Apple is nearing a deal with Microsoft-backed OpenAI to infuse its large language model, known as ChatGPT, into the future iPhone operating system, according to Bloomberg, citing sources familiar with the discussions.
The two sides have been finalizing terms for a pact to use ChatGPT features in Apple's iOS 18, the next iPhone operating system, said the people, who asked not to be identified because the situation is private. Apple also has held talks with Alphabet Inc.'s Google about licensing that company's Gemini chatbot. Those discussions haven't led to an agreement, but are ongoing. -Bloomberg
Bloomberg reported a few weeks ago that the discussions with OpenAI had intensified.
In a note to clients on Monday, Wedbush analyst Daniel Ives "expect exclusivity around a number of...advanced OpenAI features on the iPhone that Apple will build around a broader AI strategy on iPhone 16 and iOS."
Last May, Apple CEO Tim Cook expressed cautious optimism about the proliferation of artificial intelligence services hitting the market, indicating that "there are a number of issues that need to be sorted."
"We've obviously made enormous progress, integrating AI and machine learning throughout our ecosystem," Cook said, adding, "And we weaved it into products and features for many years."
News of ChatGPT potentially being added to iOS 18 comes ahead of Apple's annual Worldwide Developers Conference next month, where artificial intelligence is expected to be a significant focus of the event.
In markets, shares of Google in premarket trading fell nearly 2%, while Apple shares were higher by more than 1.5%.
Now, ChatGPT is set to become mass-adopted across iPhones worldwide - as long as the user updates the operating software. There are more than 2 billion active Apple products (iPhones, iPads, Macs, and other hardware devices).
