Apple finally unveiled its artificial intelligence (AI) strategy at WWDC 2024, which included the launch of Apple Intelligence and integrating OpenAI’s ChatGPT into iOS 18.
While we knew before the announcement that Apple was working on a deal with OpenAI, we still don’t know the financial terms the companies reached—and it could be that there are no financial terms.
Per a report from reliable Mark Gurman at Bloomberg, citing people “briefed on the matter,” Apple and OpenAI’s arrangement isn’t expected to generate meaningful revenue for either party. At least to start — revenue could come in the future.
Bloomberg reports that Apple isn’t paying OpenAI and believes pushing ChatGPT to millions of Apple devices is worth more than money. At the same time, Apple gets the benefit of offering a chatbot to its customers.
Though money might not be changing hands now, it could in the future. Bloomberg suggests it will be necessary since OpenAI will have higher costs from the increase in users thanks to the ChatGPT integration. That could come from the company’s subscription for advanced version of ChatGPT — a subscription that, if purchased on an Apple device, means the iPhone maker also gets a cut.
Elsewhere, Apple reportedly plans to strike revenue-sharing deals with AI partners, similar to the company’s agreement with Google for search. However, Apple is working on deals to include Google’s Gemini chatbot and is in talks with Anthropic, which just launched its Claude chatbot in Canada. It’s possible Apple could strike revenue share agreements with multiple AI partners.
Source: Bloomberg
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