Apple Nears Deal with OpenAI to Enhance iPhone’s AI Capabilities

Apple Nears Deal with OpenAI to Enhance iPhone’s AI Capabilities

Apple is reportedly close to sealing a deal with OpenAI to integrate ChatGPT into its upcoming iOS release, according to Bloomberg.

Advanced AI Integration for iOS 18

For months, Apple has been in discussions with various AI industry leaders, including Google, Anthropic, and OpenAI. With the launch of iOS 18 scheduled for next month, Apple aims to significantly enhance its AI features to compete with rivals like Samsung and Huawei, who have already introduced AI functionalities.

Bloomberg's sources indicate that OpenAI is on the verge of finalizing a deal to become the first AI model accessible to iPhone and MacBook users. Although Apple is still negotiating with Google, those talks have not yet resulted in a new agreement. Google’s AI technology already supports some of Apple's key competitors, such as the Samsung Galaxy S24 series.

Balancing Privacy with Powerful AI

For Apple, effectively integrating AI is crucial. The company's reputation for prioritizing privacy could be challenged by AI technology. To address this, Apple plans to perform as much data processing on-device as possible, necessitating powerful processors capable of handling AI computations. The release of the M4 chip, which powers the new iPad Pro, marks the first step in this direction. The upcoming iPhone 16 will be the first to feature AI-focused chips.


According to Bloomberg, Apple’s AI strategy is dual-faceted: on-device and cloud-powered large language model (LLM) features will utilize in-house technology, while more advanced features, like chatbots and text-to-image generators, will rely on OpenAI, Google, and Anthropic, the latter two depending on ongoing negotiations.


“Apple isn’t building its own chatbot but knows the market wants it, so it’s going elsewhere for it. It’s the same playbook as search,” said Bloomberg’s Mark Burman, citing sources within Apple.


In the realm of search, Google reportedly pays $18 billion annually to remain the default search engine for Apple devices. This mutually beneficial arrangement also acts as a peace treaty, as Microsoft CEO Satya Nadella mentioned in court last year that Apple fears potential sabotage from Google if the iPhone maker decides to opt-out.


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