Apple is not paying money to OpenAI as part of their ChatGPT partnership, Bloomberg News reports, but OpenAI is gaining tremendous value via exposure to millions of Apple device users.
The arrangement includes weaving ChatGPT, a digital assistant that responds in plain terms to information requests, into Apple’s Siri and new writing tools. Apple isn’t paying OpenAI as part of the partnership, said the people, who asked not to be identified because the deal terms are private. Instead, Apple believes pushing OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments, these people said.
Meanwhile, Apple, thanks to OpenAI, gets the benefit of offering an advanced chatbot to consumers — potentially enticing users to spend more time on devices or even splash out on upgrades.
ChatGPT will be offered for free on Apple’s products, but OpenAI and Apple could still make money by converting free users to paid accounts. OpenAI’s subscription plans start at $20 a month — a fee that covers extra features like the ability to analyze data and generate more types of images.
Today, if a user subscribes to OpenAI on an Apple device via the ChatGPT app, the process uses Apple’s payment platform, which traditionally gives the iPhone maker a cut.
Apple’s deal with OpenAI isn’t exclusive, and the iPhone maker is already discussing offering Google’s Gemini chatbot as an additional option. That agreement should be in place later this year.
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MacDailyNews Take: As we wrote on June 6th, “With Apple’s install base of 2.2+ billion active devices, OpenAI should be paying Apple for the privilege, just as Google pays Apple to be default search engine.”
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