OpenAI is reportedly considering legal action against Apple over dissatisfaction with how ChatGPT has been integrated into the iPhone ecosystem, according to a Bloomberg News report cited by TechCrunch. The dispute centers on claims that Apple failed to deliver the visibility, user growth, and subscription gains OpenAI expected from the partnership announced in 2024.
Bloomberg reported that OpenAI has hired an outside law firm to examine possible legal options. One path under consideration includes sending Apple a formal breach-of-contract notice, though the company is not currently expected to immediately pursue a full lawsuit. Any legal escalation would likely wait until the conclusion of OpenAI’s ongoing court case involving Elon Musk.
OpenAI’s Complaints Over The Partnership
The partnership between the two companies was introduced during Apple’s Worldwide Developers Conference in June 2024. Under the agreement, ChatGPT became integrated into Apple’s operating systems as an optional extension within Siri and through Visual Intelligence features on the iPhone. The functionality allowed users to analyze objects or surroundings with their device camera and send related questions and images to ChatGPT.
At the time, industry analysts and OpenAI reportedly viewed the deal as a potentially major source of subscriber growth. Bloomberg said OpenAI expected the integration to generate billions of dollars in new subscriptions while placing ChatGPT prominently across Apple’s large mobile ecosystem.
Instead, Bloomberg reported that OpenAI executives became increasingly frustrated with the rollout. According to the report, the company believed ChatGPT features were difficult for users to discover and insufficiently promoted inside Apple’s software. Revenue tied to the partnership also reportedly fell well below projections.
“They basically said, ‘OpenAI needs to take a leap of faith and trust us,’” one OpenAI executive told Bloomberg. “It didn’t work out well.”
Apple has reportedly raised concerns of its own regarding OpenAI’s privacy standards. Bloomberg also said Apple executives have been uneasy about OpenAI’s expansion into hardware development, particularly because the effort involves several former Apple employees, including former Apple design chief Jony Ive.
Apple’s History Of Disputes With Partners
The tensions add to a long list of strained relationships between Apple and major software or platform partners.
One of the most notable examples involved Google and Google Maps. The mapping service played a major role in the original iPhone experience after the device launched in 2007. Apple later replaced Google Maps with Apple Maps in 2012, a transition that triggered widespread criticism due to technical problems and inaccurate mapping data. The backlash led Apple CEO Tim Cook to issue a public apology.
Relations between Apple and Google had already weakened after Google launched Android in 2008. The rivalry intensified further after then-Google CEO Eric Schmidt stepped down from Apple’s board in 2009.
Adobe also clashed with Apple during the mobile transition period. In 2010, Apple co-founder Steve Jobs published an open letter explaining why Apple would not support Adobe Flash on the iPhone and iPad. The decision weakened Flash’s role in mobile computing, and the platform later declined in usage.
Spotify spent years arguing that Apple used control of the App Store to disadvantage competing streaming services after Apple Music launched in 2015. In March 2024, the European Commission fined Apple nearly €1.8 billion over anti-competitive practices related to music streaming apps.
Despite those disputes, Apple has also maintained commercial relationships with former rivals when business interests aligned. Bloomberg noted that Apple signed a multiyear agreement with Google in January to support future Apple Intelligence features using Gemini AI models. Apple is reportedly paying Google around $1 billion annually under the arrangement.
OpenAI Faces Pressure Beyond Apple
OpenAI has also faced growing friction with several of its own partners and stakeholders.
Elon Musk’s lawsuit against OpenAI is currently in trial proceedings. Musk has accused the company of departing from its original nonprofit mission and operating in bad faith.
Bloomberg also reported ongoing tensions between OpenAI and Microsoft, the company’s largest investor and infrastructure partner. The relationship has reportedly become more complicated as OpenAI seeks greater operational independence while pursuing long-term IPO ambitions.
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