Apple is not paying OpenAI for ChatGPT access in iOS 18, according to a new report. Neither is OpenAI paying Apple for the privilege of integrating its chatbot into millions of iPhones later this year.
A news story sheds light on the high-profile arrangement between the two companies — and details how it is more than about money.
OpenAI is getting exposure instead of money for ChatGPT access
Deals like this can prove lucrative, with Apple receiving payment for prime placement on the world’s most popular smartphones. For instance, Apple rakes in billions of dollars from Alphabet for making Google the default search engine on its devices. Given the ChatGPT integration into the upcoming iOS 18 and macOS Sequoia, many assumed Apple or OpenAI would make millions (or billions) of dollars thanks to the partnership.
A Bloomberg report says that is not the case. The partnership will not generate any significant revenue for either party, at least initially. It also confirms that Apple is not paying OpenAI to build ChatGPT access into Siri and iOS 18.
Instead, the deal with Apple will give OpenAI exposure to millions of iPhones, iPads and Macs — and hundreds of millions of new users, many of whom are unfamiliar with AI services like ChatGPT. According to sources, Apple believes this is “of equal or greater value than monetary payments.” The partnership also benefits Apple, as it can use ChatGPT’s AI prowess for free in its operating systems and devices.
Apple eventually wants to make money from its AI partnerships
Things could change in the future, especially since the additional new users will increase costs for Microsoft, whose Azure cloud servers power ChatGPT. At some point, Apple and ChatGPT hope to convert free users into paid subscribers. When a user subscribes to ChatGPT Plus from the App Store, Apple will keep a part of the money as its fee.
In addition to OpenAI, Apple plans to bring other AI services into its devices, including Google Gemini. The report details that Apple wants revenue-sharing agreements with its AI partners in the long run. It will get a cut from them for displaying monetized results on its devices and operating systems.
