OpenAI is reportedly preparing to take legal action against Apple over their partnership to integrate ChatGPT with Siri, a deal that was announced in 2024 as part of iOS 18. According to a report from Bloomberg, OpenAI's legal team is working with an external law firm to explore options, which could include sending Apple a notice alleging breach of contract. This step would serve as a precursor to a potential lawsuit, allowing OpenAI to formally document its grievances before escalating the dispute.
The partnership, which wove ChatGPT into Apple's software, was initially seen as a major win for both companies. Apple gained access to cutting-edge AI capabilities for Siri, while OpenAI expected a significant boost in paid subscriptions through deep integration across the iPhone ecosystem. However, sources indicate that Apple has not delivered on its promises. An unnamed OpenAI executive stated that the company "has done everything from a product perspective," while Apple "has not, and worse, they haven't even made an honest effort." This sentiment reflects a growing frustration within OpenAI that the partnership has been one-sided.
Disappointment Over Subscription Revenue
A key point of contention is the ability for users to sign up for paid ChatGPT subscriptions directly through the iPhone Settings app. OpenAI reportedly believed this feature "could generate billions of dollars per year in subscriptions," but that expectation "hasn't come close to happening." The executive explained, "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." However, Apple was unwilling to share detailed product plans at the time of the deal, instead asking OpenAI to "take a leap of faith and trust us." That trust, the executive claims, resulted in a failure for the startup.
Under the current agreement, Apple receives a cut of subscription revenue generated through its platform, but no money changes hands directly between the two companies for the use of ChatGPT. This structure means Apple bears no financial risk while OpenAI's potential upside from the partnership has been stunted. Apple's other AI integrations, such as image generation via Image Playgrounds and Visual Intelligence, also rely on ChatGPT, but these features have not driven the subscription growth OpenAI anticipated.
Broader Context and Future Moves
The legal threat comes just weeks before Apple's Worldwide Developers Conference (WWDC), where the company is expected to announce a next-generation version of Siri powered by Google Gemini. iOS 27 may also allow users to integrate with other AI models, including Anthropic's Claude. OpenAI's executive emphasized that Apple's decision to open up the iPhone to multiple AI models is not driving the legal action, since the original partnership was not exclusive from the start. However, the executive added, "Apple has so much market power that they can dictate terms. We already took this leap of faith with you, and it didn't work out well."
The strained relationship extends beyond the Siri partnership. OpenAI has been aggressively hiring Apple engineers for its own hardware development projects, an effort led by former Apple design chief Jony Ive. Apple executives have reportedly been "fuming for more than a year" over these recruiting tactics, which some within Apple see as a direct attack on talent retention. Meanwhile, OpenAI is developing its own consumer devices, aiming to compete in the hardware space that Apple dominates.
Historical Context of the Partnership
The integration of ChatGPT into iOS 18 at WWDC 2024 was hailed as a landmark moment for AI on mobile devices. Siri could leverage ChatGPT for world-knowledge queries, image generation, and other tasks, making the assistant more capable than ever before. At the time, Apple touted the partnership as a way to bring advanced AI to users while maintaining privacy and security. For OpenAI, it represented a massive distribution channel: access to hundreds of millions of iPhone users worldwide.
Despite the initial enthusiasm, the rollout faced technical and commercial challenges. ChatGPT integration required users to explicitly enable the feature across apps, and many users did not discover or adopt it. Moreover, Apple's cautious approach to AI—prioritizing on-device processing and privacy—may have limited the potential for deep integration. OpenAI expected ChatGPT to appear more prominently in Siri's interface, but Apple instead positioned it as a fallback option for queries it could not handle alone. This limited exposure likely contributed to low subscription uptake.
The financial impact on OpenAI is significant. The company, which has raised billions of dollars from investors, relies heavily on subscription revenue from ChatGPT Plus and enterprise offerings. Missing out on expected billions from Apple's ecosystem puts pressure on OpenAI to find alternative growth paths. Legal action could force Apple to renegotiate the terms or provide better placement, but it also risks souring a relationship that could be crucial for future collaborations.
Industry Implications
This dispute highlights the growing tensions between AI developers and platform holders. As AI models become integral to smartphone experiences, companies like OpenAI are discovering that partnerships with giants like Apple come with strings attached. Apple's control over the iOS ecosystem—including app distribution, hardware capabilities, and user privacy policies—gives it enormous leverage. OpenAI's experience serves as a cautionary tale for other AI companies seeking similar deals.
At the same time, Apple's move toward integrating multiple AI models suggests a strategy of avoiding lock-in with any single provider. This could benefit consumers by offering choice, but it also reduces the incentives for any one AI company to invest heavily in making Apple's integration successful. Google's potential role with Gemini adds another layer of competition, as Google already has ties with Apple through default search engine agreements.
For now, OpenAI has not filed a lawsuit. The report states that "no final decisions have been made, and OpenAI still hopes to resolve its issues with Apple outside of court." The coming weeks—particularly around WWDC—will be critical in determining whether the two companies can mend their partnership or whether the dispute escalates into a legal battle that could reshape the AI landscape on Apple devices.
Source: 9to5Mac News