Apple not paying OpenAI for ChatGPT in iOS 18

New report from Bloomberg states Apple is not paying OpenAI as part of this partnership

Web Desk - Jun 13, 2024

At WWDC on Monday, Apple announced its eagerly awaited collaboration with OpenAI to introduce ChatGPT to iOS 18. Although the specifics of the agreement between Apple and OpenAI have not been disclosed, a new report from Bloomberg offers some insights. According to this report, Apple is not paying OpenAI as part of this partnership.

Mark Gurman clarifies that the alliance between Apple and OpenAI “isn’t expected to generate meaningful revenue for either party – at least at the outset.” Consequently, there is no monetary exchange between Apple and OpenAI.

In fact, Apple reportedly values the exposure that the iOS 18 integration provides OpenAI as “of equal or greater value” than financial compensation.

Looking ahead, Bloomberg suggests that Apple aims to establish revenue-sharing agreements with AI companies. In such an arrangement, Apple would receive “a cut from AI partners that monetise results in chatbots on Apple platforms.”

The integration of ChatGPT in iOS 18, iPadOS 18, and macOS Sequoia will be available at no cost for users who opt-in. ChatGPT Plus subscribers will have the ability to sign in to their accounts to access additional features.

Currently, OpenAI’s standalone ChatGPT app for iOS allows payment for ChatGPT Plus via Apple’s In-App Purchase system, which gives Apple a 15-30% commission on those subscriptions.

This collaboration represents a significant step in AI integration for Apple’s ecosystem, enhancing user experience with advanced AI capabilities while laying the groundwork for potential future revenue streams from AI partnerships.