Enlarge (credit: OpenAI / Apple / Benj Edwards)

On Monday, Apple announced it would be integrating OpenAI's ChatGPT AI assistant into upcoming versions of its iPhone, iPad, and Mac operating systems. It paves the way for future third-party AI model integrations, but given Google's multi-billion-dollar deal with Apple for preferential web search, the OpenAI announcement inspired speculation about who is paying whom. According to a Bloomberg report published Wednesday, Apple considers ChatGPT's placement on its devices as compensation enough.

"Apple isn’t paying OpenAI as part of the partnership," writes Bloomberg reporter Mark Gurman, citing people familiar with the matter who wish to remain anonymous. "Instead, Apple believes pushing OpenAI’s brand and technology to hundreds of millions of its devices is of equal or greater value than monetary payments."

The Bloomberg report states that neither company expects the agreement to generate meaningful revenue in the short term, and in fact, the partnership could burn extra money for OpenAI, because it pays Microsoft to host ChatGPT's capabilities on its Azure cloud. However, OpenAI could benefit by converting free users to paid subscriptions, and Apple potentially benefits by providing easy, built-in access to ChatGPT during a time when its own in-house LLMs are still catching up.

Enlarge / He isn't using an iPhone, but some people talk to Siri like this.

On Monday, Apple premiered "Apple Intelligence" during a wide-ranging presentation at its annual Worldwide Developers Conference in Cupertino, California. However, the heart of its new tech, an array of Apple-developed AI models, was overshadowed by the announcement of ChatGPT integration into its device operating systems.

Since rumors of the partnership first emerged, we've seen confusion on social media about why Apple didn't develop a cutting-edge GPT-4-like chatbot internally. Despite Apple's year-long development of its own large language models (LLMs), many perceived the integration of ChatGPT (and opening the door for others, like Google Gemini) as a sign of Apple's lack of innovation.

"This is really strange. Surely Apple could train a very good competing LLM if they wanted? They've had a year," wrote AI developer Benjamin De Kraker on X. Elon Musk has also been grumbling about the OpenAI deal—and spreading misconceptions about it—saying things like, "It’s patently absurd that Apple isn’t smart enough to make their own AI, yet is somehow capable of ensuring that OpenAI will protect your security & privacy!"

Enlarge / Helen Toner, former OpenAI board member, speaks during Vox Media's 2023 Code Conference at The Ritz-Carlton, Laguna Niguel on September 27, 2023. (credit: Getty Images)

In a recent interview on "The Ted AI Show" podcast, former OpenAI board member Helen Toner said the OpenAI board was unaware of the existence of ChatGPT until they saw it on Twitter. She also revealed details about the company's internal dynamics and the events surrounding CEO Sam Altman's surprise firing and subsequent rehiring last November.

OpenAI released ChatGPT publicly on November 30, 2022, and its massive surprise popularity set OpenAI on a new trajectory, shifting focus from being an AI research lab to a more consumer-facing tech company.

"When ChatGPT came out in November 2022, the board was not informed in advance about that. We learned about ChatGPT on Twitter," Toner said on the podcast.

Enlarge (credit: Getty Images)

On Monday, OpenAI announced the formation of a new "Safety and Security Committee" to oversee risk management for its projects and operations. The announcement comes as the company says it has "recently begun" training its next frontier model, which it expects to bring the company closer to its goal of achieving artificial general intelligence (AGI), though some critics say AGI is farther off than we might think. It also comes as a reaction to two weeks of public setbacks for the company.

Whether the aforementioned new frontier model is intended to be GPT-5 or a step beyond that is currently unknown. In the AI industry, "frontier model" is a term for a new AI system designed to push the boundaries of current capabilities. And "AGI" refers to a hypothetical AI system with human-level abilities to perform novel, general tasks beyond its training data (unlike narrow AI, which is trained for specific tasks).

Meanwhile, the new Safety and Security Committee, led by OpenAI directors Bret Taylor (chair), Adam D'Angelo, Nicole Seligman, and Sam Altman (CEO), will be responsible for making recommendations about AI safety to the full company board of directors. In this case, "safety" partially means the usual "we won't let the AI go rogue and take over the world," but it also includes a broader set of "processes and safeguards" that the company spelled out in a May 21 safety update related to alignment research, protecting children, upholding election integrity, assessing societal impacts, and implementing security measures.