Who wants money? Apple is paying OpenAI in publicity for ChatGPT integration


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Aamir Siddiqui / Android Authority

TL;DR

  • Apple introduced an upcoming ChatGPT integration to enhance varied features of Siri, iOS, and macOS.
  • A brand new report means that Apple gained’t pay OpenAI for this integration.
  • Apple and OpenAI stand to profit from elevated performance and wider distribution respectively as a substitute.

Apple introduced new ChatGPT integrations for the iPhone, Mac, and Siri at WWDC 2024 earlier this week. Nevertheless, the corporate didn’t disclose any specifics about its take care of OpenAI. As a substitute, more often than not on stage was spent assuring customers they might have full management over what data is shared with the chatbot. Not like the ChatGPT smartphone app, for instance, the Apple integration gained’t retailer conversations and even customers’ IP addresses.

Now, it seems that ChatGPT creator OpenAI isn’t getting paid to course of queries on Apple’s gadgets both. Based on Bloomberg, sources aware of the deal say the partnership isn’t anticipated to make both firm a lot cash.

As a substitute, Apple believes that the publicity generated by the ChatGPT integration is price greater than a one-time or recurring fee to OpenAI. However, the iPhone maker not directly advantages by providing a greater Siri expertise to customers. Nevertheless, that doesn’t imply neither firm stands to profit in financial phrases.

Apple will use its personal “basis” fashions to energy nearly all of upcoming AI options throughout its platforms. And in accordance with lately revealed benchmarks, the server AI mannequin is about pretty much as good and even barely higher than GPT-3.5 — the bottom choice obtainable to all OpenAI customers. Nevertheless, Apple’s greatest mannequin pales compared to GPT-4o, which is the present most suitable choice obtainable to ChatGPT Plus customers.

When the overhauled Siri is launched later this yr, it is going to provide to ahead sure person inquiries to ChatGPT. The hope is probably going that sufficient customers will see the utility of ChatGPT’s greater response high quality and find yourself paying for limitless entry to GPT-4o and different paid options. The subscription prices $20 per person per thirty days.

Moreover, if a person decides to improve to ChatGPT Plus by way of Apple’s fee processing system, the corporate will get a lower of the acquisition.

Apple and OpenAI each stand to achieve from ChatGPT Plus upgrades.

ChatGPT runs on Microsoft’s Azure cloud platform, the place OpenAI seemingly enjoys discounted compute charges. With over $13 billion in cumulative funding thus far, Microsoft is the startup’s largest stakeholder.

Nonetheless, even probably the most conservative estimates say that each single ChatGPT question prices OpenAI just a few cents’ price of computational energy. The precise quantity will depend on the variety of tokens generated by the chatbot, which loosely corresponds to output size. We all know that ChatGPT’s smartphone apps are designed to ship shorter responses, so the corporate might use the identical technique to hold prices below management when the iPhone integration goes reside. And by chance, solely a subset of Siri queries get handed on to ChatGPT, which ought to additional alleviate the load.

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