
Apple's partnership with OpenAI allows users to access different versions of ChatGPT through Apple devices. Users can access the free version of ChatGPT without having their information logged. Additionally, ChatGPT's paying users can log into their accounts to access the premium version. This integration is part of Apple's new AI framework, Apple Intelligence, which aims to provide users with personalized assistance across various tasks on their devices.

According to Usama Fayyad, Apple's partnership with OpenAI is considered an admission of weakness because it shows that Apple has fallen behind in developing its own AI technology. Apple's digital assistant, Siri, which was released in 2011, hasn't been up to the mark for years. By partnering with OpenAI and integrating ChatGPT, Apple is essentially admitting that it hasn't invested enough in its AI development and is now trying to catch up with its competitors.

Apple's strategy with OpenAI potentially creates a marketplace effect among AI service providers by establishing a competitive environment. By announcing their partnership with OpenAI and expressing openness to integrating other AI services like Google's Gemini, Apple sends a signal to AI providers that they are looking for the best available technology, and they are willing to consider multiple options.
This approach encourages AI service providers to compete for Apple's business, which could result in better technology, more innovation, and potentially more favorable terms for Apple. The marketplace effect drives AI companies to differentiate themselves and showcase their capabilities, ultimately benefiting Apple as they get to choose from a variety of cutting-edge AI technologies to enhance their products and services.