Apple and OpenAI still aren’t paying for themselves, says Bloomberg

While the partnership between Apple and OpenAI announced at WWDC this week promises to give ChatGPT a prestigious place in the Apple ecosystem, it appears that neither party is paying the other to make it happen. According to a report of BloombergMark GurmanApple believes that the exposure OpenAI will receive from being on hundreds of millions of Apple devices is “of equal or greater value than monetary payments.”

The report also says that this deal is not exclusive to OpenAI, and that Apple is in talks with Anthropic and Google to offer their respective chatbots as an alternative option, with a deal for Google’s Gemini expected to come into force later. this year. While Apple uses OpenAI’s GPT-4o model to power various AI tasks in iOS 18, iPadOS 18, and macOS Sequoia, its goal is to offer users a range of third-party AI services, similar to how Apple’s Safari browser works. supports different search engines. options.

One way Apple It is planning to make money from these partnerships, according to the Bloomberg report, is through revenue sharing agreements. This involves receiving a cut from any AI provider that monetizes results in their chatbots, like ChatGPT Plus’ $20 per month subscription plan.

Apple hopes that chatbots and LLMs will start to drive people away from using traditional search engines. This isn’t ideal for the extremely lucrative deal that sees Google pay Apple billions of dollars to be the iPhone’s default search engine, so revenue-sharing deals could be a way for Apple to make up the shortfall.

The announcements around Apple Intelligence and its OpenAI deal mark a significant development in Apple’s AI strategy, but it’s still early days. The company plans to support Apple Intelligence in additional languages ​​beyond American English next year, according to Bloombergand is considering deals with Baidu and Alibaba to offer chatbot capabilities in China, where access to ChatGPT is limited.