Will this be a massive money maker for apple or prove to be a giant failure and lead to its undoing? It’s hard to say, but Apple is taxing ChatGPT as well as future AI endeavors.

ChatGPT’s app is now available on the iPhone, but it comes at a price for them. Apple is going to add their usual 30% share of any downloads purchased from their platform.

The app itself is free, but their is a $20 a month subscription which includes faster response times and first in line access to new updates.

But still, the app as is is initially free. Will Apple make a buck off this? Business Insider puts things into perspective noting, “Consider a hypothetical scenario, if ChatGPT Plus were to add 5 million new subscribers on iOS, that would generate roughly $1.2 billion in annual revenue for OpenAI — and Apple would collect 30% of that, collecting $360 million a year.”

Tim Cook noted in a meeting with investors that he does plan to integrate AI tech with Apple, albeit slowly and carefully. Employees at Apple are encouraged to severely limit their use of ChatGPT, for fear that their data could be mined. Cook notes that there are a number of problems that still need to be sorted out before going full throttle.

Apple seems smart to do all this. Keep in mind, they accrued 20 billion revenue in the most recent quarter.

They also seem to have the law on their side. Epic Games sued Apple accusing them of creating a monopoly, making developers use their  own payment platform. Epic Games lost.

Now, Apple has complete control. ChatGPT will need to put up or shut up.

But imagine another scenario. Apple keeps squeezing these companies, Android has better rates. Do all the apps just gravitate away from Apple? Then, with no apps being available, do consumers favor the droid above all else? Never say never.


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