From Forbes Media: 2024-06-14 10:00:00

At the WWDC, Apple introduced Apple Intelligence, partnered with OpenAI, and integrated ChatGPT into Siri. This agreement allows Apple to use ChatGPT for AI programs at no cost, protecting customer privacy and offering access to a worldwide database. OpenAI gains access to over one billion Apple customers for upselling premium services.

Apple customers receive ChatGPT for free, while OpenAI aims to convert users to pay for premium services starting at $20 a month. The deal raises questions about revenue sharing, as Apple has not disclosed if they will receive a cut from OpenAI’s premium fees. The partnership is non-exclusive, and Apple plans to work with other AI vendors.

Apple’s partnership with OpenAI could affect future collaborations with other companies like Google. Elon Musk expressed concerns over OpenAI becoming Apple’s first Gen AI partner, potentially hindering his own Gen AI product. Despite the feud, the partnership benefits Apple, OpenAI, and customers, leading to a win-win-win situation.

Financial disclosure: Apple and Google are subscribers to Creative Strategies research reports.



Read more at Forbes Media: Is Apple’s Deal With OpenAI Good For Both Companies Or Only Apple?