Apple didn't pay OpenAI for ChatGPT in iOS 18 because "advertising is more expensive than money"

On Monday at WWDC 2024, Apple finally confirmed rumors of a potential partnership with OpenAI and announced the integration of ChatGPT into iOS 18. Now details of the deal have emerged.

According to Mark Gurman from Bloomberg, "the partnership between Apple and OpenAI is not expected to generate significant revenue — at least initially," and the contract itself does not involve payment of money from either party.

In fact, Apple believes that the integration with iOS 18 will provide OpenAI with "equal or even greater value" compared to money, considering the brand promotion and technologies on hundreds of millions of its devices. The company's goal is to eventually reach revenue-sharing agreements with artificial intelligence companies — under this arrangement, Apple will receive a "share from AI partners who monetize results in chatbots on its platforms," Gurman writes.

The integration of ChatGPT into iOS 18, iPadOS 18, and macOS Sequoia will be available for free to users who choose to take advantage of this opportunity, and ChatGPT Plus subscribers will be able to log into their accounts to unlock additional features.

Apple says that the new AI features will work for you in programs: manage notifications, write or summarize text in emails (with tone selection), or transfer tasks "from app to app" (for example, you can ask AI to play the podcast that was sent to you in a messenger).

The company notes that all AI actions will be processed on the device to maintain privacy, however, you will need an A17 Pro or M series chip to take advantage of the update.