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Sam Altman led OpenAI is reportedly planning a legal action against iPhone maker Apple as tensions rise over their partnership. OpenAI has claimed expected benefits from deeper integration have not materialised
OpenAI likely to pursue a legal action against Apple (AP)Artificial intelligence (AI) startup and ChatGPT developer OpenAI is now preparing to take legal action against tech giant Apple, as the two-year-old partnership between the two companies has reportedly become strained.
Bloomberg on Thursday reported that OpenAI, which has failed to see the expected benefits from its deal with Apple, is now actively working with an outside legal firm on several options that could be formally executed in the near future. Among these options is sending the iPhone maker a notice alleging breach of contract without necessarily filing a full lawsuit at the outset. Citing sources, the report noted that OpenAI recently brought in an outside firm to assist with the situation.
Why is OpenAI considering legal options against Apple?
ChatGPT’s maker believed that the partnership between the two companies, which integrated the chatbot into Apple software, would bring in more users to subscribe to ChatGPT. The firm also expected deeper integration across more Apple apps and prime placement within the Siri assistant.
Instead, Apple’s use of OpenAI technology across its operating systems remains limited, and features are reportedly hard to find. An OpenAI executive told Bloomberg, "We have done everything from a product perspective,” and added, “They have not, and worse, they haven’t even made an honest effort.”
Apple's concerns over OpenAI
The tech giant has reportedly expressed concerns over OpenAI, including whether the AI startup does enough to protect user privacy. Meanwhile, the startup’s recent push into devices, an effort led by former Apple executives, has reportedly irritated the iPhone maker.
While no final decision has been made so far, OpenAI hopes to resolve its issues with Apple outside of court. Separately, any legal move will not come until after its trial with billionaire Elon Musk concludes.
Apple-OpenAI partnership
The recent developments mark a striking split between two Silicon Valley companies that once seemed to be heading towards a broad strategic partnership. Back in June 2024, OpenAI Chief Executive Officer (CEO) Sam Altman was seated in the audience at Apple’s campus when the deal was announced, with software chief Craig Federighi describing the startup as the “pioneer and market leader” in artificial intelligence.
As part of their agreement, iPhone users would get a way to sign up for ChatGPT memberships directly from the iOS settings menu, with the tech giant taking a portion of the subscription revenue generated via its platforms.
The arrangement also allowed users to access ChatGPT results within Siri and use the AI technology to generate text and analyze surrounding objects through the iPhone’s Visual Intelligence feature. The partnership later expanded, with Apple adding ChatGPT as an option for creating images in its Image Playground app and for analyzing on-screen content.
OpenAI executives also believed that the arrangement would eventually become a major source of revenue as the company worked towards an initial public offering. However, the ties have deteriorated since then, and OpenAI's attempts at renegotiating the deal have also stalled.
The Sam Altman-led AI startup believed the deal could generate billions of dollars per year in subscriptions, something that has not come close to happening. It also now believes the Apple implementation has damaged OpenAI’s brand with customers.
OpenAI set to lose its unique role with Apple
In the coming months, OpenAI is expected to lose its exclusive role within Apple software. The iPhone maker is opening its platforms to a range of rival AI providers later this year, according to Bloomberg News.
This will allow users to install multiple AI chatbots from the App Store and use them within Siri for tasks such as answering questions, generating text, and creating images.
Apple is reportedly testing integrations with Anthropic PBC’s Claude and Google Gemini as part of the rollout. A redesigned Siri with these capabilities, expected in iOS 27, is set to be unveiled at Apple’s Worldwide Developers Conference on June 8.
(with agency inputs)
About the Author
Swati Gandhi
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br> Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br> At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br> She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br> Outside work, Swati focuses on exploring her passion and love for food. From fancy cafes to street spots, Swati explores food like a true foodie.
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