Apple is reportedly nearing a deal with OpenAI for ChatGPT to power new AI features on the iPhone.
The two parties have been in talks to use the chatbot’s smarts in Apple’s next mobile operating system, iOS 18, according to a Bloomberg report that cited people familiar with the matter.
The deal if completed would see OpenAI pip rivals to the post as Apple’s first AI partner. The iPhone maker is also said to be in discussions with Google and Anthropic, maker of the Claude AI chatbot, to improve features such as Siri and search.
Those negotiations are reportedly ongoing, and there’s no confirmation on when Apple will make the deals public. Neither Apple nor OpenAI have commented on the report.
The tech giant is kicking the tires on external AI providers as it works on a longer-term solution. A separate Bloomberg report claims that Apple is building its own AI chip for data centres, the vast facilities that power chatbots using remote computer servers.
This suggests it could be building its own AI capabilities, which may be integrated into devices while relying on others for features that work over the internet (or cloud). Apple will have to move quickly if it wants to catch up with the rest of the tech industry, which is already offering conversational AI on everything from phones to laptops.
Part of the hold-up is due to an internal debate over the merits of cloud-powered AI versus on-device, with Apple typically favouring the latter for its privacy perks. Apple is among a small list of major companies that have banned their employees from using ChatGPT over security concerns.
Such a deal could mark a massive payday for OpenAI, which already counts Microsoft as an investor. The company faces pressure to release new features amid an AI race with Google, Meta, and many smaller startups. To that end, OpenAI is expected to announce new voice and search features for its free and premium ChatGPT models later today (May 14).
When will Apple announce the iPhone AI update?
Apple is expected to unveil its new AI functionalities as part of an iOS 18 preview at its annual event for developers, WWDC, in June.
Which iPhones will support iOS 18?
The update is expected to be compatible with the iPhone 11 and beyond. However, rumours claim it could work on older models such as the iPhone XR and others older than five years.
The chances are the iPhone X and iPhone 8 series will be dropped from iOS 18.
