Apple users can soon upgrade to ChatGPT Plus within the Settings app

In December, Apple is set to integrate OpenAI’s ChatGPT into its products with the rollout of iOS 18.2, marking a significant enhancement to Siri and other features with advanced artificial intelligence capabilities. This development was previewed to beta testers, and it appears that Apple users will soon have the option to subscribe to ChatGPT Plus directly from the Settings app, as noted by a report from 9to5Mac. This integration could potentially funnel many new users into OpenAI’s premium subscription plan, which costs $20 per month, thereby bolstering OpenAI’s revenue streams.

Currently, free users of ChatGPT face significant limitations, such as restricted access to OpenAI’s latest models (like o1-preview) and premium features, including Advanced Voice Mode. Moreover, they are limited to creating only two images daily with DALL-E and have capped messaging capabilities compared to premium users.

The business dynamics between Apple and OpenAI pose intriguing questions regarding monetization. It appears that Apple is not paying OpenAI directly for the integration but is instead offering exposure as compensation. This exposure, particularly through the streamlined access to ChatGPT Plus, could serve as a worthwhile endeavor for OpenAI, assuming that a significant number of users choose to upgrade. Conversely, if many users merely opt for the free version, OpenAI might face elevated costs associated with the influx of new, unpaid users accessing its service.

Another critical aspect of this partnership is the uncertainty surrounding potential revenue sharing. It remains undetermined whether Apple will receive a percentage of the revenue generated from ChatGPT Plus subscriptions through the Settings app. At present, Apple may be betting on cutting-edge AI features to enhance its product appeal, which could encourage customers to invest in new devices.

Despite the promising nature of this development, the partnership is not exclusive to OpenAI. Apple has announced intentions to incorporate AI models from other developers in the near future, which could include tech giants like Google.

In the backdrop of this collaboration, OpenAI is navigating various challenges, including executive turnover and fundraising attempts. Recently, OpenAI has been in the spotlight for significant departures within its leadership, including the unexpected exit of CTO Mira Murati, which may have influenced Apple’s decision to withdraw from participating in a recent $6.6 billion funding round for OpenAI.

Integrating ChatGPT and providing users with upgraded options could enhance user engagement; however, for it to be financially beneficial for OpenAI, it will be essential to convert free users to paid subscribers. The overall success of this venture hinges on the reception of AI-powered features among Apple’s extensive user base and the willingness of users to pay for additional benefits. If executed effectively, the partnership could pave the way for more advanced AI applications within Apple’s ecosystem while offering OpenAI an avenue for increased revenue. However, the key to its success will also depend on how each company navigates the complexities of revenue generation and user satisfaction in an increasingly competitive AI landscape.