Apple to ‘Pay’ OpenAI for ChatGPT Through Distribution, Not Cash

From BNN Bloomberg: 2024-06-12 19:58:40

Apple CEO Tim Cook and team revealed a partnership with OpenAI to bring ChatGPT to Apple devices. The financial terms are undisclosed, but the collaboration aims to benefit both parties. Apple won’t pay OpenAI, believing the partnership’s value lies in promoting OpenAI’s technology. Meanwhile, Apple gains an advanced chatbot to engage users.

Apple’s broader push into AI includes integrating ChatGPT into Siri and writing tools. The partnership could become costly for OpenAI as usage increases, potentially leading to remuneration. OpenAI offers subscription plans, and converting free users to paid accounts could generate revenue for both Apple and OpenAI. Microsoft hosts ChatGPT on Azure.

Apple’s deal with OpenAI isn’t exclusive, and discussions with Google’s Gemini are underway. Apple also plans to offer multiple AI services to users, aiming to make money through revenue-sharing agreements. Apple’s AI services are mostly handled on devices, but the company is expanding data center operations to support new online AI services.

Expanding Apple Intelligence to other languages and countries, like China, may pose challenges due to local regulations. Apple is exploring partnerships with Chinese providers like Baidu and Alibaba to offer chatbot features in China. Apple Intelligence is currently only available in American English, with plans to support more languages next year.



Read more at BNN Bloomberg: Apple to ‘Pay’ OpenAI for ChatGPT Through Distribution, Not Cash