So, Apple reportedly isn’t paying OpenAI to handle its users’ ChatGPT queries, and OpenAI isn’t paying Apple for its massive distribution. (A billion pockets, y’all!) If that’s the case, what do these two companies get out of their blockbuster partnership for all things iOS and AI?

SAN FRANCISCO — Apple officially launched itself into the artificial intelligence arms race, announcing a deal with ChatGPT-maker OpenAI to use the company’s technology in its products and showing off a slew of its own new AI features.

Apple (NASDAQ:AAPL) is not paying OpenAI for integrating its chatbot ChatGPT into its devices, people briefed on the matter told Bloomberg, and the partnership isn't expected to generate meaningful revenue for either company initially.

Yesterday brought a surprise report that Apple isn’t paying OpenAI for the ChatGPT deal, which will bring the chatbot

Apple gets about $20 billion a year to distribute Google Search on iPhones and other iOS devices. There may be an AI version of this deal brewing.

Apple announced new artificial intelligence-powered tools, including a partnership with OpenAI that allows Siri to surface answers from ChatGPT.

The announcement comes soon after a recent exodus of two senior OpenAI executives focused on AI safety and an open letter signed by 11 of OpenAI’s current and former employees asking for more protection when speaking out about AI safety concerns.

Unlike Google and Microsoft, Apple is using AI to do what the technology has proved it can do rather than unreliable features.

Apple Inc, announced last week that it will be inking a historic deal to incorporate OpenAI into the operating systems of all of their products, a deal that isn’t going to include any kind of monetary compensation on either side of the deal.

Apple could have built its own version of ChatGPT but it didn't. Now it has to rely on the competition for it.