From Fortune: 2024-06-13 07:42:00

Apple CEO Tim Cook and team have formed an agreement with OpenAI to integrate ChatGPT into Apple devices with undisclosed financial terms.

The collaboration aims to benefit both companies with the potential for monetary gains in the future, as Apple integrates ChatGPT into Siri and other tools to enhance user experience.

Apple is focused on expanding its AI capabilities through ChatGPT and other in-house innovations showcased at its annual Worldwide Developers Conference.

Although Apple is not paying OpenAI initially, future financial implications may arise with increased usage of ChatGPT on Apple devices potentially requiring monetary compensation.

While OpenAI faces increased costs due to hosting ChatGPT on Microsoft’s Azure cloud, Apple could generate revenue by converting free ChatGPT users to paid subscribers for additional features.

Apple’s deal with OpenAI is not exclusive, with discussions ongoing for additional chatbot options like Google’s Gemini, aiming to offer diverse AI services to users.

Apple intends to monetize AI through revenue-sharing agreements with partners, compensating for the potential decline in earnings from its Google search deal.

To succeed with Apple Intelligence, the company needs to expand language support globally, potentially facing challenges in countries like China where AI services are restricted.

Apple is exploring partnerships with Chinese providers like Baidu or Alibaba to extend Apple Intelligence features beyond English, with plans to support more languages next year.

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Read more at Fortune: Apple isn’t paying OpenAI to use ChatGPT