OpenAI is reportedly exploring legal action against Apple due to dissatisfaction with the integration of ChatGPT into Apple's operating systems. Announced at Apple's Worldwide Developers Conference in June 2024, the partnership allowed ChatGPT to be an option within Siri and part of the iPhone's Visual Intelligence feature. OpenAI had anticipated billions of dollars in new subscriptions and prime placement on one of the world's most-used mobile ecosystems, but sources indicate the integration has been difficult to find, its features hard to use, and revenue far below projections.
OpenAI sources, including one executive, claim Apple told them to "take a leap of faith" but it "didn't work out well." They believe Apple intentionally failed to promote the integration and fear it may have damaged the ChatGPT brand. Specific grievances include the requirement for users to explicitly say "ChatGPT" when using Siri and the use of small windows for ChatGPT outputs, which make the features easily ignorable. OpenAI reportedly feels they have done everything on the product side, while Apple has not made an honest effort.
OpenAI has engaged an outside law firm to explore options, which could include a formal breach-of-contract notice without immediately escalating to a full lawsuit. Any legal moves are expected to wait until after the conclusion of OpenAI's ongoing trial with Elon Musk. This strained relationship is not unique for Apple, which also has a multi-year deal with Google to power Apple Intelligence with Gemini models, reportedly paying Google around $1 billion annually. OpenAI's current partnership with Apple was never intended to be exclusive, meaning Apple's exploration of other AI providers like Anthropic's Claude and Google Gemini is not the driver of OpenAI's potential legal action.
Apple, for its part, reportedly has concerns about OpenAI's privacy standards and is irritated by OpenAI's push into hardware, an effort led by former Apple executives including ex-design chief Jony Ive. OpenAI executives have stated that when the deal was presented, the promise of acquiring a giant number of customers and distribution in a large mobile ecosystem "sounded amazing," but efforts to renegotiate have since stalled. The perceived failure of this partnership has reportedly led OpenAI to decline other potential collaborations with Apple.
