July 16, 2024
Report: Apple isn’t paying OpenAI for ChatGPT integration into OSes
The OpenAI and Apple logos together.

OpenAI / Apple / Benj Edwards

On Monday, Apple introduced it might be integrating OpenAI’s ChatGPT AI assistant into upcoming variations of its iPhone, iPad, and Mac working programs. It paves the best way for future third-party AI mannequin integrations, however given Google’s multi-billion-dollar take care of Apple for preferential net search, the OpenAI announcement impressed hypothesis about who’s paying whom. In response to a Bloomberg report printed Wednesday, Apple considers ChatGPT’s placement on its units as compensation sufficient.

“Apple isn’t paying OpenAI as a part of the partnership,” writes Bloomberg reporter Mark Gurman, citing folks acquainted with the matter who want to stay nameless. “As an alternative, Apple believes pushing OpenAI’s model and know-how to a whole lot of tens of millions of its units is of equal or higher worth than financial funds.”

The Bloomberg report states that neither firm expects the settlement to generate significant income within the quick time period, and actually, the partnership might burn more money for OpenAI, as a result of it pays Microsoft to host ChatGPT’s capabilities on its Azure cloud. Nevertheless, OpenAI may benefit by changing free customers to paid subscriptions, and Apple probably advantages by offering simple, built-in entry to ChatGPT throughout a time when its personal in-house LLMs are nonetheless catching up.

And there is one other angle at play. At present, OpenAI presents subscriptions (ChatGPT Plus, Enterprise, Crew) that unlock extra options. If customers subscribe to OpenAI by the ChatGPT app on an Apple system, the method will reportedly use Apple’s fee platform, which can give Apple a big lower of the income. In response to the report, Apple hopes to barter extra revenue-sharing offers with AI distributors sooner or later.

Why OpenAI

The rise of ChatGPT within the public eye over the previous 18 months has made OpenAI an influence participant within the tech trade, permitting it to strike offers with publishers for AI coaching content material—and guarantee continued assist from Microsoft within the type of investments that commerce important funding and compute for entry to OpenAI’s massive language mannequin (LLM) know-how like GPT-4.

Nonetheless, Apple’s alternative of ChatGPT as Apple’s first exterior AI integration has led to widespread misunderstanding, particularly since Apple buried the lede about its personal in-house LLM know-how that powers its new “Apple Intelligence” platform.

On Apple’s half, CEO Tim Prepare dinner told The Washington Post that it selected OpenAI as its first third-party AI companion as a result of he thinks the corporate controls the main LLM know-how in the intervening time: “I believe they’re a pioneer within the space, and right now they’ve the very best mannequin,” he stated. “We’re integrating with different folks as nicely. However they’re first, and I believe right now it’s as a result of they’re finest.”

Apple’s alternative additionally brings danger. OpenAI’s report is not spotless, racking up a string of public controversies over the previous month that embody an accusation from actress Scarlett Johansson that the corporate deliberately imitated her voice, resignations from a key scientist and security personnel, the revelation of a restrictive NDA for ex-employees that prevented public criticism, and accusations in opposition to OpenAI CEO Sam Altman of “psychological abuse” associated by a former member of the OpenAI board.

In the meantime, critics of privateness points associated to gathering knowledge for coaching AI fashions—together with OpenAI foe Elon Musk, who took to X on Monday to unfold misconceptions about how the ChatGPT integration may work—additionally fearful that the Apple-OpenAI deal may expose private knowledge to the AI firm, though each corporations strongly deny that would be the case.

Trying forward, Apple’s take care of OpenAI will not be unique, and the corporate is already in talks to supply Google’s Gemini chatbot as a further choice later this yr. Apple has additionally reportedly held talks with Anthropic (maker of Claude 3) as a possible chatbot companion, signaling its intention to offer customers with a spread of AI companies, very similar to how the corporate presents varied search engine choices in Safari.