Apple Reportedly Not Paying OpenAI to Use ChatGPT in iOS 18

[sideshowuniqueuser]

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.

Um, all Apple did was get OpenAI's free version on the product.... for free. And "free" in this case means your data is the payment. Any use of ChatGPT does not stay on phone, it is via OpenAI's servers.

The only AI that stays on phone, is going to be Apple's AI, aka Siri 2.0, which by all accounts is actually underwhelming compared to Apple's marketing hype.

 

[Tagbert]

Um, all Apple did was get OpenAI's free version on the product.... for free. And "free" in this case means your data is the payment. Any use of ChatGPT does not stay on phone, it is via OpenAI's servers.

The only AI that stays on phone, is going to be Apple's AI, aka Siri 2.0, which by all accounts is actually underwhelming compared to Apple's marketing hype.

What is different about Apple’s contract with OpenAI is that ChatGPT is prevented from storing your data and from using it for training. They are required to wipe the data after each request.

 

[Abazigal]

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.

How do we know that Apple would be doing better financially had they adopted the proposals raised in this forum?

 

[rafark]

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.

It’s giving entitled influencer who demands free stuff in exchange for a review or shoutout

 

[rafark]

I just can't believe that is all they get. Exposure and "maybes" don't pay the bills.

Especially considering how expensive is to run these models on the cloud. It’s so expensive openai even stopped accepting new premium accounts temporarily last year because they couldn’t handle the load.

 

[rafark]

My guess is OpenAI went into this knowing they will get 1.5 billion new customers from iPhone, Mac, and iPad customers. If only a tiny fraction of them sign up for the paid version, they will make enormous amounts of money. Say only 0.01% sign up. That’s still 1.5 million new paying customers. Even if OpenAI gets no new data at all to train their AI, they still make huge amounts of money. At $20/month, that’s $30 million per month in revenue.

Do you have an idea of how much it costs to handle 1.5 billion users? It’s very expensive to run the models. Like, many many times more expensive than any other cloud service out there. If a tiny fraction sign up for their paid plans they’ll still lose money. There’s something more to this that we don’t know.

 

[tobybrut]

Do you have an idea of how much it costs to handle 1.5 billion users? It’s very expensive to run the models. Like, many many times more expensive than any other cloud service out there. If a tiny fraction sign up for their paid plans they’ll still lose money. There’s something more to this that we don’t know.

With the vast majority of off-device queries going through Apple's Private Cloud Compute servers, I'd be more concerned with whether Apple's servers will be capable. We'll see if both Apple and OpenAI will be up to the job.

 

[hagar]

Um, all Apple did was get OpenAI's free version on the product.... for free. And "free" in this case means your data is the payment. Any use of ChatGPT does not stay on phone, it is via OpenAI's servers.

The only AI that stays on phone, is going to be Apple's AI, aka Siri 2.0, which by all accounts is actually underwhelming compared to Apple's marketing hype.

I don’t know about that: I can’t imagine Siri’s ChatGTP will have quota, which the free version has. So it is better.

Also, what’s my data? My anonymised queries about the world. I don’t see how that’s more worrisome than Googling.

 

[GrayFlannel]

Apple is in talks to invest in OpenAI, a move that would cement ties to a partner integral to its efforts to gain ground in the artificial-intelligence race. Thrive Capital is leading the round.

MS owns 49% of OpenAI’s profits after initially investing $13b.

WSJ