OpenAI is reportedly considering legal action against Apple due to a failed ChatGPT integration that didn’t meet the expected subscriber growth and visibility, as reported by Bloomberg News. OpenAI is consulting an external law firm to assess their options, which could involve sending Apple a formal breach-of-contract notice, though not necessarily escalating to a lawsuit immediately. Any legal action would likely occur after OpenAI’s ongoing trial with Elon Musk concludes.
The situation highlights the challenges software companies face when partnering with Apple. The iPhone is a vital platform for growth, but it’s entirely under Apple’s control. Historically, Apple has shown partners the door when they become too comfortable, as seen with companies like Google and Adobe.
TechCrunch reached out to OpenAI and Apple for comments. The partnership, announced at Apple’s Worldwide Developers Conference in June 2024, integrated ChatGPT into Apple’s systems as an option within Siri and the iPhone’s Visual Intelligence feature. However, OpenAI claims the integration was buried, hard to find, and underperformed financially.
Apple allegedly has its own issues with OpenAI, including privacy concerns and frustration over OpenAI’s hardware push, led by former Apple executives.
OpenAI isn’t the first to regret partnering with Apple. Google Maps, an original iPhone feature, was replaced by Apple Maps in 2012, leading to a significant backlash. Adobe faced challenges when Steve Jobs refused to support Flash on the iPhone and iPad, which affected the technology’s mobile presence. Spotify also accused Apple of using App Store control to disadvantage competing music services, resulting in an EU fine for Apple in 2024.
Despite past tensions, some relationships have mended for commercial reasons. For instance, Google is now Apple’s AI infrastructure partner, with a multiyear deal to power Apple Intelligence using Google’s Gemini models. Meanwhile, OpenAI has faced tensions with Elon Musk, who is suing the company for allegedly abandoning its nonprofit mission, and reportedly with Microsoft as it seeks greater independence.