Apple is compensating OpenAI with exposure instead of cash

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Apple is paying OpenAI with exposure, not cash

Apple and OpenAI are collaborating to incorporate optional ChatGPT functionality into Apple’s ecosystem, without any financial transactions between the two parties at the moment.

Apple and OpenAI have formed a mutual partnership

While Google pays Apple a substantial amount to remain the default search engine on iPhones, no such financial arrangement exists between Apple and OpenAI for their partnership.

As reported by Bloomberg, Apple is not compensating OpenAI, and vice versa. The current agreement centers around Apple promoting OpenAI’s ChatGPT to its user base, creating a mutually beneficial setup.

Although the current arrangement is based on mutual benefits, it may evolve into a revenue-sharing agreement in the future. Apple is in discussions with other LLM providers, such as Google, to offer customers more choices, potentially leading to Apple earning a percentage of any monetization options from third-party LLMs.

During WWDC 2024, Apple unveiled AI features under the “Apple Intelligence” umbrella. These in-house models are created by Apple and communicate with servers via a secure system called Apple Cloud Compute.

In addition to Apple’s server-side LLMs, users have the option to access ChatGPT from OpenAI via Siri and other tools on a per-request basis.

Each ChatGPT request must be authorized by the user, with OpenAI ensuring that they do not collect data about Apple user requests. While the feature is available for free without an account, premium ChatGPT users can link their accounts for advanced functionalities.

The beta launch of Apple Intelligence and ChatGPT integrations is scheduled for the fall, with Apple planning a gradual rollout to users.