Apple has reopened discussions with OpenAI about potentially using their generative AI technologies on the iPhone with the next iOS 18 operating system release later this year. They have begun negotiating terms of a possible agreement but have yet to reach a final decision.
Highlights:
- Apple reopened talks with OpenAI to potentially use their tools on the iPhone with the next iOS 18 update.
- Apple is also in parallel discussions with Google about licensing its Gemini chatbot.
- Apple is yet to decide which AI partners to use, and may potentially reach deals with both OpenAI and Google or choose another provider entirely.
This news reported by Bloomberg marks a renewal of dialogue between Apple and OpenAI after earlier talks earlier this year had minimal progress. Apple is also in parallel discussions with Google about licensing their AI-powered Gemini.
Last year, Apple CEO Tim Cook acknowledged using ChatGPT personally but noted issues that needed addressing, promising thoughtful integration of AI across Apple’s platforms.
In February 2024, Cook delivered a speech at the opening of the company’s fourth-quarter earnings call, saying the following about Apple’s plans to dive into AI.
“As we look ahead, we will continue to invest in these and other technologies that will shape the future. That includes artificial intelligence, where we continue to spend a tremendous amount of time and effort.”
Apple is yet to decide which AI partners to use, and may potentially reach deals with both OpenAI and Google or choose another provider entirely. Representatives from the companies declined to comment.
While iOS 18 will include new features based on Apple’s own large language model (LLM), the company has been seeking external partners to provide a chatbot experience akin to OpenAI’s ChatGPT, as previously reported by Bloomberg.
This latest development comes ahead of Apple’s Worldwide Developers Conference in around a month, where they plan to unveil new AI software and services positioned as deeply integrated into Apple devices with enhanced privacy protections compared to rivals.
Earlier, Apple had unveiled its intentions to introduce a new Mac lineup powered by the M4 processors, with a strong emphasis on AI capabilities. Despite facing intense regulatory scrutiny and an antitrust lawsuit filed against the company by the U.S. Department of Justice in March, this announcement led to a 4% surge in Apple’s stock price.
The market seemed to respond positively to Apple’s forthcoming AI-focused Mac products, shrugging off the legal challenges and regulatory concerns surrounding the tech giant.
By partnering with external providers, Apple could accelerate its AI/chatbot capabilities while potentially reducing liability risks by outsourcing the generative AI components.
Conclusion
Apple aims to integrate advanced AI capabilities across its products and services through potential partnerships with leading AI companies like OpenAI and Google, while simultaneously developing its own AI technologies to stay ahead in the rapidly evolving field.
