Apple Inc. has renewed discussions with OpenAI about using the startup’s technology to power some new features coming to the iPhone later this year, according to people familiar with the matter. The two companies have begun discussing the terms of a possible agreement and how OpenAI features will be integrated into Apple’s iOS 18, the next iPhone operating system, the people said, speaking on condition of anonymity because the discussions are private.

The move marks a renewed dialogue between the companies. Apple had spoken to OpenAI about a deal earlier this year, though work between the two sides has been minimal since then. Apple also remains in discussions with Alphabet Inc’s Google. regarding the licensing of this company’s Gemini chatbot.

Apple has not made a final decision on which partners it will use, and there is no guarantee that a deal will go through. It’s possible the company will eventually reach an agreement with both OpenAI and Google — or choose another vendor entirely. Representatives for Apple, OpenAI and Google declined to comment.

The next iPhone operating system will include several new features based on Apple’s internal large language model — AI software that can generate human-sounding text — but the company is also looking for partners to power a chatbot-like feature similar to OpenAI’s ChatGPT . Bloomberg first reported in March about the discussions, which include the launch of AI Anthropic.

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

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

Relying on partners would help accelerate Apple’s entry into chatbots and avoid some risks. By outsourcing the generative AI functions to another company, Cook is potentially reducing responsibility for its platform.

© 2024 Bloomberg LP


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