Apple Not Paying ‘Cash’ to OpenAI To Integrate ChatGPT on Its Operating Systems, Offering Benefits Through Distribution: Reports
According to reports, Apple would not pay any "cash" to OpenAI for integrating ChatGPT into iOS 18, iPad OS 18, macOS Sequoia. However, the tech giant would offer the AI company to pay through distribution
Cupertino, June 14: Apple WWDC 2024, held on June 10, confirmed that Apple was formally working with OpenAI to integrate ChatGPT within a year. According to some reports, Apple was still considering to partner up with Google for the Gemini AI chatbot amid issues like OpenAI Scarlett Johansson's Sky Voice; however, these speculations could not be confirmed. According to the latest reports, Apple and OpenAI did not agree on terms for direct financial gains but rather through distribution.
Such news comes as a surprise as Apple and Microsoft-backed OpenAI had been in talks for a considerable time and should have reached some financial terms. However, Macrumors reported that the iPhone maker, despite partnering with OpenAI to use its ChatGPT on different platforms like iOS 18, iPadOS 18, and macOS Sequoia for better responses, would not pay any direct "cash" to OpenAI. Citing Bloomberg, Macrumors said that "nobody" would pay cash to anybody in the Apple-OpenAI agreement. Microsoft Recall Feature Delayed Amid Criticism Over Privacy and Security: Reports.
Instead of paying by financial means, Apple would reportedly pay the OpenAI through distribution. The partnership was not agreed upon to generate revenue for either of the tech companies. Instead it was aimed at potentially lasting monetary benefits for both, according to the report by Bloomberg.
Macrumors further explained that OpenAI could become more expensive as iPhone, iPad, and other Apple users explore ChatGPT's capabilities and get more of the company's compute power and budget. The report said that as per Mark Gurman from Bloomberg, OpenAI's profit could lie with the Apple users who could be ready to subscribe to ChatGPT Plus by paying $20 per month. On the other hand, Apple could also reportedly receive a commission when the users sign up for ChatGPT Plus.
Moreover, the iPhone maker would also increase its revenue through artificial intelligence and share it with its partners. Apple also has another option to integrate Gemini AI chatbot into its devices; an agreement is expected to occur later in 2024.
According to Macrumors, Apple anticipated that more users would rely on AI to get the information they need instead of using search engines. This would allow Apple to earn revenue from monetising chatbot results on its OS. Apple's partnership with ChatGPT would reportedly lead to a revenue reduction in the future from Google's search deal. OpenAI Appoints Paul Miki Nakasone, Retired US Army General and Former NSA Head, to Board of Directors.
The reports said that Apple would consider reaching out to Chinese companies like Alibaba and Baidu to handle the chatbot feature. Apple Intelligence, the personal intelligence technology introduced by Apple, is currently available in the United States only in English. The reports said more languages would be introduced next year.
(The above story first appeared on LatestLY on Jun 14, 2024 07:06 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).