Apple and OpenAI deal is for ChatGPT exposure, not money

Written on 06/13/2024
Taylor Bell

One of the biggest announcements at the last WWDC24 was the integration of ChatGPT into iOS 18. However, it seems that Apple and OpenAI have reached an agreement in this regard that does not include a revenue sharing strategy, which means that the Cupertino giant will rely on this monetization technique in the future.

Apple's market share in the smartphone sector is huge. The brand sells tens of millions of iPhones worldwide every year. So having a place in this ecosystem as an integrated service is a very attractive idea for everyone. Apparently Apple and OpenAI are thinking the same thing, so neither is currently asking for anything from the other, according to Bloomberg.

Neither Apple nor OpenAI pays for ChatGPT integration in their current contracts.

The report indicates that Apple considers the exposure on millions of devices worldwide to be "equal to or more than a monetary payment." Although ChatGPT is very well known today, some people still hesitate to try the service for the first time. But having it integrated and ready to use on the iPhone could be an ideal start to enjoying the power of AI.

The source adds that Apple is not seeking exclusivity with ChatGPT. In fact, the company is said to be in talks with Google to integrate with Gemini, as well as partnering with AI-focused startup Anthropic. It is also said to be in talks with Baidu and Alibaba to offer AI integration in China, as services from companies like OpenAI and Google are restricted or banned in the Asian country.

Apple's goal is to make iOS the access hub for the most popular AI services. These services will exist alongside Apple Intelligence, the company's own AI platform. Third-party services will support tasks that Apple Intelligence cannot yet perform.

Apple plans to retain a share of OpenAI's paid plans as a future revenue sharing strategy.
In the future, Apple will likely rely on a monetization model based on revenue sharing with OpenAI and other companies. The report states that the company will retain a portion of premium subscriptions acquired through its payment platform. Essentially, it will implement a similar model to the App Store. Ultimately, Apple wants people to replace traditional search engines with its AI-powered services.