OpenAI is reportedly contemplating legal action against Apple, driven by profound dissatisfaction with the ChatGPT integration, which has failed to generate the anticipated subscriber growth and market prominence. This development was reported by Bloomberg News on Thursday, citing individuals familiar with the situation.
According to Bloomberg, OpenAI has engaged an external law firm to evaluate its strategic options. These possibilities could range from issuing a formal breach-of-contract notice to Apple, potentially sidestepping an immediate full-scale lawsuit. Any significant legal maneuvers are expected to be postponed until after the conclusion of OpenAI’s ongoing trial involving Elon Musk.
Nonetheless, this episode serves as a potent reminder of the complexities inherent in partnering with Apple for major software companies. The iPhone platform, while immensely appealing for market expansion, remains entirely under Apple’s stringent control, effectively positioning other developers as mere guests. There is a well-documented history of Apple disengaging with partners, from Google to Adobe, once their presence appears to become too ingrained.
TechCrunch has independently reached out to both OpenAI and Apple for their official comments on the matter.
The collaboration with OpenAI, initially announced at Apple’s Worldwide Developers Conference in June 2024, saw ChatGPT woven into Apple’s core operating systems. This integration provided ChatGPT as an optional feature within Siri and as a component of the iPhone’s Visual Intelligence capability, enabling users to analyze their surroundings with their camera and submit photos with related queries to ChatGPT.
OpenAI, alongside numerous industry observers, had projected that this agreement could eventually channel billions of dollars in new subscriptions and secure a prime position for the company across one of the world's most extensively used mobile ecosystems. Instead, Bloomberg reports, OpenAI has grown increasingly frustrated, alleging that the integration is poorly visible, its features are challenging to locate, and the revenue generated from the partnership is nowhere near initial projections. An OpenAI executive reportedly conveyed to Bloomberg, "They basically said, ‘OpenAI needs to take a leap of faith and trust us.’ It didn’t work out well.”
Apple, for its part, reportedly harbors its own set of grievances. These include concerns regarding OpenAI’s privacy standards and, according to Bloomberg, irritation over OpenAI's recent foray into hardware development, an initiative spearheaded by former Apple executives, including ex-design chief Jony Ive.
Regardless, OpenAI is hardly the first partner to express regret over aligning with Apple. The tech giant has a long-standing pattern of initially embracing collaborations only to later alienate them. The most notable instance involves Google Maps, which was a flagship feature of the original iPhone. Its pivotal role in the device's appeal meant its removal in 2012 — replaced by Apple's markedly inferior Apple Maps product — became one of the decade's biggest tech fiascos, prompting a rare public apology from CEO Tim Cook. The friction between the two companies had been escalating for years, fueled by the launch of Google's Android phone a year after the iPhone's 2007 debut; this rivalry further intensified after Google's then-CEO Eric Schmidt stepped down from Apple's board in 2009.
Adobe also carries its own scars from past dealings. In 2010, Steve Jobs famously refused to support Flash on the iPhone and iPad, publishing a well-known open letter explaining his rationale, a decision that effectively doomed the technology on mobile platforms, from which it never recovered.
Then there is Spotify, which spent years asserting that Apple leveraged its control over the App Store to disadvantage rival music streaming services following the launch of Apple Music in 2015. The European Commission ultimately concurred with Spotify's claims, imposing a fine of nearly €1.8 billion on Apple in March 2024.
Occasionally, these significant rifts can be mended in the pursuit of commercial interests. Google, for example, is now Apple's AI infrastructure partner, having secured a multiyear deal in January to power the next generation of Apple Intelligence with its Gemini models. This arrangement reportedly involves Apple compensating Google approximately $1 billion annually.
In the interim, OpenAI has also contended with its own series of strained relationships recently. Elon Musk's lawsuit against the company — which accuses OpenAI of abandoning its nonprofit founding mission and operating in bad faith — is currently proceeding to trial.
Furthermore, the company has reportedly navigated tensions with Microsoft, its largest financial backer and infrastructure partner, as it strives for greater independence in anticipation of its own initial public offering ambitions.
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