Apple taps OpenAI to bring ChatGPT tech to iOS 18

Apple is breaking its classic go-it-alone playbook to bring generative AI to the iPhone.

According to Bloomberg's Mark Gurman, Apple is finalizing a partnership with OpenAI to integrate the startup's chatbot technology into its operating systems, with an official announcement planned for WWDC on June 10th.

Mac chips in the cloud, OpenAI on the phone

Apple has found itself lagging behind in the generative AI arms race, presenting what Gurman calls the biggest challenge of Tim Cook's tenure as CEO.

To bridge the gap, Apple is adopting a hybrid deployment. Local features on iPhones and Macs will run on Apple's homegrown on-device large language models, giving Siri a revamp with better conversational flow and everyday task assistance.

For more demanding features, Apple is turning to its own cloud infrastructure, powered by high-end Mac chips placed inside company data centers.

However, Apple's proprietary tech still cannot match ChatGPT or Gemini as a standalone conversational chatbot. Rather than shipping an inferior in-house bot, Apple is tapping OpenAI to supply chatbot capabilities for iOS 18.

Sam Altman's team is reportedly scrambling to beef up server capacity to handle the massive influx of iPhone users expected later this year.

Why it matters

For iPhone owners, this deal means top-tier AI conversational abilities baked straight into the system without needing third-party workarounds. If Siri has long felt static, OpenAI's engine could finally make voice interactions truly capable.

For Apple, this is a calculated compromise. In our view, teaming up with OpenAI is primarily a strategy to buy time. Shipping an on-device suite alongside an OpenAI partnership gives Apple a viable narrative for WWDC while shielding it from accusations of missing the AI wave entirely.

Yet the risks are palpable. Apple has spent decades preaching end-to-end control and hardware-level privacy. Outsourcing core chatbot interactions to an external startup introduces brand friction and massive data-handling scrutiny. OpenAI's rush to expand backend infrastructure also shows the raw operational strain this influx could create.

Gurman notes that a partnership approach can only go so far. Apple likely views this alliance as a bridge, giving its engineering teams room to develop and deploy an in-house rival down the line.