What you need to know
- Apple is slated to roll out its much-anticipated iOS 18.2 update featuring advanced Apple Intelligence features, including ChatGPT and Visual Intelligence.
- The latest iOS 18.2 beta update features a new Upgrade to ChatGPT Plus option in the Settings app, indicating that the iPhone maker is getting a cut for advertising OpenAI's $20 service across its products.
- Apple Intelligence will remain freely available across Apple's tech stack, potentially driving iPhone 16 sales and growing its user base.
Apple, seemingly a late bloomer in the generative AI landscape, is enjoying considerable success in the category. As you might remember, Apple briefly became the world's most valuable company again ahead of Microsoft and NVIDIA with a $3 trillion market cap, shortly after unveiling its new AI strategy — Apple Intelligence.
While the announcement was made during Apple's annual developer conference (WWDC 2024), the flagship AI-powered features recently shipped across its ecosystem, including Writing Tools, Genmoji, and an overhauled Siri AI assistant. This could be attributed to the privacy and security concerns around AI, explaining Apple's delay in unveiling its new AI strategy.
Apple will ship more advanced AI-powered features across its tech stack next month via the iOS 18.2 update, including features like ChatGPT and Visual Intelligence. Interestingly, the iPhone maker is raising eyebrows, especially among investors because it's availing these flagship features to its vast userbase for free.
This comes at a critical time when Apple's iPhone sales are struggling, especially in the Chinese market. It remains unclear whether Apple offering Apple Intelligence for free to users is a strategy to drive iPhone 16 sales.
OpenAI's ChatGPT is the most significant feature to ship with Apple's iOS 18.2 update. The AI-powered chatbot will support Apple's AI, allowing it to handle complex tasks.
Apple might eventually start charging for its AI services, like OpenAI's $20 ChatGPT Plus or Microsoft's Copilot Pro $20 service. Interestingly, Apple has started monetizing its AI services in a not-so-obvious way.
According to 9to5Mac, the latest iOS 18.2 beta features a new Upgrade to ChatGPT Plus option in the Settings app. While the subscription is to OpenAI's $20 ChatGPT Plus service, Apple is advertising the service on its platform, meaning it'll get a cut or commission on subscriptions.
In the grand scheme of things, Apple's AI-powered features will remain accessible, potentially driving iPhone 16 sales while growing Apple Intelligence's user base. Google's Gemini service will likely join the fold in the foreseeable future.
Interestingly, Apple insiders have raised concerns over the iPhone maker's AI strategy, citing fears Apple Intelligence could be two years behind OpenAI's ChatGPT:
"Some at Apple believe that its generative AI technology – at least, so far – is more than two years behind the industry leaders."
Bloomberg's Mark Gurman admits ChatGPT is more accurate than Siri, and can answer 30% more questions. "It’s hard to count Apple out," added Gurman.
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