Apple received a boost this week when a court ruling allowed its lucrative search agreement with Google to continue. CNBC suggests the decision highlights a simple yet potentially powerful strategy for Apple in the artificial intelligence space, summed up in three words: pay to play.
The $20 billion search deal with Google has long been a cornerstone of Apple’s revenue. With the ruling ensuring the agreement remains intact, analysts are considering how the company might leverage its position in AI without needing to develop technology in-house.
CNBC commentator Jim Cramer explained that Apple has always had a clear AI strategy, even if it is subtle. “Yesterday, Apple had no cards. Today they have all of the cards. Turns out Apple always had an AI strategy: pay to play. You pay them, not they pay you,” Cramer said.
Julie Coleman of CNBC elaborated on the concept, noting that Apple no longer needs to negotiate deals with hyperscalers or AI startups. Instead, major AI firms will now have to compete for Apple’s platform, which includes more than one billion active iPhone users worldwide. According to Cramer, this shifts the power dynamics in Apple’s favour.
“There isn’t a clear winner right now in the chatbot space, but if you can pay Apple a fortune to make yours the default, someone’s going to write that check,” he added.
The approach is straightforward. Apple does not need to focus on building its own AI chatbot or developing complex machine learning models. Its large and engaged user base alone gives it leverage to generate revenue from companies that want direct access to iPhone users. In effect, Apple becomes a gatekeeper for AI services, and companies are willing to pay for the privilege of being featured or integrated.
This strategy aligns with Apple’s broader business model, which relies on high-margin services and platform control rather than simply competing on technology alone. By charging AI firms to reach its ecosystem, Apple can expand its role in the AI market while maintaining its focus on privacy, user experience, and device integration.
Apple’s “pay to play” approach may not be flashy, but analysts suggest it could prove highly profitable, making the company a key player in AI without needing to become a chatbot developer itself.
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