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Apple to pay OpenAI for ChatGPT through distribution, not cash

Bloomberg
Bloomberg • 4 min read
Apple to pay OpenAI for ChatGPT through distribution, not cash
Tim Cook, from left, John Giannandrea and Craig Federighi during the Apple Worldwide Developers Conference at Apple Park campus in Cupertino on June 10. Photo: David Paul Morris/Bloomberg
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When Apple Inc. Chief Executive Officer Tim Cook and his top deputies this week unveiled a landmark arrangement with OpenAI to integrate ChatGPT into the iPhone, iPad and Mac, they were mum on the financial terms.

Left unanswered on Monday: which company is paying the other as part of a tight collaboration that has potentially lasting monetary benefits for both. But, according to people briefed on the matter, the partnership isn’t expected to generate meaningful revenue for either party — at least at the outset.

The arrangement includes weaving ChatGPT, a digital assistant that responds in plain terms to information requests, into Apple’s Siri and new writing tools. Apple isn’t paying OpenAI as part of the partnership, said the people, who asked not to be identified because the deal terms are private. Instead, Apple believes pushing OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments, these people said.

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