Apple won’t pay OpenAI for using ChatGPT: Here’s why

Updated on 14-Jun-2024

If you have been on the internet in the last week, you must have come across headlines about Apple’s announcement of integrating OpenAI’s ChatGPT in their iPhones, Macs, and iPads at WWDC 2024. Amongst all the other information that has surfaced about this collaboration, the latest comes in the form of how Apple is going to pay OpenAI for using its AI model in its devices, and it is not what you think it would be.

During WWDC 2024, Apple announced Apple Intelligence would use OpenAI’s ChatGPT along with an improved Siri and a host of other AI-enabled features to enhance the overall user experience. Limited to select devices for now, Apple Intelligence would be made available to the public with iOS 18, iPadOS 18, and MacOS Sequoia. We covered Apple Intelligence in detail and covered the privacy concerns around this new addition as well. With news reports surfacing all over the internet, Bloomberg’s Mark Gurman has published information about how Apple is going to pay OpenAI for using their services in the form of distribution and not cash.

Also Read: What is Apple Intelligence? Here’s everything you need to know

Apple believes exposure to millions of people, better for OpenAI than money, according to Gurman

Gurman, in his report, highlighted, “according to people briefed on the matter, the partnership isn’t expected to generate meaningful revenue for either party — at least at the outset.” This means that there will be no monetary exchange between the two entities to begin with. Further in his report, Gurman stated that the addition of ChatGPT to enhance the functionality of Siri and its overall user experience, increasing its reach to millions of users worldwide, would be a better value proposition than just a monetary exchange.

The announcements made by Apple at WWDC 2024 came on the back of months of anticipation. While these announcements promise a bright future for users of Apple products, only time will tell how these affect people’s workflows and day-to-day use in real life, and given the limitation of the availability of these features, it will be interesting to see how many people hop on to the Apple Intelligence bandwagon in the coming days. 

Satvik Pandey

Satvik Pandey, is a self-professed Steve Jobs (not Apple) fanboy, a science & tech writer, and a sports addict. At Digit, he works as a Deputy Features Editor, and manages the daily functioning of the magazine. He also reviews audio-products (speakers, headphones, soundbars, etc.), smartwatches, projectors, and everything else that he can get his hands on. A media and communications graduate, Satvik is also an avid shutterbug, and when he's not working or gaming, he can be found fiddling with any camera he can get his hands on and helping produce videos – which means he spends an awful amount of time in our studio. His game of choice is Counter-Strike, and he's still attempting to turn pro. He can talk your ear off about the game, and we'd strongly advise you to steer clear of the topic unless you too are a CS junkie.

Connect On :