called, will probably not be free.
The cost of compute for OpenAI will surely go up with a high-profile placement on Apple devices, but they had already calculated the cost for free access when they released. it.
It seems like a win for both.
I can guess that the release of the upcoming ChatGPT 5, or whatever it is called, will probably not be free.
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The Apple on-device AI is pretty good from everything I've seen. It's pretty fast and less prone to hallucinations for the specialized system features on Apple devices.
I do not think Apple needs its own LLM in the size and scope of OpenAI, Anthropic, or Gemi. Those guys are still figuring it all out. And those models are in no way shape or form ready, or even a good fit for a consumer company like Apple as it stands today.
Anthropic seems to have their sh*t together when it comes to AI safety, and they are good at publishing and explaining the results of their work on interpretability. OpenAi and others have also been publishing their work on interpretability and sounds like a promising step toward better understanding how LLMs work.
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Mozilla (the Firefox folks) gets 80% of its funding from Google searches. Google spreads the wealth around.
It's kinda sad to see Google get a black eye with the AI search PR debacle. Messing up their bread and butter over AI panic
Apple's AI response so far has been much more judicious. Hammer heavily on privacy which just happens to work out well for them. Leverage their integration in a way no one else is in position to do. Do most stuff on device, save money on compute, offload the hairy stuff for now to openAI. Except for the dubious sourcing for their generative stuff (publicly available sources? sounds like you scraped the web), they keep their hands mostly clean. Very conveniently push people to newer hardware, too (oops how'd that happen?) We'll have to wait and see how well they execute, e.g.,, how Siri 2.0 will do in real world, but I think their vision is broadly the right one
It's also highly beneficial for Google to support Mozilla as it helps with their monopoly concerns. It's not just out of the goodness in their hearts. But yes I agree it is good either way.
As for the need for newer devices to run the new AI features, Apple has been at the forefront including an NPU to their devices. Windows is just getting their first devices with an NPU this year with the Qualcomm chips. It is said that the AI features in Windows require an NPU chip capable of 40 TOPS (40 trillion operations per second) which the new Qualcomm chips have, whereas the older Apple chips have nowhere near that. The newest M4 iPad Pro is capable of somewhere around 38 TOPS. Which I am sure the new iPhones will probably match.
So new chips are indeed required to support the newest AI features.
Also goes to show how foolish the folks whining and complaining as to why the new M4 iPad Pro has a more powerful chip. Besides the new AI features, the new M4 iPad Pro necessitates a more powerful GPU just to run the dual-layer OLED display.
And the reason the older 2018 iPad Pro has been as viable as it is today has been because of the powerful forward-thinking chips it has always been driven by.
exposure has made money obsolete. corporations run on exposure now, nothing weird going on here.
So simply put and connecting the dots:
Microsoft pays for OpenAI hosting and training. In return Microsoft has the advantage in generative AI against Google and any others. That is a long term investment benefiting every product within Microsoft. Competitive advantage.
OpenAI continues to offer free teair, gather data, and improve their services. offers paid version for latest top quality services. Text, video, image, voice, sensors… etc
Apple uses their own LLM and other models on device trained by them for their devices for personal context. And will offer the private cloud compute also for apples own models that can’t be on device.
if the user wants to learn about history, science, news, whatever outside knowledge they allow you to use ChatGPT with consent. And soon will add google Gemini and whatever.
now when someone wants more AI services they would subscribe to openAI or Gemini google or whatever.
Microsoft pays for OpenAI hosting and training. In return Microsoft has the advantage in generative AI against Google and any others. That is a long term investment benefiting every product within Microsoft. Competitive advantage.
OpenAI continues to offer free teair, gather data, and improve their services. offers paid version for latest top quality services. Text, video, image, voice, sensors… etc
Apple uses their own LLM and other models on device trained by them for their devices for personal context. And will offer the private cloud compute also for apples own models that can’t be on device.
if the user wants to learn about history, science, news, whatever outside knowledge they allow you to use ChatGPT with consent. And soon will add google Gemini and whatever.
now when someone wants more AI services they would subscribe to openAI or Gemini google or whatever.
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We're not. We're paying for Apple hardware, software and services.
Yep, but that mantra here is used only to blame Google; for "friend company", here people are happy to be the product.
If you think modern tech companies abide by "Contracts" these days just search around.
Apple, "Look we can't just give you Apple user's data, it will taint our brand."
ChatGPT, "OK, look will sign a contract that we are not storing the data, but we don't want you looking to hard as we do the immediate processing to extract what we need."
Apple, "Works for us"
Which is ridiculous because even if they didn't pay Apple, most people would still switch to Google as default. Every other search engine is ****. I use Edge and switched from Bing to Google the moment I first opened it.
The payment is for Google being the default engine in Safari. Apparently Google knows, that the majority of users never change the default.
Google search is hot garbage. People are trying Perplexity and even paid search engines to get away from Google Search.
Google Search is what happens when there is a monopoly. They don't care or try anymore. They just try to milk their monopoly for everything they can.
We will soon find out the outcome to the antitrust suit but I hope they come down hard and I hope they make Apple stop accepting what is basically bribe money to retain their monopoly. It makes it even more difficult for fair competition when they pay essentially huge bribes to companies like Apple to keep competition at bay.
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Didn’t watch the wwdc, huh?
User selects when to use ChatGPT.
Like most new services and sw, free initial trial. Once there is an established user base, pay or monetize to use.
It said "OpenAI could profit from the deal by encouraging Apple users to subscribe to ChatGPT Plus for $20 a month" when using ChatGPT with Apple Intelligence what gain would you get to pay for it? And how would the build in version know your paying for it over using the website?
I assume there will be a way to link a paid account to Siri somewhere in the settings app to unlock full functionality. Heck, Apple might even bake the option to subscribe directly in, if they are getting a cut.
I wonder who sub to openAI now. I had the feeling it was mostly programmers.
The usefulness of paid openAI derives from giving it lots of context. Ie, handling over your code, or giving it access to lots of data about your business. You won't be doing that with openAI on iPhone. So I don't know if conversion rate is going to be very good for them
The other reason is if you just use it a lot. I don't know if there's an agreement to limit number of queries per day per device or user. That would be one way to push people to subscribe (conveniently through Apple, so they get their 30% of course). They may also let you turn off the each-use confirmation warning/nag if you're subscribed
The usefulness of paid openAI derives from giving it lots of context. Ie, handling over your code, or giving it access to lots of data about your business. You won't be doing that with openAI on iPhone. So I don't know if conversion rate is going to be very good for them
The other reason is if you just use it a lot. I don't know if there's an agreement to limit number of queries per day per device or user. That would be one way to push people to subscribe (conveniently through Apple, so they get their 30% of course). They may also let you turn off the each-use confirmation warning/nag if you're subscribed
britannica
Can you provide more information about the firewalls? I think that it was ChatGPT that said that their business model depended on scrubbing from free data sources. Many good content sites are gone due to the reluctance of people to pay. I would like to see them paying for the data they use so we get more, not less, good data sources.
There are AI scrubbing lawsuits from the New York Times, Getty Images and book authors.
www.nytimes.com
www.nytimes.com
Hope they can reach a mutually beneficial agreement.
Can you provide more information about the firewalls? I think that it was ChatGPT that said that their business model depended on scrubbing from free data sources. Many good content sites are gone due to the reluctance of people to pay. I would like to see them paying for the data they use so we get more, not less, good data sources.
There are AI scrubbing lawsuits from the New York Times, Getty Images and book authors.
The Times Sues OpenAI and Microsoft Over A.I. Use of Copyrighted Work (Published 2023)
Millions of articles from The New York Times were used to train chatbots that now compete with it, the lawsuit said.
Franzen, Grisham and Other Prominent Authors Sue OpenAI (Published 2023)
The suit, filed with the Authors Guild, accuses the A.I. company of infringing on authors’ copyrights, claiming it used their books to train its ChatGPT chatbot.
Hope they can reach a mutually beneficial agreement.
FYI @dankron
Nope. Apple’s contract with OpenAI says that they must wipe your data once they respond to your request and they may not retain any data or use any for training purposes.
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Yep, and if you bought both MS and Apple shares 10 years ago, then the MS shares would be worth more today. Apple's immense greed is actually costing them profits.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!