OpenAI is reportedly exploring legal action against Apple over a ChatGPT integration that failed to generate the revenue and visibility the AI company expected, according to a report from Bloomberg News. The dispute, which has been simmering since the partnership was announced at Apple’s Worldwide Developers Conference in June 2024, now threatens to escalate into formal litigation.
What went wrong with the ChatGPT-Apple deal
The integration, which wove ChatGPT into Apple’s operating systems as an option within Siri and as part of the iPhone’s Visual Intelligence feature, was initially seen as a major win for OpenAI. Industry observers expected the deal to funnel billions of dollars in new subscriptions to the AI company and give it prime placement across one of the world’s most-used mobile ecosystems.
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Instead, Bloomberg reports that OpenAI has grown increasingly frustrated, complaining that the integration has been buried within Apple’s software, making its features difficult for users to find. Revenue from the tie-up has fallen far short of projections, according to people familiar with the matter. OpenAI has reportedly enlisted an outside law firm to evaluate its options, which could include sending Apple a formal breach-of-contract notice. Any legal move would likely wait until after the conclusion of OpenAI’s ongoing trial with Elon Musk.
Apple’s history of strained partnerships
OpenAI is far from the first company to find itself at odds with Apple after partnering with the iPhone maker. The company has a long track record of embracing partners and then alienating them when their interests diverge.
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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 for years, fueled by the rise of Google’s Android platform and the departure of Google’s then-CEO Eric Schmidt from Apple’s board in 2009.
Adobe also has scars from its dealings with Apple. Steve Jobs famously refused to support Flash on the iPhone and iPad, publishing a 2010 open letter explaining his decision and effectively dooming the technology on mobile devices.
Spotify spent years arguing that Apple used 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.
Why this matters for the AI industry
The OpenAI-Apple dispute underscores a fundamental tension for software companies building on Apple’s platform. The iPhone is an enormously attractive distribution channel, but it operates entirely under Apple’s control. Companies that build there are guests, and as the history shows, Apple has little hesitation in showing guests the door when their interests no longer align.
For OpenAI, the stakes are particularly high. The company is managing multiple legal and business challenges simultaneously, including the trial with Elon Musk, which accuses OpenAI of abandoning its nonprofit founding mission. OpenAI has also reportedly managed 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 adds another chapter to the long history of partnerships that soured under Apple’s platform control. While the outcome remains uncertain, the dispute highlights the risks that AI companies face when building on platforms they do not control. Both OpenAI and Apple have declined to comment on the Bloomberg report.
FAQs
Q1: Why is OpenAI considering legal action against Apple?
OpenAI is reportedly frustrated that the ChatGPT integration into Apple’s operating systems has not generated the expected revenue or visibility. The company claims the features are buried and hard to find, and revenue has fallen far short of projections.
Q2: What was the ChatGPT-Apple integration?
Announced at Apple’s WWDC in June 2024, the integration wove ChatGPT into Apple’s operating systems as an option within Siri and as part of the iPhone’s Visual Intelligence feature, allowing users to send photos to ChatGPT with related questions.
Q3: Has Apple had similar disputes with other partners?
Yes. Apple has a long history of strained partnerships, including with Google (Google Maps replaced by Apple Maps in 2012), Adobe (Flash not supported on iPhone), and Spotify (EU fined Apple €1.8 billion for anticompetitive App Store practices).
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