OpenAI Considers Legal Action Over Apple ChatGPT Integration
Key Points
- OpenAI hired an outside law firm to explore a breach‑of‑contract claim against Apple.
- The dispute stems from a ChatGPT integration announced at WWDC that fell short of revenue and visibility expectations.
- OpenAI alleges the feature is buried in iOS, making it hard for users to find.
- Apple’s concerns include OpenAI’s privacy practices and its hardware ambitions led by former Apple designer Jony Ive.
- The situation echoes past Apple partner conflicts, such as Google Maps, Adobe Flash, and Spotify’s App Store grievances.
- Google recently signed a multiyear AI deal with Apple, supplying Gemini models for Apple Intelligence.
- OpenAI’s own legal battles include Elon Musk’s lawsuit and tensions with Microsoft ahead of a potential IPO.
OpenAI is reportedly weighing a breach‑of‑contract claim against Apple after the ChatGPT integration announced at WWDC failed to deliver the expected subscriber growth and platform visibility. The AI firm has hired an outside law firm to explore options, a move that could precede a lawsuit once its current litigation with Elon Musk concludes.
OpenAI is reportedly exploring legal options against Apple after the ChatGPT integration failed to meet expectations. The AI startup believes the partnership, unveiled at Apple’s Worldwide Developers Conference in June 2024, fell short of promised revenue and prominence on the iPhone.
According to Bloomberg, OpenAI engaged an external law firm to assess a breach‑of‑contract notice. The firm’s advice could lead to formal notice to Apple, though a full lawsuit would likely wait until after OpenAI’s ongoing trial with Elon Musk.
The WWDC announcement embedded ChatGPT within Siri and the iPhone’s Visual Intelligence feature, allowing users to point the camera at a scene, snap a photo and ask ChatGPT questions about the image.
Industry watchers and OpenAI executives expected the deal to funnel billions of dollars in new subscriptions and grant the company prime real estate on one of the world’s most‑used mobile ecosystems.
Instead, OpenAI says the integration has been buried deep in the operating system, making the feature hard to locate, and revenue from the tie‑up is nowhere near the projections set by both sides.
“They basically said, ‘OpenAI needs to take a leap of faith and trust us,’” an OpenAI executive told Bloomberg. “It didn’t work out well.”
Apple’s own grievances include concerns about OpenAI’s privacy standards and irritation over the startup’s push into hardware, an effort led by former Apple design chief Jony Ive.
The friction mirrors earlier partner disputes. Google Maps, once a flagship iPhone feature, was removed in 2012 and replaced by Apple Maps, prompting a rare public apology from Tim Cook.
Adobe suffered a similar setback when Steve Jobs refused to support Flash on iOS in 2010, effectively ending the technology’s mobile future.
Spotify spent years arguing that Apple used App Store control to disadvantage its streaming service, a claim that resulted in a €1.8 billion fine from the European Commission in March 2024.
Not all rifts are permanent. In January, Google signed a multiyear AI infrastructure deal with Apple, supplying Gemini models for Apple Intelligence and earning roughly $1 billion a year.
OpenAI’s legal challenges continue elsewhere. Elon Musk’s lawsuit accusing the company of abandoning its nonprofit mission is currently at trial, and tensions with Microsoft have surfaced as OpenAI eyes an IPO.
If OpenAI proceeds with a breach‑of‑contract notice, Apple would be forced to address the alleged shortfall in visibility and revenue, though the ultimate outcome remains uncertain.
TechCrunch has reached out to both firms for comment; neither has responded as of this writing.