Apple and OpenAI about to final deal for generative AI: Report

Apple and OpenAI are about to finalize a deal for generative AI features for the upcoming iOS operating system versions including cloud-based AI processing says a report from Bloomberg.

Both firms are now working on terms of the agreement to make this technology sharing happen. These AI technologies likely be used in iOS 18 and the next iPhone. Generative is a major milestone for Apple but the company is playing soft on its step. The iPhone maker could approach a partial integration of cloud-processed AI features alongside on device AI.

It has been working on AI stuff since last year. It reflects on the recent release of the M4 chipset, a second-generation 3nm processing technology. It has a dedicated Neural Processing Unit (NPU) with more transistors and the capability to process operations per second.

Similarly, Apple will develop its next generation of Bionic chips for the iPhone. Previous reports suggest that the new A18 Pro will be equipped with more transistors than the past A-series chip. These will work in tandem with the iOS 18 operating system to provide AI features for system apps such as generative transcription for Notes and the Voice Memo app.

This is just one example as Apple has more AI features planned for system apps. On the other hand, the cloud-based AI features powered by the OpenAI model will help the company process real-time information tasks such as improving the search feature.

Despite closing talks with OpenAI, Apple is reportedly talking to Google for the Gemini model. However, an agreement and terms are not finalized at the moment. We might see negotiation news soon enough.