Apple Inc is set to earn millions by leveraging its firm grasp on the application through fees from successful AI. While Apple is yet to realize a breakthrough in AI, the iPhone manufacturer is set to share in the success of others.
Apple Targets a Share of OpenAI Millions
The announcement comes days after OpenAI launched the ChatGPT iOS application that has dazzled the global crowd. As the Sam Altman-led OpenAI is witnessing applause for the accomplishment, the American tech giant is buoyed to rake in some profits from the AI revolution.
Apple targets to make up for its lag in generative AI by taking a sizable bite comprising 30% of the AI pie. The timing of the fee is coincidental with the unveiling of the ChatGPT version for iPhones.
OpenAI’s venture is in high gear, with the app rising fast to top the free applications category. The achievement prompted Apple to endorse the ChatGPT iOS app as mandatory by placing it within its Essentials category.
Apple Tax Attracts Criticism
Introducing the 30% cut attracts criticism among tech insiders by portraying it as the Apple tax imposed on new subscriptions realized through iOS. Crypto users oppose the fee introduction alleging the in-app NFT acquisition is expensive.
OpenAI sought to comply with the terms laid out by Apple Inc by preferring the native in-app acquisition system rather than creating a distinct subscription website. It implies that Apple Inc is set to earn $3 for every $10 monthly fee the iOS user pays in a ChatGPT Plus subscription.
Apple Seeks to Expand Service Revenue with Fee on AI Apps
Apple Inc.’s move to impose the 30% fee contradicts the pronouncement by Tim Cook reiterating his commitment to integrating AI into the tech’s products. The chief executive’s stance does not imply Apple Inc will forego the profit pursuit.
The decision by Apple Inc to expand service revenue generation from the breakthrough AI utilizing iOS. It portrays acceptance of ChatGPT as a mainstay within the Apple Store. The realization of the 30% fee is set to propel Apple Inc’s profit, which realized $20.8 billion in the past quarter.
Apple Tax Rules as Violating Unfair Competition Law
The imposition of a 30% fee for AI iOS users landed Apple under regulatory scrutiny. Recently the US federal appellate court termed the Apple fee as prohibiting the use of alternative payment methods. The court found that a violation of California’s Unfair Competition law.
The San Francisco firm is buoyed by a seamless user experience between the iOS and ChatGPT systems, thus retaining the built-in payment process despite the unfavorable fees imposed.
The stance by the appellate court to consider the 30% fee as an unfair business practice is set to trigger action against Apple Inc. This is set to cast Apple negatively even after the Cook-led tech emerged victorious in the antitrust case featuring Epic Games.
Apple to Accommodate Third Party Applications in Europe
Apple is set to change its interaction with third-party applications. In particular, the tech giant must comply with the EU’s recent legislation that demands leveling the developers’ field.
Cook admits that as Apple’s narrative unfolds, it emphasizes AI pioneers, regulators, and global tech leaders need to strike a balance in the intricate pursuit of profit and broad usage.
Apple Inc is presently the firm with the upper hand by leveraging its flourishing ecosystem to expand service revenue through innovative AI products of others. The American tech giant is inspired to line up its pockets even when the decision is tagged in controversies.
Certainly, the AI revolution is still in the infancy stage, and the tech giants are scrambling to capitalize on the millions earned from their popularity.
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