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Last updated Nov 29, 2025
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Jason @ 00:42:03Wrong
techai
Apple will monetize its system-level default large language model (LLM) integration on iOS/macOS by running a paid competition among model providers (e.g., OpenAI, Google, others) and awarding default placement to the highest bidder, similar to its existing default search-engine deals.
Obviously, it doesn't take a genius to predict that Apple is going to auction off the LLM integration, I think, to the highest bidder. They did that with the search deal.View on YouTube
Explanation

Available reporting shows that Apple has not auctioned off its system‑level LLM integration to the highest bidder, nor set up a search‑style paid competition for default placement.

  1. OpenAI / ChatGPT integration: When Apple announced Apple Intelligence and system‑wide ChatGPT integration at WWDC 2024, multiple reports (summarizing Bloomberg’s Mark Gurman) stated that neither Apple nor OpenAI is paying the other for the deal, and that the arrangement is not expected to generate meaningful revenue initially. Instead, Apple grants OpenAI exposure to hundreds of millions of devices, while Apple gets ChatGPT features for free. This is explicitly contrasted with the lucrative Google‑as‑default‑search deal and described as not involving direct payments. (gadgets360.com) Apple Intelligence documentation likewise describes ChatGPT as an opt‑in, system‑wide integration, free to users, with optional sign‑in for paid ChatGPT features, and notes Apple plans to support other models in the future. (en.wikipedia.org) None of this resembles an auction for default status.

  2. Future revenue‑sharing, not auctions: Follow‑on coverage notes Apple may in the future receive a cut from third‑party LLM vendors who monetize on Apple platforms (e.g., ChatGPT Plus subscriptions via in‑app purchase), and that it is in talks with other LLM providers such as Google and Anthropic. But these are described as potential revenue‑sharing or partnership models, not as a bidding war for default placement. (thedailyjagran.com) No source indicates Apple has run or announced a formal auction for the system‑level LLM slot.

  3. Google Gemini / Siri deal structure: In late 2025, Bloomberg/Reuters reporting indicates Apple is paying Google roughly $1 billion per year for a custom Gemini model to power a redesigned Siri as part of Apple Intelligence, after evaluating OpenAI and Anthropic. (reuters.com) That is the opposite direction of the classic Google‑Search‑on‑iPhone arrangement (where Google pays Apple); it reflects Apple choosing a vendor and paying for access, not running a highest‑bidder auction in which model providers pay Apple for default placement.

Across the 2024–2025 coverage, there is no evidence that Apple has auctioned off LLM integration rights or default status to the highest bidder, or that OpenAI, Google, or others have paid Apple for that privilege. Instead we see (a) a non‑monetary, opt‑in OpenAI integration and (b) Apple itself paying Google for Gemini. That contradicts the specific prediction that Apple would monetize its default LLM slot via a paid auction similar to its Google search deal.