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Apple and OpenAI make good money from AI, but not from each other

Apple and OpenAI make good money from AI, but not from each other

Apple will not compensate OpenAI for bringing ChatGPT to the iPhone. Instead, it will compensate OpenAI by bringing the AI assistant to millions of users.

Earlier this week, Apple announced how it is bringing AI to its users. For the most part, Apple is taking care of its own with Apple Intelligence. The well-known voice assistant Siri is being pushed forward as an AI assistant that will be able to handle both voice and text commands. Should Siri be left with the answer, the assistant can call on the knowledge of GPT-4o. That is possible as the iPhone maker also announced a partnership with OpenAI.

Also read: Apple WWDC24: AI equals Apple Intelligence and partnership with OpenAI

It remained quiet about the financial details of the deal. Now Bloomberg reports that there simply aren’t details to announce. Apple decided that it is sufficiently valuable to bring the AI assistant to so many users worldwide. OpenAI has no assurance of additional revenue from Apple users either. The technology will be available to iPhone, iPad and Mac users for free and without an account. So, for the AI company, there are only costs to the deal with certainty. Those costs are incurred to run the model on Azure’s systems; more AI searches also mean more of those systems are needed.

Apple most valuable company

The AI announcements already scored on the stock market. Shares rose a whopping four percent, reaching their highest ever ($215.04 per share). The jump made Apple the most valuable company in the world, worth $3.29 trillion. That included a leap past Microsoft, which is currently worth $3.24 trillion.

The success of AI also provides bright expectations for OpenAI. The company is on its way to annual sales of $3.4 billion. Bloomberg reports that OpenAI CEO Sam Altman reportedly told this to his staff. The figures also give an insight into the revenue the company generates by offering AI services on hardware products from other vendors, such as GPT-4o on Apple. Offering LLMs on Microsoft services would generate $200 million.