Apple to 'pay' OpenAI for ChatGPT through distribution, not cash
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Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash
#2It sort of makes sense but can be risky for OpenAI. I suspect that there are limits to this deal. For example, Apple will pay x amount if conversion rate is lower than x.
You're adding a few billion devices to do inference for if you're OpenAI without knowing the conversion rate from free to paid ChatGPT accounts from Apple users.
Also, can OpenAI really handle that much more traffic? Sometimes my paid ChatGPT account stalls or is slow even as of June 2024. Now they're going to add a few billion more users/devices at once. That's insane. How are they going to do this?
Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash
#3[dead]
Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash
#4It sort of makes sense but can be risky for OpenAI. I suspect that there are limits to this deal. For example, Apple will pay x amount if conversion rate is lower than x. You're adding a few billion devices to do inference for if you're OpenAI without knowing the conversion rate from free to paid ChatGPT accounts from Apple users. Also, can OpenAI really handle that much more traffic? Sometimes my paid ChatGPT accoun…
Not billion(s), because Apple Intelligence will only work on Apple Silicon (Mx) Mac and iPad and iPhone 15 Pro. Also, initially only in en_US devices.
I’ve heard 100 mi figure, but can’t confirm/remember where.
Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash
#5It sort of makes sense but can be risky for OpenAI. I suspect that there are limits to this deal. For example, Apple will pay x amount if conversion rate is lower than x. You're adding a few billion devices to do inference for if you're OpenAI without knowing the conversion rate from free to paid ChatGPT accounts from Apple users. Also, can OpenAI really handle that much more traffic? Sometimes my paid ChatGPT accoun…
Not billion(s), because Apple Intelligence will only work on Apple Silicon (Mx) Mac and iPad and iPhone 15 Pro. Also, initially only in en_US devices. I’ve heard 100 mi figure, but can’t confirm/remember where.
Do Siri queries not fall back to GPT4o in older devices? That seems weird because the inference is done in the cloud.
But 100m figure seems small. There are ~100m Apple Silicon Macs sold in the last 4 years. That's not including any M1+ iPads or iPhone 15 Pros.
I'm guessing maybe 250m? Still a ton of queries and usage. It's not just Siri. I believe features like optimize email response also uses GPT4o.
Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash
#6Okay.
Still curious if Apple "at least" has to pay the cloud-compute for the "free" OpenAI services they use (with OpenAI just licensing them their product for free) or if Apple really gets free AI-features AND 30% RevShare from handling sales of Premium OpenAI accounts...
I can't imagine that the profit of sold Premium subscriptions for OpenAI is sufficient to pay for the infrastructure hundreds of million iPhone users will consume using the free account.
Moreover, with Apple obviously executing their usual playbook, being the gatekeeper and total owner of all statistics, then slowly diverting traffic to their own products and cutting out the supplier...
Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash
#7Apple was being pressured by Wall Street to make move here, so you'd think they'd have the weak hand. However, by the time they moved, there were 3-4 vendors Apple could play off each other.
Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash
#8It sort of makes sense but can be risky for OpenAI. I suspect that there are limits to this deal. For example, Apple will pay x amount if conversion rate is lower than x. You're adding a few billion devices to do inference for if you're OpenAI without knowing the conversion rate from free to paid ChatGPT accounts from Apple users. Also, can OpenAI really handle that much more traffic? Sometimes my paid ChatGPT accoun…
Not billion(s), because Apple Intelligence will only work on Apple Silicon (Mx) Mac and iPad and iPhone 15 Pro. Also, initially only in en_US devices. I’ve heard 100 mi figure, but can’t confirm/remember where.
There are three models:
1. Apple On-Device
2. Apple Server
3. GPT-4o
Apple Silicon/Mx, iPad, iPhone 15 Pro can access all three.
All other devices can still access Apple Server and GPT-4o. So, I'd expect the incompatible devices to actually hammer OpenAI more.
Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash
#9It sort of makes sense but can be risky for OpenAI. I suspect that there are limits to this deal. For example, Apple will pay x amount if conversion rate is lower than x. You're adding a few billion devices to do inference for if you're OpenAI without knowing the conversion rate from free to paid ChatGPT accounts from Apple users. Also, can OpenAI really handle that much more traffic? Sometimes my paid ChatGPT accoun…
> Also, can OpenAI really handle that much more traffic
Microsoft Azure is handling the traffic.
And Apple would never enter into such a deal without proper capacity planning.
Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash
#10Earlier quoted context omitted.
Not billion(s), because Apple Intelligence will only work on Apple Silicon (Mx) Mac and iPad and iPhone 15 Pro. Also, initially only in en_US devices. I’ve heard 100 mi figure, but can’t confirm/remember where.
Do Siri queries not fall back to GPT4o in older devices? That seems weird because the inference is done in the cloud. But 100m figure seems small. There are ~100m Apple Silicon Macs sold in the last 4 years. That's not including any M1+ iPads or iPhone 15 Pros. I'm guessing maybe 250m? Still a ton of queries and usage. It's not just Siri. I believe features like optimize email response also uses GPT4o.
Sure, but they're not all en_US. I've got three on my desk right now*, and I'm in Germany.
* got one of my own right before a previous employer closed down and let us keep the work one, third one is from new employer