OpenAI is exploring possible legal action after users did what they wanted with Apple’s ChatGPT integrations and didn’t open enough paid accounts, instead of doing what CEO Sam Altman expected.
A May 14 Bloomberg The report said OpenAI retained external legal counsel and discussed options that could include sending Apple a breach of contract notice. OpenAI would expect deeper integration of ChatGPT across iOS, iPadOS, and macOS to drive strong subscription growth across Apple’s ecosystem.
OpenAI executives now believe the partnership was financially disappointing and much more limited than expected. Apple and OpenAI entered into the deal with distinct priorities.
Apple needed a recognizable AI partner while major upgrades to Siri and Apple Intelligence features were still under development. OpenAI sought access to hundreds of millions of Apple users, estimating that the iPhone could become a significant source of recurring ChatGPT subscriptions worth billions per year.
Internally, the companies reportedly viewed the OpenAI deal as a potential counterpart to the hugely profitable Google Search deal in Apple’s Safari. The ChatGPT partnership has never been able to generate this level of revenue or strategic value.
Neither company structured the partnership around significant direct payments. Instead, both sides hoped for strategic advantages. OpenAI expected growth in customers and subscriptions, while Apple secured an interim AI solution while continuing to build its own generative AI systems.
Apple has kept ChatGPT available, but tightly controlled
Despite Apple’s high-profile announcement at WWDC 2024, ChatGPT in Apple’s software exposes fewer features than OpenAI’s standalone app and operates within much stricter limits.
Users often must explicitly invoke “ChatGPT” in Siri prompts before requests are routed to OpenAI systems. Answers also appear in smaller interface windows with less information than the standalone application typically provides.
OpenAI’s internal studies found that users overwhelmingly preferred the standalone ChatGPT app over Apple’s built-in integrations.
Apple’s version feels like a tightly managed Siri extension rather than an AI layer deeply integrated into the operating system. The standalone app offers features not available in Apple’s implementation, such as persistent memory, broader access to templates, advanced voice tools, custom GPTs, and direct subscription management.
OpenAI executives apparently expected broader integration into Apple apps and greater placement in Siri. Apple has instead kept the implementation relatively tight while continuing development of its own Apple Intelligence systems.
Apple reportedly had internal concerns about OpenAI’s privacy standards during partnership negotiations. The company built Apple Intelligence around on-device processing and Private Cloud Compute to keep more user data in Apple-controlled infrastructure.
This tension over control of data is at the heart of why the two companies have never been fully aligned. Cloud-focused OpenAI systems work very differently, giving Apple less direct control over how external AI models process user information.
OpenAI looks more and more like a future Apple competitor
Relations between companies have also become more complicated outside of software. OpenAI acquired Jony Ive’s AI hardware startup and aggressively recruited Apple engineers for its growing device ambitions.
OpenAI offered some Apple recruits compensation packages worth millions more than Apple provided. These developments increasingly position OpenAI as a competitor rather than a partner.
Apple is also developing new hardware efforts related to Jony Ive’s AI startup, while preparing for a future in which external AI providers become interchangeable services within iOS.
Apple plans to introduce an “Extensions” system in iOS 27 that will allow users to choose from multiple external AI models. ChatGPT, Anthropic’s Claude, and Google Gemini are all expected to be part of the system.
External AI models become interchangeable services within iOS rather than core features of the platform. ChatGPT looks set to work alongside Siri and Apple Intelligence instead of becoming a dominant layer in Apple’s ecosystem.
Any court case could still prove difficult. Large-platform deals often give companies like Apple broad control over implementation details, placement, and product design decisions. And users will do what they want, regardless of Silicon Valley’s expectations.
OpenAI still hopes to resolve the disagreement privately and may wait until its legal fight with Elon Musk is over before taking formal action against Apple. A trial is not guaranteed at this stage.