Apple recently announced a significant partnership with OpenAI to integrate ChatGPT into Apple’s products like the iPhone, iPad, and Mac. However, both entities chose to keep the financial details undisclosed.
The question of who is compensating whom in this collaboration, which holds promising long-term financial benefits for both parties, remains unanswered as of Monday. According to insiders familiar with the matter, it’s anticipated that this partnership won’t immediately yield substantial revenue for either Apple or OpenAI.
The agreement involves integrating ChatGPT, an AI-powered digital assistant known for its straightforward responses to queries, into Apple’s Siri and various writing tools. Sources reveal that Apple isn’t making direct payments to OpenAI for this collaboration. Instead, Apple sees the value in amplifying OpenAI’s technology and brand presence across its vast user base, considering it to be equally or even more valuable than financial compensation.
On the other hand, Apple stands to gain from offering its users an advanced chatbot experience, potentially leading to increased user engagement and possibly driving sales of upgraded devices. Both Apple and OpenAI declined to comment on the specifics of the partnership.
This collaboration with OpenAI is a part of Apple’s broader strategy to advance its capabilities in artificial intelligence (AI). During its annual Worldwide Developers Conference keynote, Apple showcased various AI features for its devices, including the iPhone, iPad, and Mac.
While the financial aspect may not have been a primary concern in the Apple-OpenAI deal, it could become a factor in the future. Currently, the partnership could pose financial challenges for OpenAI, as hosting ChatGPT on Microsoft’s Azure cloud-computing platform incurs expenses for OpenAI, which increase with usage.
Furthermore, integrating ChatGPT into Apple’s devices could significantly add to OpenAI’s computing costs, although user adoption is optional and limited to recent Apple products.
