May 24, 2023
Apple’s in-app purchasing system is facilitating the availability of OpenAI’s premium subscription service, ChatGPT Plus, to users. Based on customary practice, Apple receives a 30% share from the subscription fee. Priced at $20 per month, ChatGPT Plus provides subscribers with faster response times and priority access to new features.
The arrangement has drawn attention from Bernstein tech analysts, who characterize Apple’s portion as a “30% tax.” This has raised concerns about the level of dominance Apple holds in the tech industry. Despite Apple’s relatively slower progress in artificial intelligence (AI) development and limited contributions to public research in this field, it stands to gain substantial profits from ChatGPT Plus without actively engaging in its creation.
In a hypothetical scenario, the potential earnings of Apple are highlighted by considering the impact of five million new subscribers for ChatGPT Plus on iOS alone. If this were to occur, the resulting annual revenue would reach an impressive $1.2 billion. With Apple’s 30% share, OpenAI’s creation would generate a significant $360 million per year.
Nevertheless, there are those who argue against undermining Apple’s role in this matter. Those of this school of thought emphasizes the invaluable contribution made by Apple, pointing out the company’s history of revolutionizing the technology landscape. They further went on to argue that Apple incurs substantial costs associated with storing, reviewing, organizing, surfacing, and distributing apps to over one billion users.
The sources for this piece include an article in BusinessInsider.
