AI assitants

Report: Apple isn’t paying OpenAI for ChatGPT integration into OSes

AI, AI assitants, Apple, apple intelligence, Biz & IT, chatgpt, chatgtp, GPT-4, iOS, ios 18, iPadOS, iPadOS 18, IPhone, large language models, machine learning, macOS, macos sequoia, openai, sam altman / Blake Jones / June 13, 2024

in the pocket —

Apple thinks pushing OpenAI’s brand to hundreds of millions is worth more than money.

Benj Edwards – Jun 13, 2024 5: 20 pm UTC

The OpenAI and Apple logos together. — OpenAI / Apple / Benj Edwards

On Monday, Apple announced it would be integrating OpenAI’s ChatGPT AI assistant into upcoming versions of its iPhone, iPad, and Mac operating systems. It paves the way for future third-party AI model integrations, but given Google’s multi-billion-dollar deal with Apple for preferential web search, the OpenAI announcement inspired speculation about who is paying whom. According to a Bloomberg report published Wednesday, Apple considers ChatGPT’s placement on its devices as compensation enough.

“Apple isn’t paying OpenAI as part of the partnership,” writes Bloomberg reporter Mark Gurman, citing people familiar with the matter who wish to remain anonymous. “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.”

The Bloomberg report states that neither company expects the agreement to generate meaningful revenue in the short term, and in fact, the partnership could burn extra money for OpenAI, because it pays Microsoft to host ChatGPT’s capabilities on its Azure cloud. However, OpenAI could benefit by converting free users to paid subscriptions, and Apple potentially benefits by providing easy, built-in access to ChatGPT during a time when its own in-house LLMs are still catching up.

And there’s another angle at play. Currently, OpenAI offers subscriptions (ChatGPT Plus, Enterprise, Team) that unlock additional features. If users subscribe to OpenAI through the ChatGPT app on an Apple device, the process will reportedly use Apple’s payment platform, which may give Apple a significant cut of the revenue. According to the report, Apple hopes to negotiate additional revenue-sharing deals with AI vendors in the future.

Why OpenAI

The rise of ChatGPT in the public eye over the past 18 months has made OpenAI a power player in the tech industry, allowing it to strike deals with publishers for AI training content—and ensure continued support from Microsoft in the form of investments that trade vital funding and compute for access to OpenAI’s large language model (LLM) technology like GPT-4.

Still, Apple’s choice of ChatGPT as Apple’s first external AI integration has led to widespread misunderstanding, especially since Apple buried the lede about its own in-house LLM technology that powers its new “Apple Intelligence” platform.

On Apple’s part, CEO Tim Cook told The Washington Post that it chose OpenAI as its first third-party AI partner because he thinks the company controls the leading LLM technology at the moment: “I think they’re a pioneer in the area, and today they have the best model,” he said. “We’re integrating with other people as well. But they’re first, and I think today it’s because they’re best.”

Apple’s choice also brings risk. OpenAI’s record isn’t spotless, racking up a string of public controversies over the past month that include an accusation from actress Scarlett Johansson that the company intentionally imitated her voice, resignations from a key scientist and safety personnel, the revelation of a restrictive NDA for ex-employees that prevented public criticism, and accusations against OpenAI CEO Sam Altman of “psychological abuse” related by a former member of the OpenAI board.

Meanwhile, critics of privacy issues related to gathering data for training AI models—including OpenAI foe Elon Musk, who took to X on Monday to spread misconceptions about how the ChatGPT integration might work—also worried that the Apple-OpenAI deal might expose personal data to the AI company, although both companies strongly deny that will be the case.

Looking ahead, Apple’s deal with OpenAI is not exclusive, and the company is already in talks to offer Google’s Gemini chatbot as an additional option later this year. Apple has also reportedly held talks with Anthropic (maker of Claude 3) as a potential chatbot partner, signaling its intention to provide users with a range of AI services, much like how the company offers various search engine options in Safari.

Report: Apple isn’t paying OpenAI for ChatGPT integration into OSes Read More »

OpenAI updates ChatGPT-4 model with potential fix for AI “laziness” problem

Break’s over —

Also, new GPT-3.5 Turbo model, lower API prices, and other model updates.

Benj Edwards – Jan 26, 2024 5: 26 pm UTC

A lazy robot (a man with a box on his head) sits on the floor beside a couch.

On Thursday, OpenAI announced updates to the AI models that power its ChatGPT assistant. Amid less noteworthy updates, OpenAI tucked in a mention of a potential fix to a widely reported “laziness” problem seen in GPT-4 Turbo since its release in November. The company also announced a new GPT-3.5 Turbo model (with lower pricing), a new embedding model, an updated moderation model, and a new way to manage API usage.

“Today, we are releasing an updated GPT-4 Turbo preview model, gpt-4-0125-preview. This model completes tasks like code generation more thoroughly than the previous preview model and is intended to reduce cases of ‘laziness’ where the model doesn’t complete a task,” writes OpenAI in its blog post.

Since the launch of GPT-4 Turbo, a large number of ChatGPT users have reported that the ChatGPT-4 version of its AI assistant has been declining to do tasks (especially coding tasks) with the same exhaustive depth as it did in earlier versions of GPT-4. We’ve seen this behavior ourselves while experimenting with ChatGPT over time.

OpenAI has never offered an official explanation for this change in behavior, but OpenAI employees have previously acknowledged on social media that the problem is real, and the ChatGPT X account wrote in December, “We’ve heard all your feedback about GPT4 getting lazier! we haven’t updated the model since Nov 11th, and this certainly isn’t intentional. model behavior can be unpredictable, and we’re looking into fixing it.”

We reached out to OpenAI asking if it could provide an official explanation for the laziness issue but did not receive a response by press time.

New GPT-3.5 Turbo, other updates

Elsewhere in OpenAI’s blog update, the company announced a new version of GPT-3.5 Turbo (gpt-3.5-turbo-0125), which it says will offer “various improvements including higher accuracy at responding in requested formats and a fix for a bug which caused a text encoding issue for non-English language function calls.”

And the cost of GPT-3.5 Turbo through OpenAI’s API will decrease for the third time this year “to help our customers scale.” New input token prices are 50 percent less, at $0.0005 per 1,000 input tokens, and output prices are 25 percent less, at $0.0015 per 1,000 output tokens.

Lower token prices for GPT-3.5 Turbo will make operating third-party bots significantly less expensive, but the GPT-3.5 model is generally more likely to confabulate than GPT-4 Turbo. So we might see more scenarios like Quora’s bot telling people that eggs can melt (although the instance used a now-deprecated GPT-3 model called text-davinci-003). If GPT-4 Turbo API prices drop over time, some of those hallucination issues with third parties might eventually go away.

OpenAI also announced new embedding models, text-embedding-3-small and text-embedding-3-large, which convert content into numerical sequences, aiding in machine learning tasks like clustering and retrieval. And an updated moderation model, text-moderation-007, is part of the company’s API that “allows developers to identify potentially harmful text,” according to OpenAI.

Finally, OpenAI is rolling out improvements to its developer platform, introducing new tools for managing API keys and a new dashboard for tracking API usage. Developers can now assign permissions to API keys from the API keys page, helping to clamp down on misuse of API keys (if they get into the wrong hands) that can potentially cost developers lots of money. The API dashboard allows devs to “view usage on a per feature, team, product, or project level, simply by having separate API keys for each.”

As the media world seemingly swirls around the company with controversies and think pieces about the implications of its tech, releases like these show that the dev teams at OpenAI are still rolling along as usual with updates at a fairly regular pace. Despite the company almost completely falling apart late last year, it seems that, under the hood, it’s business as usual for OpenAI.