Open AI and Apple’s latest partnership deal has baffled market analysts as their deal does not disclose any information on the financial aspects of the deal. It is speculated that money is not a major factor in their partnership.
According to Bloomberg’s analysis, the partnership could become costly for OpenAI, which needs to pay Microsoft Corp. to host ChatGPT on that company’s Azure cloud-computing systems. The more people use ChatGPT, the more OpenAI’s expenses rise. And the integration into iOS devices — while optional for users and limited to the company’s recent products — threatens to add significantly to the computing budget.
An unidentified source confirmed that Apple isn’t paying OpenAI as part of the deal. Instead, the tech company believes pushing OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments, the source said. Apple and OpenAI could still make money from the users from OpenAI’s $20 a month subscription plan. Users will obtain a subscription using Apple’s payment platform, traditionally providing the iPhone maker a cut.
Eventually, Apple aims to make money from AI by striking revenue-sharing agreements whereby it gets a cut from AI partners that monetize chatbots on iOS platforms, according to the people.
Also Read: Hear Roger Fedrer’s memorable speech at Dartmouth college
Apple and OpenAI partnership
Four days ago, the tech company and OpenAI announced a partnership to bring ChatGPT to iOS, macOS and ipadOS devices. ChatGPT would enable imaging and documenting understanding – without having to use different tools, making the process less cumbersome.
Apple’s Siri and Writing tools will utilize ChatGPT’s intelligence to answer user’s questions. Privacy protections are built in when accessing ChatGPT within Siri and Writing Tools—requests are not stored by OpenAI, and users’ IP addresses are obscured. Users can also choose to connect their ChatGPT account, which means their data preferences will apply under ChatGPT’s policies.
Apple users can avail the benefits of ChatGPT without the need to create an account, and ChatGPT subscribers can connect their accounts and access paid features right from these experiences.
