Apple Reportedly Isn't Paying OpenAI to Use ChatGPT in iPhones The next big iPhone update brings ChatGPT directly to Apple devices.
By Sherin Shibu Edited by Melissa Malamut
Key Takeaways
- Apple reportedly isn't paying OpenAI to bring ChatGPT to the iPhone.
- A report from late Wednesday reveals the financial implications of the Apple-OpenAI partnership, which has Apple incorporating ChatGPT into Siri.
- According to Bloomberg's sources, Apple is paying OpenAI in exposure to more devices and users, not cash. iPhone users get access to ChatGPT for free.
Apple revealed a new partnership with ChatGPT-maker OpenAI at its WWDC event earlier this week that brings ChatGPT to iPhone, iPad, and Mac devices. Now, new details have emerged about the deal's financial aspects — and it appears Apple isn't paying OpenAI to use its technology.
Apple announced that new, free AI capabilities were on their way with iOS 18. One standout feature is that Siri can send questions it can't answer straight to ChatGPT, an AI chatbot that responds to queries in written text.
Citing insiders on Wednesday, Bloomberg reports that OpenAI won't get paid directly by providing ChatGPT to Apple users.
OpenAI will instead have the benefit of Apple's expansive customer base using its technology; some could convert to paying customers. Apple has over two billion active devices and reportedly considers visibility on them to be of equal or greater value than any payment.
Still, there is a cost to running AI. OpenAI has to pay Microsoft to use its cloud computing system to run ChatGPT. The more ChatGPT users, the higher the bill.
ChatGPT currently draws an estimated 180 million monthly users.
OpenAI CEO Sam Altman, left, and Apple senior vice president of services Eddy Cue, right, during the Apple Worldwide Developers Conference on Monday, June 10, 2024. Photographer: David Paul Morris/Bloomberg via Getty Images
Apple indicated at WWDC that it does not have an exclusive partnership with OpenAI; Apple senior vice president of software engineering Craig Federighi said at the event that other AI models would be coming to Apple devices in the future.
Related: Apple Talking to Google About Putting Gemini AI in iPhones
Though OpenAI may get more exposure from the deal, adding ChatGPT to Apple products could boost sales of the iPhone, Apple's biggest revenue generator.
Apple's AI software update is free, but it will only be available on two iPhone models out so far: the iPhone 15 Pro and 15 Pro Max.
Apple's expected new iPhone this fall could prompt its existing customers who use older models to upgrade.
Related: Apple's AI Has a Catch — And It Could Help Boost Sales
