OpenAI / Apple / Benj Edwards
On Monday, Apple introduced it will be integrating OpenAI’s ChatGPT AI assistant into upcoming variations of its iPhone, iPad, and Mac working techniques. It paves the best way for future third-party AI mannequin integrations, however given Google’s multi-billion-dollar cope with Apple for preferential internet search, the OpenAI announcement impressed hypothesis about who’s paying whom. In line with a Bloomberg report revealed Wednesday, Apple considers ChatGPT’s placement on its gadgets as compensation sufficient.
“Apple isn’t paying OpenAI as a part of the partnership,” writes Bloomberg reporter Mark Gurman, citing folks conversant in the matter who want to stay nameless. “As a substitute, Apple believes pushing OpenAI’s model and expertise to lots of of thousands and thousands of its gadgets is of equal or better worth than financial funds.”
The Bloomberg report states that neither firm expects the settlement to generate significant income within the quick time period, and in reality, the partnership might burn extra cash for OpenAI, as a result of it pays Microsoft to host ChatGPT’s capabilities on its Azure cloud. Nevertheless, OpenAI may benefit by changing free customers to paid subscriptions, and Apple doubtlessly advantages by offering straightforward, built-in entry to ChatGPT throughout a time when its personal in-house LLMs are nonetheless catching up.
And there is one other angle at play. At the moment, OpenAI provides subscriptions (ChatGPT Plus, Enterprise, Group) that unlock further options. If customers subscribe to OpenAI by way of the ChatGPT app on an Apple machine, the method will reportedly use Apple’s cost platform, which can give Apple a big lower of the income. In line with the report, Apple hopes to barter further revenue-sharing offers with AI distributors sooner or later.
Why OpenAI
The rise of ChatGPT within the public eye over the previous 18 months has made OpenAI an influence participant within the tech business, permitting it to strike offers with publishers for AI coaching content material—and guarantee continued help from Microsoft within the type of investments that commerce important funding and compute for entry to OpenAI’s giant language mannequin (LLM) expertise like GPT-4.
Nonetheless, Apple’s selection of ChatGPT as Apple’s first exterior AI integration has led to widespread misunderstanding, particularly since Apple buried the lede about its personal in-house LLM expertise that powers its new “Apple Intelligence” platform.
On Apple’s half, CEO Tim Cook dinner advised The Washington Publish that it selected OpenAI as its first third-party AI associate as a result of he thinks the corporate controls the main LLM expertise in the mean time: “I believe they’re a pioneer within the space, and in the present day they’ve the most effective mannequin,” he mentioned. “We’re integrating with different folks as properly. However they’re first, and I believe in the present day it’s as a result of they’re finest.”
Apple’s selection additionally brings threat. OpenAI’s report is not spotless, racking up a string of public controversies over the previous month that embrace an accusation from actress Scarlett Johansson that the corporate deliberately imitated her voice, resignations from a key scientist and security personnel, the revelation of a restrictive NDA for ex-employees that prevented public criticism, and accusations in opposition to OpenAI CEO Sam Altman of “psychological abuse” associated by a former member of the OpenAI board.
In the meantime, critics of privateness points associated to gathering information for coaching AI fashions—together with OpenAI foe Elon Musk, who took to X on Monday to unfold misconceptions about how the ChatGPT integration would possibly work—additionally frightened that the Apple-OpenAI deal would possibly expose private information to the AI firm, though each firms strongly deny that would be the case.
Wanting forward, Apple’s cope with OpenAI isn’t unique, and the corporate is already in talks to supply Google’s Gemini chatbot as a further choice later this yr. Apple has additionally reportedly held talks with Anthropic (maker of Claude 3) as a possible chatbot associate, signaling its intention to offer customers with a variety of AI providers, very like how the corporate provides numerous search engine choices in Safari.
