OpenAI is reportedly considering legal action against Apple, feeling "burned" by the integration of ChatGPT into Siri and other Apple services. Insiders suggest OpenAI believes Apple intentionally failed to promote the integration, leading to a "strained" partnership. OpenAI is disappointed with how the integration was designed, particularly the requirement for users to explicitly say "ChatGPT" to invoke the feature and the limited information displayed in ChatGPT outputs within Siri, which they believe hinders user access and brand visibility.
OpenAI executives expected the deal to generate billions of dollars annually in subscriptions, comparing it to Apple's lucrative search deal with Google. However, this expectation has not been met, with sources indicating lower-than-expected revenue and limited visibility for ChatGPT features. OpenAI claims Apple did not fully explain the integration details, requiring a "leap of faith" from them, which they now regret.
The core of the dispute revolves around who benefits economically when AI models are embedded in dominant platforms. OpenAI believes it fulfilled its obligations while Apple failed on key commitments related to ChatGPT's prominence and conversion to paid subscriptions. OpenAI's legal team is actively working with an outside law firm on a range of options, including sending a breach-of-contract notice, though they hope to resolve issues outside of court. OpenAI may delay escalating the situation until after its separate court battle with Elon Musk concludes.
Adding to the complexities, Apple is reportedly concerned about OpenAI's privacy posture and its ventures into hardware, particularly projects involving former Apple design chief Jony Ive. Apple is also exploring deeper integrations with rival AI models from Google (Gemini) and Anthropic, which is not among OpenAI's grievances with the current partnership. OpenAI's disappointment is primarily with the execution and commercialization of their existing agreement.
