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TECHNOLOGY

OpenAI Buys Ive's Company for AI Distribution

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OpenAI's acquisition of Jony Ive's gadget company, io, is a strategic move to secure direct user access for its AI products, bypassing the high fees charged by tech giants like Apple and Google for distribution. The generative AI race now hinges on distribution, not just model quality. OpenAI aims to avoid paying substantial sums to Apple or Google for distribution of ChatGPT and other products, as evidenced by Google's extensive reach through Android, Chrome, and Search. This direct distribution allows OpenAI to collect valuable user data for improving its AI models, a crucial element in the competitive AI landscape.

Prepared by Jonathan Pierce and reviewed by editorial team.

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