On June 10, Apple announced a cooperation with OpenAI to incorporate the latter’s artificial intelligence (AI) chatbot ChatGPT into iPhone, iPad, and Mac devices during the Worldwide Developers Conference (WWDC) 2024 keynote event. According to a recent claim, Apple is neither providing any monetary incentives to the AI startup as part of this agreement, nor is OpenAI paying a fee to the iPhone manufacturer. However, the transaction apparently still allows both parties to earn considerable financial benefits.
The Apple-OpenAI deal does not entail a monetary exchange
According to Bloomberg’s Mark Gurman, the Apple-OpenAI agreement “isn’t expected to generate meaningful revenue for either party—at least at the outset.” According to insiders briefed on the situation, Apple feels that the exposure OpenAI’s brand and technology would receive as a result of reaching “hundreds of millions” of Apple consumers will outweigh the worth of monetary compensation.
This does not imply that OpenAI is funding the Cupertino-based tech behemoth. Unlike the Google-Apple contract, in which the former reportedly paid $15 billion (approximately 1,25,319 crores) to remain the default search engine on iPhone, iPad, and Mac in 2021, this arrangement will not provide Apple with any direct monetary benefits. Instead, according to the article, Apple hopes to lure more people to buy its smartphones (or upgrade if they already possess one) by introducing ChatGPT’s AI capabilities.
According to the source, Apple does not intend to stop with incorporating ChatGPT into its operating systems. The corporation is thought to be in negotiations with Google about adding Gemini’s chatbot as an extra option. Craig Federighi, Senior Vice President of Software Engineering at Apple, hinted to this at a post-WWDC keynote session.
Gurman also alleges that the iPhone manufacturer has conducted negotiations with Anthropic, the creator of the Claude AI chatbot, as a prospective collaborator. According to reports, the company’s AI strategy would provide consumers with numerous AI services from which to pick.
Notably, Apple is powering numerous AI capabilities in its devices using an in-house AI model that will analyze data both on-device and through the recently revealed Private Cloud Compute servers.
