The AI revolution is in full swing, with OpenAI’s ChatGPT app dazzling the crowd. But amid the cheers and applause, a familiar tech giant is quietly raking in the profits. While Apple may not be at the forefront of generative AI, it has a way of taking a big bite of the AI pie.
The OpenAI business shifted into high gear with the opening of a iPhone app for ChatGPTwho skilfully skimmed the top of the App Store charts. Within days, the app claimed the title of number one in the free apps category, an achievement further highlighted by Apple’s endorsement as a “must have” app under the category “Essentials”.
Enter Apple’s infamous 30% cut, known to tech insiders as “Apple tax,” on all new subscriptions made through iOS. The fee has drawn its fair share of criticism, especially from crypto users for whom in-app NFT purchases can be a costly affair. However, OpenAI chose to follow Apple’s terms, opting for a native in-app purchase system instead of setting up a separate subscription website.
This means that for every subscription to ChatGPT Plus, Apple will take $6 out of the $20 paid monthly by iOS users.
Tim Cook, Apple’s CEO, has expressed his commitment to integrating AI into Apple products. However this does not mean a shift away from the pursuit of profit. Although data privacy is related to the bubble at the bottom, ChatGPT remains available in the App Store, which significantly strengthens the revenue of Apple’s service, which has reached a record. $20.8 billion in the most recent quarter.
Apple’s 30% fee, however, has landed the company in hot water. A US federal appeals court ruled that Apple violated California’s Unfair Competition Law by banning alternative payment methods. Despite this, OpenAI appears to be sticking with Apple’s built-in payment processor, likely favoring a smoother user experience.
as reported by DecryptApple recently emerged victorious in an antitrust lawsuit filed by Epic Games, but it is now on the verge of allowing third-party app stores in the European Union due to new legislation aimed at to level the playing field for developers.
As this narrative unfolds, it highlights the intricate dance between AI pioneers, big tech, and regulators. At the moment, Apple seems to have the upper hand, using the innovations of others to line its own pockets, even while mired in controversies.
One thing is certain: the AI revolution has just begun, and so is the scramble to exploit it.
