Apple CEO  Tim Cook and his top deputies announced their partnership with OpenAI earlier this week to integrate ChatGPT into the iPhone, iPad and Mac (Image: X @ AppleCEOTimCook)

Apple CEO  Tim Cook and his top deputies announced their partnership with OpenAI earlier this week to integrate ChatGPT into the iPhone, iPad and Mac, but they didn’t disclose the financial terms further.

The company is paying the other as part of a tight collaboration that has potential monetary benefits for both. But, according to people briefed in this regard, the partnership isn’t anticipated to generate meaningful revenue for either party even at the beginning.

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This includes integrating ChatGPT, a digital assistant that responds to information requests, into Apple’s Siri and new writing tools. Apple isn’t paying OpenAI as part of this partnership, who asked not to be identified because the deal terms are confidential.  Apple believes pushing OpenAI’s brand and technology to its all devices is equal or holds greater value than the monetary benefits, in lieu, according to the reports.

Also, Apple extended their gratitude to OpenAI, which gets the benefit of offering an advanced chatbot to consumers potentially driving users to spend more time on devices or even splurge on devices’ upgrades. But even if money wasn’t a major element in the Apple-OpenAI deal, it was expected to pay later as remuneration.

Apple products would come with free ChatGPT but OpenAI and Apple could still make money by converting free users to paid accounts. OpenAI’s subscription plans start at $20 a month, a payment that covers extra features like the ability to evaluate data and generate different images as required. AI services on Apple products won’t be as costly to deliver because most of them are handled on the devices, rather than through cloud computing. Still, the company is ramping up its data centre operations to support new online AI services to handle more impactful tasks.
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As per the reports, Apple’s collaboration with OpenAI won’t stand apart, as the iPhone maker is already discussing offering Google’s Gemini chatbot as an additional option. That agreement should be in place in the future.