In a development that could reshape the competitive landscape of AI and mobile ecosystems, OpenAI is reportedly preparing legal action against Apple over their partnership that brought ChatGPT to Siri. According to a detailed report from Bloomberg, OpenAI lawyers are working with an outside legal firm on a range of options, including sending Apple a notice alleging breach of contract before potentially filing a full lawsuit. The partnership, announced with much fanfare at Apple’s Worldwide Developers Conference in 2024, was seen as a landmark deal that would embed OpenAI’s conversational AI directly into iOS, giving Siri access to ChatGPT’s capabilities for complex queries, image generation, and more.
The core of OpenAI’s complaint centers on unmet expectations. The company believed the integration would be a powerful driver for ChatGPT subscriptions, with users easily signing up through the iPhone’s Settings app. This pipeline, they anticipated, could generate billions of dollars annually. However, OpenAI executives claim that Apple has not delivered on the promised distribution and integration. An unnamed executive was quoted saying, “We have done everything from a product perspective. They have not, and worse, they haven’t even made an honest effort.” The executive added that Apple initially asked OpenAI to take a “leap of faith,” but the deal ended up being a failure for the startup.
Under the terms of the agreement, no money changes hands between Apple and OpenAI for the use of ChatGPT technology. Instead, Apple receives a cut of any subscription revenue generated through its platform. This structure made the success of subscription conversions critical for OpenAI. Yet, the report indicates that the actual number of sign-ups has fallen far short of projections.
Background of the Partnership
When Apple announced iOS 18 at WWDC 2024, one of the standout features was the integration of ChatGPT into Siri. Users could ask Siri complex questions and, when the built-in AI couldn’t handle them, the system would automatically offer to route the query to ChatGPT. Apple also integrated the chatbot into other system services like Image Playgrounds for AI-generated images and Visual Intelligence for camera-based object recognition. For Apple, the move was seen as a strategic step to catch up in the AI arms race without having to build its own large language model from scratch. For OpenAI, it was a massive distribution opportunity that could put ChatGPT in front of hundreds of millions of iPhone users.
The deal was non-exclusive from the start, meaning Apple was free to partner with other AI providers. OpenAI executives acknowledged that this non-exclusive clause isn’t driving their legal action. Instead, the fundamental issue is that Apple allegedly failed to promote or facilitate the ChatGPT subscription flow effectively. OpenAI expected prime placement within Siri and deeper integration across key Apple apps, such as deep learning in Notes, Mail, or Calendar. But the executive claims that Apple largely treated ChatGPT as a fallback tool rather than a featured partner, limiting visibility and ease of use for upgrade prompts.
The Legal Tactics Being Considered
According to the Bloomberg report, OpenAI’s legal team is working with an unnamed outside firm to explore several avenues. One potential first step is a formal notice of breach of contract, which could pressure Apple to renegotiate terms or face a lawsuit. This approach allows OpenAI to avoid immediate litigation costs while signaling its seriousness. If a resolution isn’t reached, a full lawsuit could allege that Apple violated specific contractual obligations related to promotion, integration depth, and subscription funnel optimization.
Legal experts note that such cases often hinge on ambiguous contract language about “best efforts” or “reasonable commercial efforts.” Apple’s defense would likely argue that the partnership was always meant to be supplemental and that the company fulfilled its core obligations by enabling ChatGPT in Siri. However, OpenAI may point to documented assurances from Apple executives about product placement and marketing support. The outcome could set a precedent for how major platform holders and AI startups structure their relationships in the future.
Timing and Competitive Context
OpenAI’s legal preparation comes at a critical moment. Apple’s WWDC 2026 is expected to announce a next-generation Siri powered by Google Gemini, and iOS 27 will reportedly open the iPhone to other AI models, including Anthropic’s Claude. This move signals that Apple is moving away from exclusive reliance on OpenAI, even as the existing partnership continues. The OpenAI executive acknowledged that Apple’s expansion to other models isn’t the cause of their legal action, but it compounds the sense that OpenAI has been undervalued in the relationship.
Additionally, tensions between the two companies have been simmering over talent poaching. OpenAI, which is developing its own hardware products under the leadership of former Apple design chief Jony Ive, has hired many senior Apple engineers. Apple executives have reportedly “been fuming for more than a year” about these recruiting tactics. This personal animosity may further complicate any potential out-of-court settlement.
Market and Industry Implications
If OpenAI proceeds with legal action, it could have wide-reaching effects. Apple has long maintained that its partnerships with AI providers are fair and beneficial to both sides. But if a partner of OpenAI’s stature pursues a breach of contract claim, it may discourage other AI companies from entering similar exclusive or semi-exclusive deals with Apple. Conversely, Apple might respond by tightening its partner agreements, demanding clearer performance metrics, or even pushing harder to develop its own in-house AI models, a project that has been rumored since Apple acquired several AI startups in the early 2020s.
For consumers, the immediate impact is likely minimal. ChatGPT will remain available in iOS regardless of the legal dispute, barring an extraordinary court injunction. However, the quality and depth of integration could deteriorate if OpenAI pulls back on development resources. Meanwhile, Apple’s pivot to Google Gemini and other models suggests that the company is diversifying its AI partners, reducing dependence on any single provider.
OpenAI’s hardware ambitions, led by Jony Ive, also add a new dimension. The company is reportedly designing a dedicated AI device that could compete directly with products like the iPhone. The talent drain from Apple could accelerate if the legal battle escalates, creating a more adversarial dynamic. Ive’s involvement lends credibility to OpenAI’s hardware efforts, as he was the chief designer of the iPhone, iPad, and Mac. This project, while still in early stages, could eventually offer an alternative platform for AI-powered interactions, potentially reducing OpenAI’s reliance on Apple’s ecosystem.
The Bloomberg report concludes that no final decisions have been made and that OpenAI still hopes to resolve its issues with Apple outside of court. But the brewing confrontation underscores the challenges of partnerships between platform giants and innovative startups, especially when expectations are high and stakes are even higher. As WWDC approaches, all eyes will be on whether Apple addresses these tensions or deepens them with new AI partnerships.
Source: 9to5Mac News