Apple is not paying OpenAI, because it believes that putting its technology in front of hundreds of millions of users is equal to or even better than any kind of monetary payment, according to Bloomberg.
With the sheer amount of money that the rich are throwing at OpenAI via investment firms, they don’t need nor want to charge imo. The fact that they’re being built into Apple’s ecosystem and are getting name-dropped to people inside of iOS is kinda what their investors want.
It’s the age old “walmart opens and operates at a loss for 2 years to force others out of business, then jacks the price” model.
Investors want them to cement this as The AI company & brand so that once it gets giant and starts to be profitable just by being the biggest gorilla in the room, the shares they bought are worth more.
So what I’m trying to say is that our version of capitalism is perfect and makes lots of sense and is in no way insane and degenerate.
That might be their internal reasoning but Apple will very quickly move to have these capabilities in house. Apple has been working on machine learning for a while but they don’t collect data so they are unable to build these LLMs.
For now it makes sense for Apple to leave the liability of basing these LLMs on copyrighted data. If OpenAI losses those court battles, they take the hit for services rendered to Apple. None of that liability transfers to Apple.
Meanwhile, Apple is going about this the Apple way by encouraging developers to integrate their apps into new frameworks being added. This gives them access to user data directly from the source allowing them to build personalized models.
These models will likely be far more useful to the day to day mundanity of life than the hallucinogenic encyclopedia that is ChatGPT.
With the sheer amount of money that the rich are throwing at OpenAI via investment firms, they don’t need nor want to charge imo. The fact that they’re being built into Apple’s ecosystem and are getting name-dropped to people inside of iOS is kinda what their investors want.
It’s the age old “walmart opens and operates at a loss for 2 years to force others out of business, then jacks the price” model.
Investors want them to cement this as The AI company & brand so that once it gets giant and starts to be profitable just by being the biggest gorilla in the room, the shares they bought are worth more.
So what I’m trying to say is that our version of capitalism is perfect and makes lots of sense and is in no way insane and degenerate.
That might be their internal reasoning but Apple will very quickly move to have these capabilities in house. Apple has been working on machine learning for a while but they don’t collect data so they are unable to build these LLMs.
For now it makes sense for Apple to leave the liability of basing these LLMs on copyrighted data. If OpenAI losses those court battles, they take the hit for services rendered to Apple. None of that liability transfers to Apple.
Meanwhile, Apple is going about this the Apple way by encouraging developers to integrate their apps into new frameworks being added. This gives them access to user data directly from the source allowing them to build personalized models.
These models will likely be far more useful to the day to day mundanity of life than the hallucinogenic encyclopedia that is ChatGPT.