Apple officially confirmed its deal with OpenAI at WWDC 2024 to bring ChatGPT integration with iOS 18 as part of Apple Intelligence and AI push. While the partnership’s financial terms weren’t discussed on-stage, Bloomberg‘s Mark Gurman claims that neither company is paying the other for the time being.
In a new report, it is stated that Apple isn’t paying OpenAI to integrate ChatGPT into iOS 18 or vice versa as the feature isn’t expected to generate any substantial amount of revenue over the short term. Instead, Apple is described as paying OpenAI in the form of “exposure.” Both companies hope that users who get a taste of the iOS 18 ChatGPT integration will subscribe to ChatGPT Plus, OpenAI’s paid service that unlocks the chatbot’s most advanced capabilities.
Still, Apple hopes that its iOS 18 ChatGPT integration will turn into a revenue stream down the line, much like its deal with Google as Safari’s default search engine. Apple could develop a revenue-sharing agreement with OpenAI and future AI providers, allowing the Cupertino company to take a cut if its AI partners monetize results from chatbots running on Apple devices. In a sense, Apple is already generating revenue this way from users who subscribe to ChatGPT Plus through the ChatGPT app by collecting App Store commissions.
For now, Apple Intelligence isn’t expected to cost the company a lot of money, save for the initial research and development expenditure. As discussed during WWDC 2024, Apple Intelligence runs mostly on-device with some processing done on Apple silicon-equipped data centers. However, server-running costs are expected to increase down the line when Apple Intelligence is offered in more languages and regions.
The iOS 18 ChatGPT integration is one of many steps Apple is taking to bolster AI capabilities on the iPhone. As teased by the company’s software chief Craig Federighi, Apple is eager to get more third-party AI providers integrated as part of iOS 18, with Federighi specifically pointing out Google Gemini as a potential candidate.
Apple Intelligence and iOS 18 ChatGPT integration are expected to be available this fall once iOS 18 launches to the public.
