Apple will pay OpenAI to bring ChatGPT to iPhone

What you need to know

Apple announced a new partnership with OpenAI to bring ChatGPT to iPhone.
A new report suggests that Apple will pay OpenAI to distribute and display its brand on hundreds of millions of its devices.
Apple is the new kid on the AI block and unlike its competitors, the company promises to protect user privacy and security.

At the just-concluded WWDC 2024, Apple unveiled its new AI strategy in its technology stack to compete with key industry players like Microsoft. But beyond deep integration of AI technology on its devices, Apple announced a new partnership with OpenAI to bring ChatGPT to iPhone.

However, the company apparently exercised restraint and did not reveal additional information about its new partnership with the creator of ChatGPT. It is unclear whether the partnership will be mutually beneficial. However, according to Bloomberg’s Mark Gurman, Apple-OpenAI will not be beneficial to either side.

According to sources with knowledge of the deal, OpenAI’s ChatGPT will be deeply integrated with Siri, marking a major overhaul. The tool will also be used to support a new set of artificial intelligence features. While you might expect that such a deal would set Apple back an exorbitant amount of money, that’s not the case.

Interestingly, Apple will give OpenAI something that will be better than monetary value – pushing its brand onto hundreds of millions of its devices. On the other hand, Apple potentially has a lot to gain from this new partnership. Right now, Apple has taken back the world’s most valuable corporate crown from Microsoft, days after announcing its artificial intelligence strategy.

For starters, the next-generation AI features coming to iPhone via the iOS 18 update will only be available on iPhone 15 Pro or later. This means that users of older iPhones will have to upgrade to access these features – a smart move that could help with depressed iPhone sales (particularly in the Chinese market).

It is still unclear whether OpenAI will seek alternative sources of remuneration to make the most of its deal with Apple. For example, tying some of its more sophisticated AI features to its $20 subscription service, ChatGPT Plus.

In retrospect, OpenAI launched ChatGPT exclusively for macOS, bypassing Windows, despite Microsoft’s multi-billion dollar investment. The creator of ChatGPT explained that it prioritized the location of its users, potentially indicating that the majority of its users were on Mac computers rather than Windows devices.

Does Apple Intelligence support data protection?

Apple Intelligence

(Image: Apple)

Apple is clearly a latecomer to the AI landscape, which can be attributed to security and privacy concerns surrounding the technology. However, Apple has apparently found a way to get around these problems and continues to use cutting-edge technology. The answer is simple: Private Cloud Compute.

Apple Intelligence mainly runs on the device. However, complex tasks that require more processing power will use Apple Compute’s private cloud. The company says protecting user data is one of its top priorities. Therefore, user data when using cloud services is end-to-end encrypted. Additionally, it will not be accessible to third parties or available for training AI models.

Will Gemini and Claude be available on iPhone?

Google Gemini image

(Image source: Google)

Despite signing a deal with OpenAI to bring ChatGPT to the iPhone, Apple is reportedly looking at alternative options with Google and Anthropic. If these deals come to fruition, Gemini AI and Claude could eventually come to the iPhone as well.