Sign up for our daily and weekly newsletters for the latest updates and exclusive content on the industry’s best AI coverage. Learn more
Open AI It demonstrated the new iPhone integration on Wednesday. iOS 18.2 It’s been rolled out to users, bringing ChatGPT directly into Siri, authoring tools, and camera features.
Feature updates released on Day 5 of OpenAI “12 days of Shipmas” The product launch marks a rare reveal of Apple’s core iPhone features to outside software. ChatGPT can now handle commands through Siri and handle tasks across the operating system.
“If Siri thinks it would be helpful to hand off a task to ChatGPT, she can just hand it over,” Dave Cummings, ChatGPT engineering manager at OpenAI, explained during Wednesday’s demo. The system works through three main paths: Siri voice commands, a composing tool for text editing, and visual intelligence through camera control buttons.
Users can access basic ChatGPT features without an account, but premium features require a subscription.
Inside Apple’s AI Strategy: Why the iPhone Maker Chooses OpenAI Instead of Building It in-house
This partnership addresses important challenges for both companies. Despite its $3 trillion market capitalization, Apple is struggling to keep up with its competitors in AI development. Google’s Gemini and Anthropic’s Claude have shown better capabilities than anything else in Apple’s current AI portfolio.
“We want to make ChatGPT frictionless and easy to use everywhere,” OpenAI CEO Sam Altman said during a press conference Wednesday. “We love Apple devices, so we’re very proud of this integration.”
The timing of this launch could boost sales of Apple’s premium devices at a critical moment. Although the company doesn’t break out AI-related revenue, limiting these features to the iPhone 15 Pro models and newer devices gives consumers a compelling reason to upgrade.
This strategy reflects Apple’s previous pattern of using advanced features such as: ProRAW Photos or ProRes video — Drive adoption of premium devices with margins estimated at over 60%.
This move also positions Apple differently in the AI race. Rather than competing head-on with Google and Microsoft in building basic AI models, Apple is focusing on hardware and user experience while leveraging partnerships to bring AI into the ecosystem.
Because training AI models is expensive with uncertain returns, this approach may prove to be more profitable in the short term.
The $5 billion question: How does OpenAI plan to monetize its million-user iPhone base?
For OpenAI, this partnership provides immediate access to Apple’s installed base. 1 billion iPhone users. This is a critical time for AI companies, which are under pressure to generate revenue while managing massive computing costs. According to a recent report, OpenAI’s computing cost is $5 billion per year Until 2025.
This partnership comes as OpenAI pursues broader monetization. The company recently announced a partnership with a defense contractor. Anduril and $200 per month ChatGPT Pro floor. OpenAI’s CFO Sarah Friar said the company is exploring. advertising revenue stream.
The introduction of ChatGPT to enterprise iPhones could change enterprise AI spending.
For business users, this integration means more than just a new iPhone feature. Many companies have invested heavily in standalone AI solutions, often paying for multiple services, including: jasperClaude or Enterprise ChatGPT License.
Native iPhone AI integration can unify these tools, potentially reshaping how businesses approach mobile productivity. Businesses can shift their corporate software budgets from specialized AI applications to platforms that integrate seamlessly with the Apple ecosystem.
Consolidation may also reshape the competitive landscape. Google is We pay Apple billions of dollars every year. If you want to remain the default search engine on your iPhone, you may need to reevaluate your mobile strategy. The search giant has already accelerated its AI efforts, recently launching Gemini across its products.
Apple’s privacy-first reputation influenced the design of the integration. The system requires explicit user permission before sharing data with ChatGPT, and anonymous usage options protect user privacy. All processing occurs on-device for basic functions, while more advanced functions require cloud computation.
The future of mobile AI, a new platform war begins
This partnership highlights a broader shift in computing, where AI capabilities are becoming as fundamental as the operating system itself. A new platform war is beginning, and unlike the mobile OS war of the 2000s, this war is centered around AI integration.
The stakes are much higher. Whoever controls the AI interface will likely control the primary way users interact with technology in the coming years. Apple’s decision to partner rather than compete suggests they have learned a lesson from history. Sometimes being the platform that hosts the best services is more valuable than trying to build everything in-house.
OpenAI is planning more announcements as part of its “12 Days of Shipmas” campaign. But Apple’s partnership may prove to be the most important, reshaping the way its one billion users interact with AI technology every day.
Neither company is exchanging cash payments in the initial partnership, and Apple sees the large-scale deployment potential of its devices as ample compensation for OpenAI. However, future revenue sharing agreements are being explored, particularly around ChatGPT’s premium subscriptions.
For OpenAI, this deal offers something potentially valuable. Seamless access to hundreds of millions of Apple devices. For Apple, this is a strategic play that keeps the company competitive in the AI space while maintaining the flexibility to collaborate with other providers like Google and Anthropic. This suggests that Apple is positioning itself as a battlefield rather than a combatant in the new AI platform war. .
