OpenAI demonstrated its new iPhone integration on Wednesday as it rolled out iOS 18.2 to users, bringing ChatGPT directly to Siri, as well as writing tools and camera functionality.

The feature update, unveiled on the fifth day of OpenAI’s “12 Days of Shipmas” product launches, marks a rare opening of Apple’s core iPhone features to external software. ChatGPT can now process commands through Siri and complete tasks across the operating system.

“If Siri thinks it would be helpful to hand a task to ChatGPT, it can just hand it off,” explained Dave Cummings, technical lead for ChatGPT at OpenAI, during Wednesday’s demonstration. The system works through three main paths: Siri voice commands, writing tools for text editing, and visual intelligence via the camera control button.

Users can access basic ChatGPT features without an account, but premium features require a subscription.

An insight into Apple’s AI strategy: Why the iPhone maker chose OpenAI instead of developing its own

The partnership addresses critical challenges for both companies. Apple is struggling to keep up with competitors in AI development despite its $3 trillion market cap. Google’s Gemini and Anthropic’s Claude have demonstrated capabilities that surpass anything in Apple’s current AI portfolio.

“We want ChatGPT to be truly frictionless and easy to use everywhere,” OpenAI CEO Sam Altman said during Wednesday’s press conference. “We love Apple devices and so we are very, very proud of this integration.”

The timing of this release could boost sales of Apple’s high-end devices at a crucial time. While the company doesn’t break out AI-specific sales, limiting these features to iPhone 15 Pro models and newer devices is a compelling reason for consumers to upgrade.

This strategy reflects Apple’s previous pattern of using advanced features – such as ProRAW photography or ProRes video – to drive adoption of its premium devices, whose margins are estimated at over 60%.

The move also positions Apple differently in the AI ​​race. Rather than competing directly with Google and Microsoft to develop core AI models, Apple is leveraging partnerships to integrate AI into its ecosystem while maintaining its focus on hardware and user experience.

This approach could prove more profitable in the short term as training AI models remains hugely expensive and the return on investment is uncertain.

The $5 billion question: How OpenAI plans to monetize its million-user iPhone base

For OpenAI, the partnership provides immediate access to Apple’s installed base of more than one billion iPhone users. This comes at a crucial time for the AI ​​company, which is under pressure to generate revenue while managing huge computing costs. According to recent reports, OpenAI’s computing spending could reach $5 billion annually by 2025.

The partnership also comes as part of OpenAI’s broader monetization efforts. The company recently announced a partnership with defense firm Anduril and launched a ChatGPT Pro tier for $200 per month. Sarah Friar, CFO of OpenAI, has indicated that the company is looking for advertising revenue streams.

Enterprise AI spending could shift as ChatGPT makes its way to corporate iPhones

For enterprise users, this integration represents more than just a new iPhone feature. Many companies have invested heavily in standalone AI solutions, often paying for multiple services such as Jasper, Claude or enterprise ChatGPT licenses.

Native iPhone AI integration could consolidate these tools and potentially reshape how companies approach mobile productivity. Companies could shift their enterprise software budgets from specialized AI applications to platforms that integrate seamlessly into the Apple ecosystem.

The integration could also change the competitive landscape. Google, which pays Apple billions annually to remain the iPhone’s default search engine, may need to rethink its mobile strategy. The search giant has already accelerated its AI efforts, recently launching Gemini across all of its products.

Apple’s reputation for putting privacy first influenced the design of the integration. The system requires explicit user permission before sharing data with ChatGPT, and anonymous usage options protect user privacy. All processing occurs on-device for basic functions, with advanced functions requiring cloud computation.

The Future of Mobile AI: A New Platform War Begins

The partnership underscores a broader shift in computing where AI capabilities are becoming as fundamental as operating systems themselves. We are seeing the emergence of a new platform war, but unlike the mobile operating system battles of the 2000s, this one is focused on AI Integration.

The stakes are much higher: Whoever controls the AI ​​interface is likely to control the primary way users interact with the technology in the coming years. Apple’s decision to partner rather than compete suggests that the company has learned from history: sometimes it’s more valuable to be the platform that hosts the best services than to try to develop everything yourself.

OpenAI has more announcements planned as part of its “12 Days of Shipmas” campaign. But the Apple partnership could prove to be the most consequential, changing the way a billion users interact with AI technology every day.

Neither company will exchange cash payments in the initial partnership, as Apple sees the enormous sales potential of its devices as sufficient compensation for OpenAI. However, future revenue sharing arrangements are being explored, particularly in relation to ChatGPT’s premium subscriptions.

For OpenAI, the deal offers something potentially priceless: seamless access to hundreds of millions of Apple devices. For Apple, it’s a strategic move that keeps the company competitive in AI while maintaining the flexibility to partner with other providers like Google and Anthropic – suggesting that Apple is positioning itself not as a combatant in the emerging AI platform wars, but as Battlefield positioned yourself.