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Apple's OpenAI Deal: No Immediate Revenue, Future Potential Revealed
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Kristoffer Lindström
June 13, 2024
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INSIGHT
The Federal Reserve has signaled a sole interest rate cut in 2024, a downturn from its previous March anticipation of three cuts. The new projection reportedly showcases the Fed's intention to uphold a 'higher for longer' policy. The central bank’s current interest rates will remain unaltered, standing within a 5.25%-5.5% range. Core inflation is expected to touch 2.8% this year, higher than March's projection. Meanwhile, the unemployment rate will remain steady at 4.0% in 2024.
💡 Insight: The Fed's revised "dot plot" and economic projections signal a more cautious approach to rate cuts in 2024, reflecting ongoing inflation challenges and a "higher for longer" stance. Market participants now considerably anticipate the first rate cut by September.
Apple is set to integrate OpenAI's ChatGPT into its devices, but will not pay for access to the product, nor generate significant revenue from the partnership in the short term, according to insiders. The deal will give users access to an advanced AI chatbot and may lead to more uptake of paid ChatGPT versions. Apple is also reportedly considering partnerships with other chatbots, including Google's Gemini and Anthropic.
💡 Insight: Apple's strategic integration of ChatGPT bypasses typical revenue-sharing, securing access to advanced AI capabilities for its ecosystem while positioning OpenAI within a vast user base. Potential additional partnerships with Google and Anthropic suggest Apple is leveraging diverse AI collaborations to enhance its AI offerings, despite near-term revenue impacts.
BRIEF
AI search firm Perplexity, recently accused by Forbes of misusing its content, was already devising revenue-sharing plans with premium publishers. These agreements would offer recurring earning opportunity for media houses, unlike OpenAI, which pays upfront for using their data for new AI models. Perplexity has yet to disclose specific details, however, Dmitry Shevelenko, the company's chief business officer, affirmed imminent unveiling.
In a recent interview, Apple's CEO Tim Cook spoke about the company's approach to AI, emphasizing privacy and AI's potential to improve lives. He also mentioned Apple's partnership with OpenAI to integrate ChatGPT into iOS 18 while reminding that AI might eventually reduce reliance on devices. Cook focused on Apple's forward-thinking approach rather than dwelling on his personal legacy.
Tesla shareholders have re-approved Elon Musk's 2018 remuneration package that a Delaware judge had earlier invalidated. Although the vote does not reinstate Musk's pay immediately, it signifies broad investor support for the deal. Shareholders also backed Tesla's re-incorporation in Texas from Delaware. The final results will be disclosed during a shareholder meeting in Austin.
OpenAI's annualized revenue has more than doubled to $3.4 billion in just half a year, indicating substantial growth acceleration for the ChatGPT developer's business despite rising competition. The rapid rise reveals the swift integration of OpenAI's conversational AI and chatbots by both businesses and individuals.
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