Apple Has Struck A Zero-Cost Deal With OpenAI To Bring ChatGPT On iPhones: What It Means – News18

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Apple is not paying OpenAI a penny to get ChatGPT on its devices.

Apple is not paying OpenAI a penny to get ChatGPT on its devices.

Apple has been late to the AI party but its WWDC 2024 focus and OpenAI’s involvement showed us the company is happy to work with others.

Apple confirmed its deal with OpenAI that brings ChatGPT to all its devices and other possible integrations for the future. OpenAI and Microsoft have been pally since their big investment deal earlier this year, but it seems Sam Altman is already planning to widen his range and bring more of these tech biggies into the equation.

Most people have assumed that Apple and OpenAI will have signed a sweet money-rich deal that will keep both the companies happy and allow them to plan for a big AI move. But a new report claims that Apple is getting ChatGPT for its devices for zero money.

That’s right, Apple is not paying OpenAI any money to pull through this deal. Some people have already dubbed this as the steal of the year, especially with respect to Apple and its deal makers who have somehow pulled this off and still got Altman to appear at the Apple Park for the WWDC 2024 this week.

Betting On The AI Future

So, what is the motive or the plan behind this deal and how do either of these companies plan to monetise their respective AI strategy? The report from Bloomberg claims the Apple-OpenAI deal is not expected to generate any meaningful revenue for either party, at least in the beginning.

The report also points out that OpenAI is happy to sign up with Apple for ChatGPT which provides them with exposure and access to “hundreds of millions” of Apple users who are likely to spend money on upgrading to the latest Apple devices to experience these AI features.

We already know that Apple is bringing ChatGPT to iOS 18, macOS Sequoia and iPadOS 18 for free. Now, imagine the scope for OpenAI to spread its wings and invariably pitch its standing among future investors to get more money that will keep the AI servers running behind the scenes.

Both Parties Gain Something

More importantly, OpenAI could see these people get a taste of the AI features and eventually decide to take the premium ChatGPT Plus plans which get them more enriched features for a monthly fee.

It is unlike Apple to go through a deal where tangible money isn’t involved. Reports have pointed out that Google paid Apple $15 billion to keep Search as its default engine on all its platforms. Apple feels that OpenAI’s big advantage in the AI race could be valuable for its own progression and help with fast-tracking its development as well.