At the WWDC 2024 event on Tuesday, Apple announced that it will integrate OpenAI’s ChatGPT technology into its iPhone, iPad and Mac devices. Contrary to popular belief, this integration was realized without payment between the two technology giants.
Apple did not pay OpenAI; So how will OpenAI monetize the ChatGPT integration?
Apple announced at WWDC that ChatGPT will be added to iPhone, iPad and Mac devices. Users will be able to access typing tools, document reading and image creation without switching apps. ChatGPT will also be integrated with Siri and users will have the option to disable this integration.
Under the agreement, Apple will not pay OpenAI. Instead, the deal is expected to create value for both parties.
Apple will gain a significant advantage by offering its users an advanced AI chatbot. OpenAI will gain access to Apple’s large user base. As you know, user data is a very valuable commodity right now.
The integration could encourage some users to upgrade to paid versions of ChatGPT, which is available for as little as $20 per month. This is another revenue stream.
Apple announced the official ChatGPT integration for Siri at WWDC 2024! Let's take a look at how it works.
Bernstein analysts said in a post-WWDC statement that revenue sharing could benefit both companies, but that a decline in traditional search queries could negatively impact Apple’s return on investment.
Apple is also in talks with other AI models for similar deals. At WWDC, Apple’s top executive Craig Federighi indicated that they were seeking a deal to use Google’s Gemini AI model. In March, sources told Bloomberg that Apple was in talks with Anthropic about a potential chatbot deal.
In short, Apple will improve the user experience by offering advanced AI features, while OpenAI will have the opportunity to further develop and disseminate its technology by reaching a large user base. What do you think? Please don’t forget to share your thoughts with us in the comments section below.
