Apple in Talks with OpenAI to Integrate AI Technology into iPhone for 2024

Apple is in discussions with OpenAI to potentially use the startup's generative AI technology for new features on the iPhone in 2024, according to a report from Bloomberg. The companies are negotiating the terms of an agreement and how OpenAI's capabilities would be integrated into Apple's next iPhone operating system, iOS 18. This move could give OpenAI, the creator of the popular ChatGPT, a dominant position in the rapidly growing AI market.

While Apple has been slower than rivals like Microsoft and Google in rolling out generative AI, which can generate human-like responses to written prompts, CEO Tim Cook has stated that the company is investing significantly in the technology. Cook said Apple will reveal more about its plans to leverage AI later this year. The iPhone maker is building its own language models to power some iOS 18 features, but is also examining partnerships with leading AI firms.

In addition to OpenAI, Apple has been in talks with Google to potentially license its Gemini chatbot for the iPhone. However, Apple has not made a final decision on which AI partners it will use. The company could reach agreements with both OpenAI and Google, or choose another provider entirely. The integration of advanced AI capabilities is anticipated to considerably enhance the iPhone user experience, enabling features like an AI-based chatbot and improved personalization.

Why this matters: The integration of generative AI technologies into the iPhone, used by hundreds of millions worldwide, could accelerate the adoption and impact of AI on a massive scale. Apple's choice of AI partners will have major implications for the competitive landscape and future of the AI industry.

The discussions between Apple and OpenAI are taking place about six weeks before Apple's annual Worldwide Developers Conference (WWDC) in June 2024. Apple's marketing leader has hinted that the WWDC event will be "absolutely incredible" and focus heavily on artificial intelligence, suggesting significant upgrades to iOS 18 and other Apple operating systems. Over a billion smartphones with generative AI features are expected to be delivered by the end of 2027, with more than 100 million of those shipping in 2024 alone, according to Bloomberg's report.

Key Takeaways

• Apple in talks with OpenAI to integrate generative AI in iPhone by 2024
• OpenAI's ChatGPT tech could give it a dominant position in growing AI market
• Apple also in talks with Google to license Gemini chatbot for iPhone
• Generative AI integration expected to enhance iPhone user experience
• Adoption of generative AI in smartphones to accelerate, over 100M in 2024