Apple’s ingenious AI strategy will let the iPhone maker have its cake and eat a cut of OpenAI’s ChatGPT Plus subscription plan, too

Apple's ingenious AI strategy will let the iPhone maker have its cake and eat a cut of OpenAI's ChatGPT Plus subscription plan, too

What you need to know

  • Apple is slated to roll out its much-anticipated iOS 18.2 update featuring advanced Apple Intelligence features, including ChatGPT and Visual Intelligence.
  • The latest iOS 18.2 beta update features a new Upgrade to ChatGPT Plus option in the Settings app, indicating that the iPhone maker is getting a cut for advertising OpenAI’s $20 service across its products.
  • Apple Intelligence will remain freely available across Apple’s tech stack, potentially driving iPhone 16 sales and growing its user base.

As a seasoned tech enthusiast with over two decades of experience under my belt, I must say that Apple’s AI strategy unveiled at WWDC 2024 has been nothing short of impressive. Having closely followed the tech giant since the days of the iPod, it’s fascinating to witness their metamorphosis into a dominant player in the generative AI landscape.


As a tech enthusiast, it’s quite fascinating to witness Apple, often perceived as a late bloomer in the generative AI scene, thriving remarkably well in this category. You might recall that Apple regained its title as the world’s most valuable company, surpassing both Microsoft and NVIDIA, with an impressive market cap of $3 trillion, not long after announcing its new AI strategy, aptly named “Apple Intelligence.

During Apple’s yearly developer gathering (WWDC 2024), significant AI-enhanced features were rolled out across their entire platform, such as Writing Tools, Genmoji, and an upgraded Siri AI assistant. This delay in revealing their new AI plan might be due to concerns about privacy and security associated with AI technology.

In a surprising move, Apple plans to roll out more sophisticated AI-driven functionalities across their technology lineup next month with the release of iOS 18.2. Notable additions include capabilities like ChatGPT and Visual Intelligence. This decision has garnered attention, particularly from investors, as these premium features will be made accessible to Apple’s extensive user base at no charge.

At a pivotal moment, Apple is facing challenges with its iPhone sales, particularly in China. There’s speculation that providing Apple Intelligence for free to users could be a tactic aimed at boosting the sales of the upcoming iPhone 16. However, this remains uncertain.

Among the key highlights of Apple’s iOS 18.2 update, one standout feature is the integration of OpenAI’s ChatGPT. This advanced AI chatbot is designed to collaborate with Apple’s own AI, enabling it to manage intricate tasks more efficiently.

It’s possible that Apple could one day introduce fees for their AI services, similar to the subscription models of services like ChatGPT Plus ($20) from OpenAI or Copilot Pro ($20) by Microsoft. Surprisingly, Apple has already begun to generate revenue from its AI offerings, though not in a straightforward manner.

9to5Mac reports that the iOS 18.2 beta version introduces a new option for subscribing to ChatGPT Plus within the Settings app. This subscription pertains to OpenAI’s $20 ChatGPT Plus plan, but Apple is promoting this service on its platform. As a result, they stand to receive a percentage or commission from the subscriptions sold.

In the larger picture, Apple’s intelligent features are expected to stay available, possibly boosting sales for the iPhone 16 as more people use them, thereby expanding the Apple Intelligence community. It’s also likely that Google’s Gemini service will become part of this landscape in the near term.

It’s worth noting that some inside sources at Apple are expressing worries about their AI approach, with the concern being that Apple’s AI, referred to as Apple Intelligence, might be lagging behind ChatGPT by OpenAI by approximately two years.

Individuals at Apple think that their current generative AI technology seems to be approximately two years behind the frontrunners in the field, as of now.

According to Mark Gurman from Bloomberg, ChatGPT is found to be more precise than Siri in providing answers, and it can handle around 30% more queries. Furthermore, Gurman notes that it’s challenging to underestimate the capabilities of Apple.

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2024-11-13 16:10