Apple and OpenAI made an unbelievable deal to bring ChatGPT to the iPhone

At WWDC Apple unveiled its impending iOS 18 update schedule to be rolled out later this year will feature integration with OpenAI's ChatGPT, and as you would probably imagine, the deal between the two companies would have included millions of dollars. However, that reportedly isn't the case.

Known Apple insider and Bloomberg reporter Mark Gurmann has published a new article explaining the deal between OpenAI and Apple for integrating ChatGPT into the next version of Apple's operating system didn't involve a single penny of money. How? Apple simply views giving OpenAI access to its customer base as a commodity.

According to anonymous sources talking to Gurmann, "Apple believes pushing OpenAI's brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments." In fact, Apple will likely benefit monetarily when it rolls out generative AI capabilities to consumers, which will likely cost them a payment in some form. Gurmann also points out that as more people use ChatGPT the more OpenAI's expenses increase as it pays Microsoft to host the AI-powered service on its Azure servers.

It's likely OpenAI is hoping ChatGPT being exposed to billions of users through Apple's devices will result in a portion of users signing up for OpenAI's premium subscription services.

Regardless, it's interesting that Apple didn't pay a single cent for the world's most popular AI-powered tool. It just shows the power Apple has over the market.