Apple Is Not Paying OpenAI to Use ChatGPT in Its AI

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Key Takeaways

  • Apple isn’t paying OpenAI to use ChatGPT on its latest devices.
  • This could become costly for OpenAI over time as the number of ChatGPT users rises.
  • Converting free ChatGPT users to paid users could be a source of remuneration for OpenAI - and Apple.

Apple is not paying OpenAI for using its LLM in its recently announced AI. However, the partnership is still a big win for the ChatGPT developer. 

At WWDC 2024, Apple introduced Apple Intelligence, including plans to integrate ChatGPT into its latest devices. Still, it won’t be paying OpenAI to use the large language model (LLM).

ChatGPT will be woven into Apple’s Siri and new writing tools. However, according to Bloomberg, those briefed on the deal believe pushing OpenAI to Apple’s brand and technology is of equal or greater value than remuneration.

Why Free Partnership Is Valuable for OpenAI?

It’s a win-win for Apple as offering ChatGPT to consumers could encourage them to spend more on Apple devices. Also, though Apple users can use OpenAI’s digital assistant for free on the brand’s latest devices, free users could be converted to paid users.

Anyone upgrading to ChatGPT Plus on an Apple device will do so through the ChatGPT app, which uses Apple’s payment platform. This means the Phone manufacturer gets a cut.

ChatGPT’s integration with iPhones, iPads, and Macs can become costly for OpenAI as it pays for the LLM to be hosted on Microsoft Corp’s Azure cloud-computing system. Rising ChatGPT users means more expense for OpenAI, and the company’s budget could take a significant hit.

The Apple and OpenAI partnership has the potential to be a lucrative one for both sides. Still, it is not initially expected to be a meaningful source of revenue for either at the outset. That’s not to say that monetary remuneration won’t feature later.