Apple, OpenAI in talks to add ChatGPT to iPhones: Bloomberg

Apple (AAPL) is reportedly closing a deal with OpenAI to include its technology on iPhones. The companies are set to finalize the terms of an agreement to include ChatGPT on iOS 18.

ChatGPT is among the leading AI services. As iPhone sales slumped last quarter, the partnership with OpenAI could be Apple's latest move to innovate the iPhone and increase sales.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Melanie Riehl

Video Transcript

Apple is reportedly closing in on a deal with Open A I to include its technology on iPhones.

That's according to Bloomberg.

The companies are looking to finalise terms to include chat GP T on Apple's next O SI S 18.

According to that report, a couple of things here stand out.

We see Apple stock up about 1% so outperforming the broader market early here we have WWGC.

Early next month.

Apple has been, I mean, what?

It's been a year and a half since everyone's getting on the A. I train.

But if there's a laggard, if you're if there's, we're able to talk about there being laggards.

Apple has been the laggard on that front, Um, but my what stood out to me from this report is two things.

There's the obvious, which is, well, Apple and Google are search partners so tough that Google is not part of this agreement.

But you know, Apple is a tech company, but it's all about the brand, like the the like.

Their branding is the thing, which is, of course, the ad last week, et cetera, et cetera.

Chat GP T is the main A. I brand so I know that people are gonna come out of the woodwork and debate.

What?

The best technical a I chat, you know, large language model, um, language learning model.

Um, large language learning model.

Whatever, uh, you're gonna we're gonna we're gonna debate what the actual technical best one of these is.

But when people on the street you say a i anyone who gives you an answer other than I don't know what that is is probably gonna talk about chat GP T. And that's a very strong brand to have at this stage of the cycle.

And that was my kind of big picture takeaway here for Apple thinking about an approach to a heck of a lot of sense.

Well, it makes sense it like it's, I think, again really tough for Google, who's been their search partner who is trying really hard, and they're gonna try hard this week at their event to talk about all their a i things.

But if Apple is like, we're sort of agnostic on whether a I actually works like I don't I don't know how much they care about your prompts and iMessage being good or you even using them.

But if they want to come out and make a splash, it makes sense at this stage in the game to be like we're part of the chat G BT They're the ones.

Yeah, it it does.

And I think that's also the argument that a lot of analysts are making this morning and have made ever since.

Reports of this, uh, started to surface late last week, and they were talking about the fact that maybe this is what is necessary in order for Apple to have a blowout are coming up here later on this year when it comes to the next iPhone cycle, if that is going to be what it takes for people to eventually upgrade their iPhone.

And I think the case is out on that because I think the use cases, the personal use cases need to be developed just a bit like I still think I. I wonder honestly how many people use chat GP T not only on daily basis, but more so even on a weekly basis, and whether or not that some of that excitement is going to be enough in order for them to go out and spend $1200 1300 dollars on a new phone.

But I do think it does make sense one, because Apple is largely been criticised for the fact that it hasn't jumped in more, I guess more aggressively into the A. I push up until late, so I think they can put some of those fears out there.

But two, I think even beyond that the fact that they are teaming up with open A I like you are saying with chat GP T that is the house owning when you are talking about a I that does make sense.

If they are looking for any sort of push, which I think they could get here, I mean, I think sometimes about like, family group texts, I wouldn't be opposed to having an A I write responses to that.

Yeah, like do I have to?

Oh, you know, like the the a IA I equivalent is if someone sends a picture, you give it the heart reaction.

It's basically I'm not acknowledging this.

I don't care.

That looks nice.

So would a I like in that setting.

Fine, because I I'm notorious non responder to like all kinds of texts but in particular, like, you know, family type group chat things.

You fire off an A I you know, uh, cook.

Yeah, but what if it's a text that you So the picture.

I don't really If I If I care, I'm gonna respond.

Most texts I get I don't care about So then, you know, having chat GP T would.

I mean, I'm not gonna go buy an iPhone because of this.

I'd buy an iPhone because it stops charging, which it does every two years.

So that's why I need to buy an iPhone.

But like, I think there's plenty of uses.

I don't know.

I upgrade my iPhones, probably like once every four.

Are you gonna Are you gonna use chat GP T mark?

Probably.

I mean, honestly, it's it's not convenient.

Sometimes if you don't need to read every single text, you know what I'm saying?

But it's not gonna make it.

It's not gonna be enough, at least for right now for me to get off this highlight and upgrade my phone.

I've literally heard enough from you.

Let's do the Chechen, but we'll see