OpenAI is reportedly considering legal action against Apple over a ChatGPT integration that has fallen far short of revenue and visibility expectations, according to a Bloomberg News report published Thursday. The company has retained an outside law firm to evaluate its options, which could include sending a formal breach-of-contract notice to the iPhone maker, though a full lawsuit is not imminent. Any legal escalation is expected to wait until after OpenAI’s ongoing trial with Elon Musk concludes.
What Went Wrong With the ChatGPT-Apple Deal
Announced at Apple’s Worldwide Developers Conference in June 2024, the partnership integrated ChatGPT into Apple’s operating systems as an option within Siri and as part of the iPhone’s Visual Intelligence feature. The deal was widely seen as a major win for OpenAI, offering prime placement across one of the world’s most-used mobile ecosystems. Industry observers estimated it could eventually funnel billions of dollars in new subscriptions to the AI company.
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Instead, Bloomberg reports that OpenAI has grown increasingly frustrated, complaining that the integration has been buried within Apple’s interface, making features hard for users to find. Revenue from the tie-up is reportedly nowhere near initial projections. One OpenAI executive told Bloomberg, “They basically said, ‘OpenAI needs to take a leap of faith and trust us.’ It didn’t work out well.”
Apple’s Long History of Strained Partnerships
OpenAI is far from the first company to find Apple a difficult partner. The iPhone maker has a well-documented pattern of embracing partners and later distancing itself from them, often to the partner’s detriment.
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Google Maps: A Cautionary Tale
The most famous example is Google Maps, which was a flagship feature of the original iPhone. In 2012, Apple replaced it with its own, markedly inferior Apple Maps product, prompting a rare public apology from CEO Tim Cook. The friction had been building since Google’s launch of Android in 2008, and after then-CEO Eric Schmidt stepped down from Apple’s board in 2009, the rivalry only intensified.
Adobe and the Flash Debacle
Steve Jobs famously refused to support Adobe Flash on the iPhone and iPad, publishing an open letter in 2010 explaining his decision. The move effectively doomed Flash on mobile devices, and the technology never recovered its footing.
Spotify’s Antitrust Battle
Spotify spent years arguing that Apple leveraged its control over the App Store to disadvantage rival music streaming services after launching Apple Music in 2015. The European Commission agreed, fining Apple nearly €1.8 billion in March 2024.
Apple’s Own Grievances With OpenAI
Apple has its own complaints, including concerns about OpenAI’s privacy standards and irritation over the company’s push into hardware, an effort led by former Apple executives including ex-design chief Jony Ive. Despite these tensions, Apple has shown it can work with rivals when it serves its interests. In January, Apple struck a multiyear deal with Google to power the next generation of Apple Intelligence with Gemini models, paying roughly $1 billion annually.
OpenAI’s Broader Relationship Challenges
The potential legal action adds to a growing list of strained relationships for OpenAI. The company is currently defending itself in court against Elon Musk’s lawsuit, which accuses it of abandoning its nonprofit founding mission. OpenAI has also reportedly navigated tensions with Microsoft, its biggest backer and infrastructure partner, as it pushes for greater independence ahead of its own IPO ambitions.
Conclusion
The reported legal exploration between OpenAI and Apple underscores the risks that software companies face when building on Apple’s platform. While the iPhone offers enormous reach, it operates entirely under Apple’s control, leaving partners as guests in an ecosystem where the rules can change at any time. For OpenAI, a company already managing multiple high-stakes relationships, this latest friction adds another layer of complexity to its business strategy.
FAQs
Q1: Why is OpenAI considering legal action against Apple?
OpenAI claims the ChatGPT integration into Apple’s operating systems has been buried in the interface, making features hard to find, and that revenue from the partnership is far below projections. The company believes Apple may have breached their agreement.
Q2: Has Apple faced similar legal issues with other partners?
Yes. Spotify successfully argued that Apple used App Store rules to disadvantage competing music services, resulting in a €1.8 billion fine from the European Commission. Google also had a high-profile falling out over Google Maps, which Apple replaced with its own product in 2012.
Q3: What happens next in the OpenAI-Apple dispute?
OpenAI has hired an outside law firm to evaluate its options. Any formal legal action is expected to wait until after OpenAI’s trial with Elon Musk concludes. The company may first send a breach-of-contract notice before deciding whether to escalate to a lawsuit.
