Apple is close to closing a deal with OpenAl to use the startup’s technology in the iPhone, part of a broader effort to bring artificial intelligence capabilities to its devices, according to people familiar with the matter.
The parties are finalizing the terms of an agreement to integrate ChatGPT features into Apple is upcoming iPhone operating system, iOS 18, according to the people, who requested to remain anonymous due to the sensitive nature of the subject.
Apple has also held talks with Alphabet’s Google about licensing that company’s Gemini chatbot. These discussions have not yet led to an agreement but are ongoing.
A deal with OpenAI would allow Apple to offer a popular chatbot as part of a flurry of new AI features it is planning to announce next month. Bloomberg reported in April that discussions with OpenAl had intensified. However, there’s no certainty that an announcement of a deal will come soon.
Representatives for Apple, OpenAI, and Google declined to comment.
When Apple hosts its annual Worldwide Developers Conference in June, the company intends to make a big splash in the artificial intelligence space. As part of the effort, the company will run some of its future artificial intelligence capabilities through data centers equipped with its own in-house processors, Bloomberg reported.
Last year, Apple CEO Tim Cook said he personally uses OpenAI’s ChatGPT but added that “a lot of issues need to be addressed.” And Tim Cook promised that new AI features would arrive in Apple products “on a very cautious basis.”
Last week, on Apple’s earnings call, he stated that Apple would have an advantage in AI.
“We believe in the transformative power and promise of AI,” and Tim added, “We believe we have the advantages that will differentiate us in this new era, including the unique combination of seamless integration of Apple’s hardware, software, and services.” Cook said this during the earnings call.
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