Apple in Talks with OpenAI to Integrate Generative AI Features into Next-Generation iPhone

Insiders reveal that Apple has resumed discussions with OpenAI about utilizing the startup's technology to support new features in the next-generation iPhone slated for release later this year.

According to sources, the two companies have begun discussing a potential agreement and how to integrate OpenAI features into Apple's iOS 18 operating system.

Earlier this year, Apple had negotiated with OpenAI regarding a deal, but interactions between the two have been minimal since then. Apple has also discussed licensing matters related to the Gemini chatbot with Google, a subsidiary of Alphabet (GOOGL-US).

Apple has yet to decide on a final partner and may end up collaborating with both OpenAI and Google. Representatives from Apple, OpenAI, and Google have declined to comment on these reports.

The next version of the iPhone OS will include several new features developed from Apple’s own large language models, such as AI software capable of generating human-like voice messages. However, the company is also seeking additional partners to support functionalities like OpenAI's ChatGPT chatbot feature.

Bloomberg reported in March that another AI startup, Anthropic, might also become a potential partner for Apple.

Leveraging partner technology will help accelerate Apple's entry into the chatbot market and mitigate some risks. Outsourcing generative AI functionalities to other companies could help reduce liabilities on the Apple platform.