Artificial intelligence (AI) startup and ChatGPT developer OpenAI is now preparing to take legal action against tech giant Apple as the two-year-old partnership between the two companies has reportedly soured.
Bloomberg reported Thursday that OpenAI, which has not seen the expected benefits of the deal with Apple, is now actively working with an outside legal firm on several options that could be formally implemented in the near future. These options include sending a notice to the iPhone manufacturer about the alleged breach of contract without having to file a full lawsuit to begin with. Citing sources, the report said that OpenAI recently brought in an outside firm to help with the situation.
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Why is OpenAI considering legal options against Apple?
The creator of ChatGPT believed that the partnership between the two companies, which integrated the chatbot into Apple’s software, would bring more users to subscribe to ChatGPT. The firm also expected deeper integration into more Apple apps and a premium placement within the Siri assistant.
Instead, Apple uses OpenAI technology across its operating systems, and the features are said to be hard to find. An OpenAI executive told Bloomberg, “We did everything from a product standpoint,” adding, “They didn’t, and worse, didn’t even make an honest effort.”
Apple’s concerns about OpenAI
The tech giant has reportedly raised concerns about OpenAI, including whether the AI startup is doing enough to protect user privacy. Meanwhile, the startup’s recent push for the device, an effort led by former Apple executives, has reportedly angered the iPhone maker.
While no final decision has yet been made, OpenAI hopes to resolve its issues with Apple out of court. Separately, any legal action won’t come until billionaire Elon Musk’s lawsuit is concluded.
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The Apple-OpenAI partnership
The recent development marks a notable rift between the two Silicon Valley companies that once seemed headed for a broad strategic partnership. In June 2024, OpenAI CEO Sam Altman sat in the audience at Apple’s campus when the deal was announced, with software chief Craig Federighi describing the startup as a “pioneer and market leader” in artificial intelligence.
As part of their deal, iPhone users would get a way to sign up for ChatGPT membership directly from the iOS settings menu, with the tech giant taking a portion of the subscription revenue generated through its platforms.
The arrangement also allowed users to access ChatGPT results within Siri and use AI technology to generate text and analyze surrounding objects through the iPhone’s Visual Intelligence feature. This partnership later expanded when Apple added ChatGPT as an option for creating images in its Image Playground app and for analyzing on-screen content.
OpenAI executives also believed the arrangement would eventually become a major source of revenue as the company works toward an initial public offering. But ties have since soured, and OpenAI’s attempts to renegotiate the deal have also stalled.
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The Sam Altman-led AI startup believed the deal could generate billions of dollars a year in subscriptions, but that hasn’t come close. He also now believes that Apple’s implementation has damaged OpenAI’s brand with customers.
OpenAI will lose its unique role with Apple
In the coming months, OpenAI is expected to lose its exclusive role in Apple software. According to Bloomberg News, the iPhone maker is opening up its platforms to a number of competing AI providers later this year.
This will allow users to install multiple AI chatbots from the App Store and use them within Siri for tasks such as answering questions, generating text, and creating images.
Apple is reportedly testing integration with Claude and Google Gemini from Anthropic PBC as part of the rollout. A redesigned Siri with these capabilities, expected in iOS 27, is set to be unveiled at Apple’s Worldwide Developers Conference on June 8.
