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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

#11

Post by belter »

threeseed wrote: post #9
aurareturn wrote: post #2

It 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.

Satya Nadella subsidizing Apple AI. Did not see that one coming....

Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash

#12

Post by aurareturn »

ben_w wrote: post #10
aurareturn wrote: post #5

Earlier quoted context omitted.

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

Apple Intelligence won't be limited to en_US right? It should be available world wide.

Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash

#13

Post by CuriouslyC »

rickdeckard wrote: post #6

Okay. 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 us…

Sam has gotten OpenAI well capitalized, and is playing a bit of a ponzi game. The big moves he has made are almost certainly not sustainable, and he's betting the farm that OpenAI can snowball into a monopoly position, bring costs way down and take over the world before investors start giving him the cold shoulder. OpenAI is far ahead of pretty much everyone but Meta in the race, but in the long run I think Mark and Yann can shut them down if they keep releasing free models.

Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash

#14

Post by threeseed »

belter wrote: post #11
threeseed wrote: post #9

Earlier quoted context omitted.

> 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.

Satya Nadella subsidizing Apple AI. Did not see that one coming....

Microsoft and Apple have had a great relationship for decades.

And Satya would love nothing more than to drive Apple and Google apart.

Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash

#15

Post by ben_w »

aurareturn wrote: post #12
ben_w wrote: post #10

Earlier quoted context omitted.

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

Apple Intelligence won't be limited to en_US right? It should be available world wide.

Eventually, but not initially. I read this thread as if it was about the initial release, not the end-state.

(Given how rapidly AI changes, anything more than a year away isn't easily planned for, even assuming no surprises on the anti-trust front for every Big Tech company nor any surprise new legal obligations for AI).

Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash

#16

Post by hello_kitty2 »

threeseed wrote: post #14
belter wrote: post #11

Earlier quoted context omitted.

Satya Nadella subsidizing Apple AI. Did not see that one coming....

Microsoft and Apple have had a great relationship for decades. And Satya would love nothing more than to drive Apple and Google apart.

Everything is driven by money. Not relationships or random beliefs.

Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash

#17

Post by abhinavk »

quenix wrote: post #8
rpgbr wrote: post #4

Earlier 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.

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 .

Other devices are not getting Apple Intelligence.

Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash

#18

Post by JumpCrisscross »

jgalt212 wrote: post #7

Apple 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.

> Apple was being pressured by Wall Street

No, they weren’t. To the extent there was financial pressure it was in iPhone sales.

Re: Apple to 'pay' OpenAI for ChatGPT through distribution, not cash

#20

Post by nojito »

jgalt212 wrote: post #7

Apple 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.

No it was because of competition.

https://appleinsider.com/articles/24/06/06/craig-federighi-i...

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