iPadOS 18

report:-apple-isn’t-paying-openai-for-chatgpt-integration-into-oses

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

in the pocket —

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

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.

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iPadOS 18 adds machine-learning wizardry with handwriting, math features

WWDC 2024 —

Also coming: new SharePlay features and a new “tab bar” for first-party apps.

  • The Calculator app is finally coming to iPad.

    Samuel Axon

  • You’ll be able to write out expressions with the Apple Pencil and see them solved in real time.

    Samuel Axon

CUPERTINO, Calif.—After going into detail about iOS 18, Apple took a few moments in its WWDC 2024 keynote to walk through some changes.

There are a few minor UI changes and new features across Apple’s first party apps. That includes a new floating tab bar. The bar expands into the side bar when you want to dig in, and you can customize the tab bar to include the specific things you want to interact with the most. Additionally, SharePlay allows easier screen sharing and remote control of another person’s iPad.

But the big news is that the Calculator app we’ve all used on the iPhone to the iPad, after years of the iPad having no first-party calculator app at all. The iPad Calculator app can do some things the iPhone version can’t do with the Apple Pencil; a feature called Math Notes can write out expressions like you would on a piece of paper, and the app will solve the expressions live as you scribble them—plus various other cool live-updating math features. (These new Math Notes features work in the Notes app, too.)

Apple didn’t use the word AI here, but this is surely driven by machine learning in some way. Doubly so for a new handwriting feature called Smart Script, which refines and improves your handwriting as you go, tweaking letters to make them more legible when you’re writing very quickly to take notes. It uses machine learning to analyze your handwriting, so these adjustments are meant to match your normal script. That means you can scribble as quickly and recklessly as you want during a conference or a day of classes, but ostensibly, it will be legible at the end of the day.

Not everyone’s a big Pencil user—for some of us, handwriting long ago took a back seat to typing—but Apple is aggressively selling these kinds of flashy features for those who want that experience.

The release date for iPadOS 18 hasn’t been announced yet, but it will likely arrive in September or October alongside iOS 18 and the new iPhone models that will probably be announced then.

Listing image by Samuel Axon

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What to expect at WWDC 24: Big iOS changes, more Vision Pro, and so much AI

WWDC 2024 —

There might not be new hardware, but Apple could make up for it with software.

A colorful logo that says

Enlarge / The logo for WWDC24.

Apple

Apple’s annual developer conference, WWDC, kicks off in Cupertino, California, next week. As always, it will start with a livestream keynote on Monday morning at 10 am Pacific, 1 pm Eastern. We’ll be in attendance reporting on the event, so let’s take a moment to take stock of what we expect to see next week.

But first, let’s note something we don’t think we’ll see: Due to some peculiarities about Apple’s upgrade cycles, as well as a push toward the M4, we’re not actually expecting any major hardware announcements at WWDC this year.

That’s OK, though, because it looks like it’s going to be a big one for software news. iOS has seen relatively modest updates in the past couple of years, but that’s about to change.

AI in the spotlight

Most of the rumors leading up to WWDC have been about Apple making plans to announce tons of generative AI features for its platforms. Part of that is because AI is the hot topic right now, so anything about that is bound to get some coverage. However, according to leaks reported on by Bloomberg, The Information, and others, it looks like Apple is going to make a conscious effort to reposition itself as a leader in AI.

Apple was already doing neat things with machine learning in iOS and elsewhere, like features that make image editing easier, smart recommendations, and more. But there have been major new developments in models lately that allow for many new options, as we’ve seen from others like OpenAI, Google, and Microsoft.

We don’t know many details about exactly what Apple will do here beyond it being a focus. The company has published several papers related to new large-language model chatbots, major Siri improvements, image generation, and more, but it’s hard to tell what will become user-facing features.

Possibilities include auto-generated summaries in apps like Mail, new ways to block ads or interact with websites in Safari, GitHub Copilot-like code editing assistance in Xcode, clip art generation for iWork documents, more conversational and larger-scope answers from Siri, new image editing features, expanded accessibility features, new transcription capabilities, and more.

Apple has reportedly been in talks with companies like OpenAI and Google (it even sounds like a deal has already been reached with OpenAI) about augmenting Siri and other parts of the iOS or macOS experience with an external AI chatbot. Apple has reportedly experimented with its own chatbot, but it’s unlikely that one would be far enough along to be a strong alternative to the likes of ChatGPT. At a minimum, expect Apple to partner with at least one company (probably OpenAI) as a provider for out-of-scope answers to queries asked of Siri or in Spotlight.

There have been rumblings that Apple could offer users a choice of multiple AI providers or launch an AI App Store, but we don’t know for sure how it will all take shape.

iOS and iPadOS 18

iOS 18 (and its close sibling, iPadOS 18) will roll out later this year alongside new iPhones, likely in September or October. But WWDC is the first time we’ll get a look at the major features Apple has planned.

Typically, Apple announces most new iOS features during the upcoming keynote, but it might save a couple that are are related to as-yet unannounced iPhone hardware for later.

The rumor mill this year points to an overhaul of both Control Center and Settings, plus the aforementioned inclusion of numerous new machine learning, LLM, or image generation features. One rumored example of how AI could be used in iOS described a new home screen that allows users to quickly recolor app icons to create a consistent color palette across their phone. Apple might even allow users to place icons wherever they want, addressing the irritating “wobble mode” home screen management that we’ve criticized in our iOS reviews for years.

Expect big new features for Messages, too, like new text effects and formatting options. There’s also a strong possibility that Apple will go into detail about RCS support in iOS. Generative AI could allow users to create custom emojis or stickers, too.

There were also a few rumors that Apple will make some visual changes to iOS, borrowing a bit from the visual language we saw in visionOS this spring.

Oh, and one more thing: iPadOS is finally getting a calculator app. We’re not sure why that took so long, but there it is.

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