OpenAI is preparing to take legal action against Apple over the companies' partnership to integrate ChatGPT with Siri, according to a new report from Bloomberg. The conflict centers on OpenAI's belief that Apple has failed to uphold its end of the deal, leading to disappointing subscription revenues and minimal deep integration across Apple's ecosystem.
The partnership, announced in 2024 alongside iOS 18, was seen as a landmark collaboration between two tech giants. It allowed Siri to fall back on ChatGPT for complex queries and enabled image generation through Image Playgrounds and Visual Intelligence. However, OpenAI's expectations for the partnership have not been met, sources tell Bloomberg.
Background of the Partnership
Apple and OpenAI agreed to integrate ChatGPT into iOS without any direct monetary exchange. Apple does not pay OpenAI for using its technology; instead, the deal allows users to subscribe to ChatGPT Plus directly through the Settings app on iPhone. OpenAI anticipated that this distribution channel would generate billions of dollars annually in subscription revenue. However, the report indicates that the actual number of new subscribers is a fraction of what was projected.
An unnamed OpenAI executive told Bloomberg: "When we heard about this opportunity, it sounded amazing: being able to acquire a giant number of customers and have distribution in such a big mobile ecosystem." The executive added that Apple was initially vague about the product details, essentially asking OpenAI to "take a leap of faith and trust us." That leap has not paid off, leading to the current legal threat.
Legal Options Under Consideration
OpenAI's lawyers are working with an external legal firm to explore a range of options. One possibility is sending Apple a formal notice alleging breach of contract, which could precede a full lawsuit. The report quotes an OpenAI executive: "We have done everything from a product perspective. They have not, and worse, they haven't even made an honest effort."
The breach-of-contract claim likely centers on the level of integration and promotional placement OpenAI expected. Sources say OpenAI believed ChatGPT would receive prime placement within Siri and across more apps, which has not materialized. Apple's upcoming iOS 27 is expected to introduce support for additional AI models, including Google Gemini and Anthropic's Claude, further diluting ChatGPT's presence.
Apple's Expanding AI Strategy
The legal tension comes ahead of Apple's Worldwide Developers Conference (WWDC), where the company is expected to unveil a next-generation Siri powered by Google Gemini. According to the report, iOS 27 will also allow users to integrate with other AI models, including Claude from Anthropic. An OpenAI executive clarified that this expansion is not the direct cause of the legal action: "It isn't driving the company's legal action since the partnership wasn't meant to be exclusive from the start."
However, the same executive expressed frustration with Apple's approach: "Apple has so much market power that they can dictate terms. We already took this leap of faith with you, and it didn't turn out well."
OpenAI's Own Hardware Ambitions
Compounding the tensions, OpenAI is developing its own hardware devices, led by former Apple design chief Jony Ive. The startup has poached numerous Apple engineers to work on these projects, a move that has angered Apple executives for more than a year. The hardware effort is seen as a long-term strategic play that could eventually reduce OpenAI's dependence on Apple's ecosystem.
Financial Disappointment
The core of OpenAI's complaint is financial. The ability to purchase a ChatGPT subscription directly from the Settings app on iPhone was supposed to be a massive revenue driver. Sources told Bloomberg that the volume of subscriptions has "not come close" to OpenAI's projections. Given that Apple takes a cut of each subscription, the partnership has also failed to generate meaningful revenue for Apple from this deal.
Broader Implications
The conflict highlights the challenges of platform partnerships in the AI era. OpenAI's reliance on Apple's distribution channel underscores the power dynamics between AI startups and large device makers. If OpenAI follows through with legal action, it could set a precedent for how such collaborations are structured in the future.
Meanwhile, no final decisions have been made, and OpenAI still hopes to resolve the issues outside court. The outcome could influence how Apple approaches partnerships with other AI companies, especially as it opens Siri to more models. The situation also underscores the competitive nature of the AI landscape, where partnerships can quickly sour if expectations are not met.
Observers note that OpenAI's legal posture may also serve as leverage in ongoing negotiations with Apple about the future of their relationship. With WWDC approaching, both companies are eager to shape the narrative around their AI strategies. The coming weeks will show whether the deal can be salvaged or if it will end in costly litigation.
Source: 9to5Mac News