Apple benefits 30% from AI innovation and costs OpenAI millions

The AI ​​revolution is in full swing and OpenAI’s ChatGPT app is wowing the crowd. But amidst the cheers and applause, a well-known tech giant is quietly pocketing the profits. While Apple may not be at the forefront of generative AI, the company still has an opportunity to grab a big slice of the AI ​​pie.

With the presentation of an iPhone app for ChatGPT, which quickly catapulted itself to the top of the App Store charts, OpenAI’s project got into full swing. Within days, the app ranked #1 in the Free Apps category, an achievement underscored by Apple’s recognition as a “Must Have” app in the Essentials category.

Take part in Apple’s infamous 30 percent discount, known among tech insiders as the “Apple Tax” on all new subscriptions via iOS. The fee has drawn some criticism, particularly from crypto users for whom in-app NFT purchases would become an expensive proposition. Still, OpenAI decided to stick with Apple’s terms and opted for its native in-app purchase system rather than setting up a separate subscription website.

That means Apple takes $6 off the $20 that iOS users pay monthly for each ChatGPT Plus subscription.

Apple CEO Tim Cook has expressed his commitment to integrating AI into Apple’s products. However, this does not mean a departure from the pursuit of profit. Even as privacy concerns simmer beneath the surface, ChatGPT remains available on the App Store, significantly boosting Apple’s services revenue, which hit a record $20.8 billion last quarter.

However, Apple’s 30 percent fee has landed the company in trouble. The US Circuit Court of Appeals 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 its seamless user experience.

As reported by Decrypt, Apple recently won an antitrust case filed by Epic Games, but is now on the verge of allowing third-party app stores in the European Union due to new laws aimed at opening up opportunities for developers.

As this narrative unfolds, it underscores the intricate dance between AI pioneers, big tech, and regulators. For now, Apple seems to have the upper hand, using the innovative work of others to line its own pockets even when embroiled in controversy.

One thing is certain: the AI ​​revolution has only just begun, and with it the struggle to capitalize on it.

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