Apple's reported agreement with OpenAI could put ChatGPT closer to everyday iPhone users while adding pressure to Microsoft, OpenAI's most important commercial partner. The deal is described as done, but the source article says it is still not known how, or how extensively, Apple will use OpenAI's technology.
Why the Apple and OpenAI deal matters
According to sources from The Information, the deal between OpenAI and Apple is done. That is the central development: Apple appears to have secured access to OpenAI technology as it prepares to show a broader AI strategy at WWDC.
The timing matters because Apple is expected to present AI features as practical tools for ordinary users rather than as a separate technical showcase. The source article says Apple's approach is built around convenience in daily life, with AI features planned for key apps and system functions.
For OpenAI, an Apple deal could potentially be worth billions. The article also says it could strengthen Sam Altman's position inside OpenAI at a time when he is facing increasing criticism.
Microsoft's concern is strategic
Microsoft is reportedly not enthusiastic about the Apple arrangement. The reason given is straightforward: Microsoft wants to win more mainstream customers through OpenAI's technology and its own Copilot offerings.
If Apple places OpenAI capabilities inside iOS, it could give OpenAI a different route to mainstream users. That may overlap with the audience Microsoft hopes to reach through Copilot.
The article says discussions between OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella are said to have taken place. It does not describe the outcome of those discussions, so the clearest reading is that the deal has introduced a new point of tension around who benefits most from OpenAI's reach.
Project Greymatter points to everyday AI
The original report from May 27, 2024, said Apple would use WWDC to focus on AI tools that normal people can use in their daily lives. Bloomberg reporter Mark Gurman identified "Project Greymatter" as the center of that plan.
Project Greymatter is described as a group of AI tools Apple wants to bring into major apps such as Safari, Photos and Notes. It also includes operating system features, including better notifications.
The planned AI features named in the source article include:
- Voice memo transcription
- AI-supported photo editing
- Faster and more accurate search in Spotlight
- Improved web search in Safari
- Automatic reply suggestions for emails and text messages
The article also says Apple is putting significant work into smart summaries. These summaries are expected to help users catch up on missed notifications, texts, sites, messages, files and other media.
Siri is also expected to receive an upgrade, with a more natural-sounding voice and more capabilities from Apple's own Large Language Models. Developer tools such as Xcode are also said to be getting an AI upgrade.
What runs on-device and what goes to the cloud
Apple's plan, as described in the source article, separates lighter AI work from more demanding tasks. Less heavy AI tasks will run directly on devices, while more intense processing will move to the cloud.
For cloud-based work, the article says M2 Ultra chips in data centers will take over. That detail matters because it shows Apple is not presenting AI as only a device-level feature. The reported system uses both local processing and cloud resources, depending on the task.
Privacy is expected to remain central to Apple's marketing. The source article says Apple hopes to capitalize on its huge install base and, as usual, put privacy at the center of its message.
ChatGPT, Gemini and OpenAI's own structure
The source article says ChatGPT will be shown as a chatbot add-on in iOS18. Apple is also working on its own chatbot, but it is not expected to show that yet.
Apple is also said to be working on a Google deal for Gemini, but the source says this probably will not be shown in June. That leaves OpenAI's ChatGPT as the more immediate chatbot element in Apple's expected AI presentation.
The deal also lands while OpenAI's structure remains a live issue. OpenAI currently has an unusual setup in which a nonprofit oversees the for-profit company. The article notes that this structure played a role when Altman was briefly ousted from his position last November.
Altman is also said to be considering turning OpenAI into a regular company, possibly a public one. With a new structure, investors want him to receive a stock package. The article says that would be the first time Altman himself would have a direct financial stake in OpenAI.
For Apple, the reported deal fits a catch-up strategy rather than an attempt to overtake rivals immediately. For Microsoft, it raises a sharper question: if OpenAI technology becomes part of the iOS experience, Microsoft may have to compete for mainstream AI attention against a partner's technology running inside Apple's ecosystem.