From: allin

Apple and OpenAI have reportedly reached an iPhone deal, with an official announcement expected at Apple’s Worldwide Developers Conference (WWDC) [01:03:35]. This partnership involves integrating ChatGPT into iOS [01:03:43].

Details of the Partnership

The integration of ChatGPT into iOS signifies that Apple is, at least initially, outsourcing its AI chatbot development [01:03:45].

Benefits for Both Companies

  • OpenAI: Gains access to over a billion iPhone users [01:03:53].
  • Apple: Secures native integration of a top-tier language model [01:03:56].

Deal Outlook

While specific terms are unclear, it is widely believed to be a short to mid-term arrangement [01:03:59]. Apple is expected to develop its own AI chatbot in the future, as its internal technology is not yet ready for prime time [01:03:59].

AI Features in Apple Ecosystem

Apple also intends to make Siri AI-powered and introduce new AI features across its ecosystem [01:04:10]. Siri is expected to delve deeper into apps, potentially allowing users to execute tasks like ordering from DoorDash or Uber Eats directly through voice commands [01:04:16].

Previously, Siri’s limited language understanding has hindered its utility [01:04:01]. However, integrating the conversational capabilities of models like ChatGPT 4o would make Siri a powerful agent capable of performing complex tasks beyond simple queries or alarms [01:04:07].

Internal Concerns at Apple

Apple executives have expressed concerns about potential reputational damage from a “rogue chatbot” [01:03:30]. Some individuals within the company hold a philosophical aversion to having a chatbot at all [01:03:36].

Impact on iPhone Sales

The integration of a language model, particularly one that offers local, privacy-protected processing and requires more memory or a dedicated chip, could provide a compelling reason for users to upgrade their iPhones [01:05:05]. A “super Siri” that efficiently handles tasks might reinvigorate the iPhone franchise [01:05:20].

However, it is speculative whether this will drive upgrades, as the ideal form factor for scaled consumer AI applications is not yet clear [01:05:38]. The value proposition of current iPhones, often centered around features like camera lenses, may not align with the needs of AI [01:07:31]. Future AI experiences might be driven by more discreet devices like earbuds with companion phones, rather than expensive, high-spec smartphones [01:07:41].

Data Privacy and App Economy

The potential for a personal LLM on an iPhone that utilizes local data (iMessages, documents, photos, user behavior) could offer extraordinary personalized experiences [01:08:05]. However, this would require a fundamental change to the iOS SDK and could create an “outrageous” tax on the existing app economy if Apple were to collect and monetize such data [01:08:48].