OpenAI explores legal action against Apple over failed ChatGPT integration

OpenAI is reportedly preparing legal action against Apple after a $1.5 trillion mobile partnership failed to deliver the subscribers and revenue it promised, Bloomberg reported Thursday. At Apple’s Worldwide Developers Conference in June 2024, the companies announced ChatGPT would be woven into iOS as an option within Siri and as part of the iPhone’s Visual Intelligence feature. OpenAI expected the integration to funnel billions of dollars in new subscriptions and prime real estate across Apple’s ecosystem. Instead, OpenAI executives complained that the integration was “buried,” features were hard to find, and revenue was nowhere near projections. OpenAI has enlisted an outside law firm and is considering sending Apple a formal breach-of-contract notice, though any legal move will likely wait until after the ongoing Elon Musk trial.

Apple, however, has its own grievances, including concerns about OpenAI’s privacy standards and irritation over OpenAI’s push into hardware (led by former Apple executives like Jony Ive). The rift echoes Apple’s history of strained partnerships: Google Maps was removed in 2012 after years of tensions, replaced by Apple’s inferior Maps app; Steve Jobs famously killed Adobe Flash on iOS in 2010; and Spotify was fined €1.8 billion by the EU in March 2024 over Apple’s anti-competitive App Store practices. Meanwhile, OpenAI’s relationship with its biggest backer, Microsoft, has also frayed as OpenAI pushes for independence ahead of an IPO. The case serves as a stark reminder that building on Apple’s platform means playing by its rules—and partners rarely win.