Apple Intelligence Supercharged With The Integration of ChatGPT into its IOS 18.2 Update

Apple is set to integrate OpenAI’s ChatGPT with its devices this December as part of the iOS 18.2 update, enhancing Siri and several other features with advanced AI capabilities.

Integration of ChatGpt into the Apple Ecosystem

The best part about ChatGPT access is that it is free of charge, and users won't need to have an OpenAI account to run it within your phone. Apple has also made sure that users get great ChatGPT privacy when accessing it through the Siri interface.

However, Apple also lets you use your existing ChatGPT account. This might be a better option for some users, especially those on a paid subscription.

IOS 18.2 beta testers were the first to experience how this partnership could benefit OpenAI, as Apple is now offering an in-app option for ChatGPT Plus subscriptions in the Settings menu, priced at $20 per month. This convenient access could drive more users to OpenAI’s premium subscription, especially given the limitations of the free ChatGPT version.

Free ChatGPT users won’t gain access to the latest AI models, such as OpenAI’s o1-preview, or premium features like Advanced Voice Mode. Their access to DALL-E is also capped at two image generations per day, and their messaging limits with ChatGPT are more restrictive than those of premium users.

Apple betting that users will upgrade to newer Iphones with New AI capability

One of the most pressing questions about the Apple-OpenAI partnership is how both companies intend to monetize it. Reportedly, Apple isn’t paying OpenAI directly but instead is offering broad exposure through integration into iOS. If enough users upgrade to ChatGPT Plus through the Settings app, this exposure could justify the partnership for OpenAI. However, if not, the influx of free users could sharply increase OpenAI’s operating costs.

It’s still uncertain if Apple will take a revenue share from ChatGPT Plus signups made through its platform, but the company may simply be betting that top-tier AI features will encourage customers to upgrade to new iPhones.

Apple keeps its options open

Apple is also reportedly in talks with Google on an integration with Google's Gemini. If that comes to pass, I would guess there will be some kind of in-setting upgrade path to Gemini Advanced, too.

Meanwhile, OpenAI is navigating rapid growth and executive turnover. Despite initially planning to join OpenAI’s latest $6.6 billion funding round, Apple reportedly backed out after the sudden departure of OpenAI’s CTO, Mira Murati.