Home Apple Why Apple Partnership with OpenAI Involves Zero Cash but Infinite Benefits?

Why Apple Partnership with OpenAI Involves Zero Cash but Infinite Benefits?

0
Reading Time: 2 minutes read

What really sparked interest in the new partnership between Apple and OpenAI was that no money was to be exchanged between them. The deal, to bring ChatGPT into Siri and other Apple apps, could be reasoned in terms of mass distribution rather than money changing hands.

According to reports by Bloomberg‘s Mark Gurman, Apple doesn’t pay OpenAI for hosting ChatGPT on its devices, and OpenAI itself isn’t paying Apple for access to those users. How neither company pays the other signals that Apple views promotion of OpenAI’s tech on hundreds of millions of devices as tantamount to, if not more, valuable than financial payments alone. The partnership plans to offer advanced generative AI directly to consumers while keeping investors satisfied—it’s a win-win situation, since Apple’s stock prices surged after the announcement at WWDC.

Through this collaboration, OpenAI benefits by gaining exposure to billions of Apple devices, and Apple will earn from the new innovative features in artificial intelligence it gives users. This deal, however, brought possible cost implications to OpenAI as it caters to Microsoft for hosting ChatGPT on Azure cloud servers. Since ChatGPT is embedded into Apple devices, there is a corresponding increase in computing expenses on the part of OpenAI.

Furthermore, Apple is in discussions with other AI companies, including Google and Anthropic, over partnership opportunities to offer other chatbot choices for consumers. The company is said to be negotiating revenue-sharing options for providing several choices of chatbots in preparation for making up for lost earnings from search engines with the monetization prospects that chatbot services bring.

The introduction of Apple Intelligence—the company’s AI strategy—and the OpenAI partnership are critical steps, with further language support planned and a possible collaboration with Baidu and Alibaba for chatbot features in regions. Even though no money will exchange hands, it is a strategic step from both Apple and OpenAI toward better AI capabilities and user experiences on Apple devices.

NO COMMENTS

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Exit mobile version