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OpenAI Mulls Legal Action Against Apple

OpenAI weighs suing Apple over limited ChatGPT integration from 2024 partnership.

  • OpenAI is reportedly considering legal action against Apple over the limited implementation of their 2024 partnership.
  • The AI firm believes Apple has not made an “honest effort” to integrate ChatGPT, failing to drive expected user subscriptions.
  • Apple stock dipped marginally from record highs following the Bloomberg report, though retail sentiment remained bullish.

OpenAI is lawyering up for a potential contract fight with Apple, according to a media report from Bloomberg. This brewing conflict centers on the tech giant’s limited use of ChatGPT across its iOS ecosystem since their 2024 deal.

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The core issue is OpenAI’s lack of material benefit from the partnership that integrated its chatbot into Siri and Apple’s software. OpenAI expected this deep integration would coax more users into subscribing to ChatGPT’s paid tiers. However, Apple’s use of the technology remains limited and features are reportedly hard to find.

Consequently, OpenAI lawyers are actively preparing options, which may start with a formal notice alleging breach of contract. “We have done everything from a product perspective,” an OpenAI executive stated anonymously. “They have not, and worse, they haven’t even made an honest effort.”

Meanwhile, any formal legal move by OpenAI likely won’t occur until after its ongoing trial with Elon Musk concludes. The fraying partnership marks a setback for Apple as it races to compete with AI rivals like Google and Microsoft.

The 2024 deal gave OpenAI access to Apple’s vast user base, while Apple gained leading Ai technology. Under its terms, iPhone users could enroll in ChatGPT’s paid plans directly through iOS, with Apple taking a percentage of fees. Despite the dispute, retail sentiment on Stocktwits for AAPL remained “bullish” as the stock has gained 10% year-to-date.

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