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Apple’s reported ChatGPT deal could crown OpenAI as king of the valley

Apple and OpenAI have reportedly formed a partnership to build ChatGPT into the iPhone operating system, according to Bloomberg and The information. The big news is expected to be announced next week Worldwide Developers Conference. Apple appears to be the latest to join a large group of companies that have partnered with OpenAI’s Sam Altman. However, this deal is unlike any other and could change the technology landscape for years to come.

Several outlets are reporting that Altman’s deal with Apple is almost certain to happen ChatGPT is a basic feature of every iPhone. If true, it could mark the end of the long-reported battle between Google and OpenAI to power the iPhone’s central AI chatbot. This will put Altman’s technology in front of hundreds of millions of highly desirable users and position OpenAI as a true long-term power player in Silicon Valley.

While it’s unclear exactly how Apple plans to use OpenAI’s technology, the iPhone maker has discussed using ChatGPT to power Siri or potentially as a standalone app, according to The information. Apple is also expected to offer its new AI features as a service option, according to Bloomberg, so wary customers can steer clear of them. Apple is reportedly still in talks with Google about using Gemini on the iPhone, but has yet to reach a deal.

Apple and OpenAI did not immediately respond to a request for confirmation about the partnership.

In 2002, Apple agreed to a deal with another hot startup at the time, allowing Sergey Brin and Larry Page’s Google search engine to power the Safari browser. This landmark agreement helped cement Google as the dominant search engine for all Apple products and develop a monopoly in the US regulators are now trying to take it down 20 years later. As this case made clear, Google paid Apple $20 billion for the privilege in 2022, which shows how important these partnerships are by default. That doesn’t mean OpenAI’s partnership with Apple will be as long or as wide-ranging as Google’s, but these iPhone defaults matter.

Google now expects AI to replace Search, but has failed to develop a compelling product. Google’s AI image generator was quickly downgraded for showing racial bias, which CEO Sundar Pichai called “unacceptable.” Google Search AI Overviews also looked remarkably stupid when it was introduced last month, telling consumers to put glue on pizza and eat rocks for a healthy diet. While it’s unclear why Apple reportedly chose OpenAI over Google, these bugs may offer some insights.

This deal gives Apple access to the hottest AI technology around, offering some much-needed innovation to a company that has been lacking lately. The iPhone manufacturer is undoubtedly late to the AI ​​party, so it feels compelled to make a big splash upon arrival. Apple reportedly decided it was too far behind to compete with OpenAI and Google, so it used the old adage: if you can’t beat them, join them.

However, Apple expects to release a range of internal AI features at WWDC next week. Voice memo transcriptions, automated responses, and more it can be controlled by Apple’s in-device AI. But beyond that, Apple is reportedly thinking bigger than chatbots, hoping one day to build a pair of AI-powered robots that the company is secretly developing. Bloomberg reports that one of the devices is a desktop robotic arm with a large iPad-like display. The other is said to be a mobile robot that can follow users around and handle housework. It has also been reported that Airpods will get AI features and cameras at some point.

The AI ​​environment has changed significantly since Apple first started talking to Google and OpenAI about these deals a few months ago. The world has grown in recent months increasingly skeptical of OpenAI’s safety cultureand CEO Sam Altman’s supposed problems with telling the truth. But these valid concerns raised by former employees remain sidelined in Apple’s eyes. The iPhone maker must choose the strongest partner to usher in a successful AI era. Altman appears to have “moved fast and broken things” to get to this point, and the Apple partnership justifies that behavior.

In doing so, Apple will increase the status of OpenAI and Sam Altman as global tech giants. Apple has been in the business of making kings before, and it appears to have picked its latest beneficiary.

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