AI in practice

Apple sees ChatGPT integration as more valuable than cash in deal with OpenAI, sources say

Matthias Bastian
Apple integrates OpenAI's ChatGPT into iPhone, iPad and Mac without paying for it directly, Bloomberg insiders report.

Apple is integrating OpenAI's ChatGPT into the iPhone, iPad and Mac without paying for it directly, Bloomberg reports. Instead, Apple sees the distribution of the technology across hundreds of millions of devices as equally or more valuable than a monetary payment. The integration is part of a broader AI push by Apple, which also includes its own AI capabilities under the "Apple Intelligence" brand. Eventually, the partnership could be expensive for OpenAI due to hosting costs on Microsoft Azure. However, both companies could make money by converting free users to OpenAI subscriptions, with Apple taking a cut. Apple is also pursuing deals with Google and Anthropic to offer multiple chatbots. In China, where ChatGPT and Gemini are blocked, Apple is considering partnerships with Baidu and Alibaba.

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