Apple still negotiating a good AI deal with OpenAI

Apple once again reached out to Artificial Intelligence (AI) firm OpenAI for a potentially good deal about AI technologies transfer.

Mark Gurman from Bloomberg reports that the latest discussion is related to the terms and conditions but Apple is yet to decide on this matter.

It’s not the first time when these two companies engaged in a business meeting. The previous report reveals early talks that concluded without fruitful results.

OpenAI’s ChatGPT chatbot is based on a large language model (LLM). The company sells its API access to enterprise users and big firms. This chatbot has a text-to-text system and could be used to get a better response in search queries and a voice assistant.

The Cupertino-based tech company is also in discussion with Google for the Gemini large language model. Like OpenAI, Apple has not come to a term with Google, not at the moment.

iOS 18

Apple will release a new iOS version on June 10 at the annual developer conference WWDC24. The new operating system will streamline AI features and app upgrades for maximum productivity.

For example, AI’s inclusion in in-device search could help to sort results with increased diversity. It also helps the user to get a fast user experience. Previous reports suggest Apple is keen on using the dual model strategy with its next mobile processor. It will prioritize on-device AI models and use some parts of the cloud-based AI capabilities.

On-device AI models depend on the in-device chipset for AI task execution and cloud AI only requires a strong internet connection and a deeply integrated interface. Despite no internet connection, on-device AI may not perform complex tasks compared to cloud AI. However, it could be used for App features, which don’t need extreme cloud AI processing.

In that case, Apple will also claim to offer more data privacy as these small models will store training data on the device and not on the server. Inputs suggest that Apple is working on an advanced chipset optimized for AI. Its NPU will have increased power to support AI tasks on-device level.

Eventually, Apple might collaborate with OpenAI and Google for iOS 18 and experience their technologies. It will later drop one and keep the other after learning the benefits of their LLMs.