OpenAI is preparing possible legal action against Apple, including a potential breach-of-contract notice, as their high-profile partnership around ChatGPT has failed to deliver the expected subscriber growth and revenue. According to a Bloomberg report, the AI firm has engaged an outside law firm to assess its options, and could send Apple a formal notice alleging breach of contract before any full lawsuit is filed.
The deal, unveiled at Apple’s WWDC in June 2024, integrated ChatGPT into Siri and the iPhone’s Visual Intelligence feature, offering users a direct path to subscribe to ChatGPT through iOS settings—with Apple taking a cut of the revenue. OpenAI had anticipated billions of dollars annually from the arrangement, but internal research shows iPhone users overwhelmingly prefer the standalone ChatGPT app over the Siri integration, which only surfaces ChatGPT results when users explicitly request them. “We have done everything from a product perspective,” an unnamed OpenAI executive told Bloomberg. “They have not, and worse, they haven’t even made an honest effort.”
The tensions run deeper than product performance. Apple has long harbored concerns about OpenAI’s approach to user privacy, while OpenAI’s aggressive hiring of Apple engineers—offering compensation far above Apple’s norm—has frustrated the tech giant. Further complicating matters, OpenAI acquired Jony Ive’s hardware startup for approximately $6.5 billion, positioning itself to potentially compete directly with the iPhone.
Apple stock fell as much as 1.2% to $295.38 on Thursday following the news, though it was still up around 10% for the year prior.
Meanwhile, Apple is planning to open its ecosystem to multiple AI providers with iOS 27, expected to be previewed at WWDC on June 8. The new Extensions system will let users choose from models including Anthropic’s Claude and Google Gemini directly within Siri. OpenAI will remain in that model picker, which could improve its visibility compared to the current setup. Apple has struck a $1 billion annual deal with Google to underpin broader AI efforts with Gemini technology, a role OpenAI was offered but declined due to lost confidence in the partnership.
Any formal legal move is unlikely until OpenAI’s ongoing trial with Elon Musk concludes. The dispute also highlights Apple’s pattern of cycling through major software partners, from Google Maps to Adobe Flash to Spotify’s antitrust battles. The final outcome remains uncertain, but the unraveling of the OpenAI-Apple deal underscores the high stakes—and broken promises—in the race to embed AI into everyday devices.
