Apple most likely to 'pay' OpenAI for ChatGPT through distribution, not cash

INSUBCONTINENT EXCLUSIVE:
Chief Executive Officer Tim Cook and his top deputies this week unveiled a landmark arrangement with OpenAI to integrate ChatGPT into the
tight collaboration that has potentially lasting monetary benefits for both
the outset. The arrangement includes weaving ChatGPT, a digital assistant that responds in plain terms to information requests, into
potentially enticing users to spend more time on devices or even splash out on upgrades. Representatives of Apple and OpenAI declined to
comment. The pact with OpenAI is part of a broader push by Apple into AI
The iPhone maker laid out the plans during a keynote address at its annual Worldwide Developers Conference, showing off AI features for the
iPhone, iPad and Mac
for OpenAI, which needs to pay Microsoft Corp
converting free users to paid accounts
That agreement should be in place later this year. Apple has also held talks with Anthropic as a potential chatbot partner, people familiar
with the matter told Bloomberg earlier this year
browser. Eventually, Apple aims to make money from AI by striking revenue-sharing agreements whereby it gets a cut from AI partners that
monetise results in chatbots on Apple platforms, according to the people
The company believes that AI could chip away at the billions of dollars it gets from its Google search deal because users will favor
chatbots and other tools over search engines
most of them are handled on the devices themselves, rather than through cloud computing
Still, the company is ramping up its data center operations to support new online AI services that handle more advanced tasks. To make
Apple Intelligence a success, the company will need to expand it to other languages and countries
has yet to reach a deal with a local Chinese provider to handle chatbot features, but has been considering an arrangement with companies
such as Baidu Inc
and Alibaba Group Holding Ltd., according to the people
For now, Apple Intelligence is only available in American English, but the company is aiming to support more languages next year.First
Published: Jun 13 2024 | 6:57 AMIST