
Photo: Apple
Apple is not paying OpenAI for ChatGPT integration in iOS 18; neither is OpenAI paying the Cupertino giant for this privilege.
A new report sheds more light on the arrangement between the two companies and details how it is more than about money.
OpenAI is getting exposure instead of money with this ChatGPT integration
Apple receives billions of dollars from Alphabet for making Google the default search engine on its devices. Given the deep ChatGPT integration into iOS 18 and macOS Sequoia, many assumed Apple or OpenAI would make millions (or billions) of dollars thanks to the partnership.
A Bloomberg report details that this is not the case. The partnership will not generate any significant revenue for both parties, at least initially. It also confirms that Apple is not paying OpenAI to integrate ChatGPT into Siri and iOS 18.
Instead, the company is giving OpenAI exposure to millions of iPhones, iPads, and Macs and hundreds of millions of new users. According to sources, Apple believes this is “of equal or greater value than monetary payments.” The partnership also benefits Apple, as it can integrate and use ChatGPT’s AI prowess for free into its OS and devices.
Apple eventually wants to make money from its AI partnerships
Things could change in the future, especially since the additional new users will increase costs for Microsoft, whose Azure cloud servers power ChatGPT.
Apple and ChatGPT hope to convert free users into paid subscribers to make money. When a user subscribes to ChatGPT Plus from the App Store, Apple will keep a part of the money as its fee.
In addition to OpenAI, Apple is open to integrating other AI services into its devices, including Google Gemini.
The report details that Apple wants revenue-sharing agreements with its AI partners in the long run. It will get a cut from them for displaying monetized results on its devices and OSes.