No one is paying anyone in the OpenAI and Apple deal
It looks like the long-awaited partnership between OpenAI and Apple that was announced at the latter’s developer conference last week isn’t expected to generate revenue for either company in the near-term. Apparently no money is changing hands in the deal either, Bloomberg reports.
In exchange for letting Apple use ChatGPT technology on its iPhones, Apple is giving OpenAI a big pile of...exposure. “Apple believes pushing OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments,” Bloomberg wrote, citing people familiar with the matter.
Apple gets to show off flashy new AI technology on its phones, hopefully driving more new iPhone sales. It’s less clear what OpenAI gets. Presumably both OpenAI and Apple could make money if users convert to a paid version of ChatGPT or split money from monetizing the chatbot. But for now it seems like this “deal” will only drive more costs to OpenAI.
In exchange for letting Apple use ChatGPT technology on its iPhones, Apple is giving OpenAI a big pile of...exposure. “Apple believes pushing OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments,” Bloomberg wrote, citing people familiar with the matter.
Apple gets to show off flashy new AI technology on its phones, hopefully driving more new iPhone sales. It’s less clear what OpenAI gets. Presumably both OpenAI and Apple could make money if users convert to a paid version of ChatGPT or split money from monetizing the chatbot. But for now it seems like this “deal” will only drive more costs to OpenAI.
