OpenAI is reportedly preparing legal action against Apple; it wouldn’t be the first partner to feel burned

OpenAI is reportedly dissatisfied with its partnership with Apple regarding the integration of ChatGPT, leading the company to contemplate legal action against the tech giant. Sources told Bloomberg that OpenAI's frustration stems from unmet expectations regarding subscriber growth and the visibility of its features within Apple’s ecosystem. In response to these issues, OpenAI has sought the assistance of an external law firm to explore its legal options. These options may involve sending a formal breach-of-contract notice to Apple, potentially avoiding the need for immediate litigation. However, any decision regarding legal action is likely to be postponed until after the conclusion of OpenAI's ongoing trial with Elon Musk. The collaboration, announced during Apple’s Worldwide Developers Conference in June 2024, aimed to integrate ChatGPT into Apple's operating systems, enhancing Siri and the iPhone's Visual Intelligence feature. This partnership was expected to generate significant revenue for OpenAI, but reports indicate that the integration has not been effectively promoted, leaving OpenAI disappointed with the results. An OpenAI executive expressed their discontent, stating that the company was asked to have faith in Apple's approach, which did not yield positive results. Meanwhile, Apple has its own concerns, particularly regarding OpenAI's privacy standards, as well as frustrations related to OpenAI's hardware initiatives led by former Apple executives. OpenAI is not the first partner to encounter difficulties with Apple. Historical examples, such as the fallout over Google Maps, which was replaced by Apple's own mapping service, highlight the challenges software companies can face when partnering with Apple. Adobe's experience with Flash on iOS and Spotify's long-standing complaints about App Store practices further illustrate Apple's tumultuous relationships with its partners. Interestingly, some partnerships have managed to evolve positively, as evidenced by Google's recent multi-year deal with Apple to provide AI infrastructure, demonstrating that commercial interests can sometimes bridge these gaps. Amid these developments, OpenAI is also dealing with its own internal challenges, including Musk's lawsuit, which claims that OpenAI has strayed from its original nonprofit mission, and ongoing tensions with Microsoft, its primary backer, as it seeks greater independence ahead of its IPO aspirations.