Apple renews talks with OpenAI for iPhone generative AI features

Apple Inc. has restarted discussions with OpenAI about using the startup’s technology to power some new features coming to iPhones later this year, according to people familiar with the matter. The two companies have begun discussing the terms of a potential agreement and how OpenAI features would be integrated into Apple’s iOS 18, the next iPhone operating system, said the people, who asked not to be identified because the deliberations are private.

The move marks the resumption of talks between the companies. Apple talked to OpenAI about a deal earlier this year, although work between the two parties has fallen through the cracks since then. Apple is also in discussions with Alphabet Inc’s Google about licensing the company’s Gemini chatbot.

Apple hasn’t made a final decision on which partners it will use, and there’s no guarantee a deal will be reached. It’s possible that the company eventually reaches an agreement with both OpenAI and Google – or chooses another provider altogether. Representatives for Apple, OpenAI and Google declined to comment.

The next iPhone operating system will include several new features based on Apple’s in-house large language models — AI software that can generate human-sounding text — but the company is also partnering to power a chatbot-like feature similar to OpenAI’s ChatGPT. Is also searching for. Bloomberg first reported on the discussions in March, which also involve AI startup Anthropic.

The latest development comes about a month and a half before Apple’s Worldwide Developers Conference, where it is set to introduce new AI software and services. The company plans to integrate its features into its devices more seamlessly than rival AI offerings, with better privacy protections.

Last year, Cook said that he personally uses OpenAI’s ChatGPT, but indicated that “there are a number of issues that need to be resolved.” He promised that new AI features will come to Apple’s platforms on a “very deliberate” basis.

Relying on partners will help Apple advance in chatbots and avoid some risks. By outsourcing generative AI features to another company, Cook is potentially reducing liability for its platform.

© 2024 Bloomberg LP

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