Apple is close to reaching a deal with OpenAI, the maker of ChatGPT, just before the launch of its iOS 18 iPhone upgrade. This deal would allow Apple to incorporate OpenAI’s AI technology into the iPhone, according to sources familiar with the matter. The discussions with OpenAI have been ongoing, as Apple is also in talks with Google for chatbot features in the iOS 18 update.
Privacy and security are key components of Apple’s AI strategy, as demonstrated by their slogan “Privacy. That’s iPhone.” The company aims to process as much data as possible on the device itself, rather than relying on cloud-based services. With the new M4 chip in the latest iPads and upcoming iPhone 16, Apple is enhancing its capabilities for AI tools. Additionally, Apple is moving towards using its own chips in servers to have better control over cloud-based AI capabilities. The potential partnership with OpenAI could lead to the introduction of an iPhone chatbot feature, further enhancing the device’s functionality.
Apple’s strategy to collaborate with OpenAI is comparable to its long-standing partnership with Google for Search, worth an estimated $18 billion. The AI strategy of Apple covers three main areas: on-device LLM (in house), cloud-powered LLM (in house), and the potential chatbot feature supplied by OpenAI. While Apple is not developing its own chatbot, it acknowledges the demand for one and is seeking assistance from external partners like OpenAI to meet this need. This approach is in line with Apple’s strategy for search, delegating certain functionalities to third-party providers to offer a comprehensive user experience.
Although prioritizing security and privacy, on-device AI processing may pose limitations in terms of functionality for older iPhones. While newer devices can be optimized for AI tasks, older models may struggle to deliver similar results due to hardware constraints. This issue underscores the importance of hardware compatibility for on-device AI processing, particularly with the anticipated release of iOS 18. The OpenAI deal could provide Apple with enhanced functionality for the iPhone in the upcoming update, while also ensuring data security and privacy standards are maintained.
Ultimately, the reported partnership with OpenAI is expected to enhance the functionality of the iPhone when iOS 18 is introduced in the fall. By collaborating with OpenAI, Apple can leverage the expertise of external partners to deliver advanced AI features, while also safeguarding user data. The upcoming Worldwide Developers Conference will likely shed more light on Apple’s AI strategy and the integration of OpenAI technology into the iOS ecosystem. As Apple continues to prioritize user privacy and data security, the collaboration with OpenAI represents a strategic move to enhance the iPhone’s capabilities while maintaining its commitment to safeguarding user information.
