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Why Apple isn't paying for ChatGPT in iOS 18

Milan Jovicic by Milan Jovicic
June 13, 2024 - 2:27 PM CEST
in Apple News
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iOS 18 ChatGPT

Image: Apple

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The integration of ChatGPT in iOS 18 is one of the most exciting announcements from Apple at this year's WWDC. This partnership between Apple and OpenAI opens up new possibilities for users and brings advanced AI technology directly to your devices. Interestingly, Apple does not pay OpenAI for this integration. What is behind this agreement and what benefits does it offer you?

You've probably heard of ChatGPT, OpenAI's chatbot that's able to respond to your queries in simple terms. Now, with iOS 18, this impressive technology will be integrated directly into your iPhone. Without Apple paying OpenAI for it. But why did Apple make this decision and what does it mean for you as a user? Let's take a look behind the scenes and explore the details of this exciting partnership.

The details of Apple's agreement with OpenAI

According to a report According to Bloomberg's report, Apple will not make any payments to OpenAI as part of this partnership. Instead, the agreement is based on the belief that awareness and distribution of the OpenAI brand through its integration into iOS 18 has similar or even greater value than financial payments. Bloomberg's Mark Gurman describes this partnership as one that "will not generate significant revenue for either side - at least not initially."

Why doesn't Apple pay?

Apple and OpenAI have decided that the real value lies in the massive adoption and use of the technology. By integrating ChatGPT into iOS 18, iPadOS 18, and macOS Sequoia, OpenAI will gain access to millions of users worldwide. This provides a huge visibility and usage base that could ultimately be more valuable than direct cash payments.

Benefits of integration for users

Integrating ChatGPT into your Apple devices will provide you with numerous benefits. Here are some of the most important aspects you should know:

  • Improved Siri functionality: ChatGPT will be integrated with Siri, meaning you'll get even more precise and contextual answers to your questions.
  • New writing apps: With the new integration, you can benefit from ChatGPT's advanced text generation capabilities in writing apps on your iPhone, iPad or Mac.
  • Free to use: ChatGPT integration will be free for all users. Only additional features reserved for ChatGPT Plus subscribers require registration and payment.

Future plans and monetization

Bloomberg further reports that Apple plans to enter into revenue-sharing agreements with AI companies in the future. This means that Apple could receive a share of the revenue generated by AI partners who monetize their chatbot output on Apple platforms. This could be a lucrative revenue stream for both Apple and its AI partners.

ChatGPT Plus and in-app purchases

OpenAI's standalone ChatGPT app already supports payment for ChatGPT Plus through Apple's in-app purchasing system, with Apple receiving a 15-30% cut of those subscriptions, showing how both companies are already benefiting from the partnership.

Improved features through ChatGPT in iOS 18

The integration of ChatGPT in iOS 18 is a big step forward for Apple and OpenAI. Without any financial payments, Apple has made a strategic decision that focuses on long-term value. For you as a user, this means improved features and seamless integration of advanced AI technology into your everyday devices. Stay tuned for further developments and enjoy the new possibilities that iOS 18 offers you. Are you looking for new accessories? Then take a look in our Amazon Storefront Stop by – there you'll find numerous products from leading providers, including those for HomeKit and more! (Image: Apple)

  • Apple Intelligence: The New Era of Personal AI
  • iOS 18: Limited preview of Apple Intelligence with waiting list
  • All about iOS 18: ChatGPT integration explained
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Milan Jovicic

Milan Jovicic

Milan founded Apfelpatient in 2016 and has been responsible for all editorial content since 2018 – news, rumors, how-to guides and product reviews. Here, Apple devices aren't review units kept for two weeks, they're everyday tools: from iPhone to MacBook Pro, MacBook Air and iMac all the way to Apple Vision Pro, at least one device from every product category is in daily use, many of them replaced every year. Every menu path in a guide is checked on the device before it goes live.

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